Defining Issues | September 2020



FASB issues new requirements for NFP gifts-in-kind

KPMG reports on enhanced presentation and disclosure for not-for-profits that receive contributed nonfinancial assets.

Lisa Hinkson

Lisa Hinkson

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-6399

Kayla Futch

Kayla Futch

Managing Director, Dept. of Professional Practice, KPMG US

+1 212-954-6455

ASU 2020-07 addresses stakeholders’ concerns regarding lack of transparency about how certain gifts-in-kind are valued and used in an NFP’s programs and activities.


ASU 2020-07

  • All not-for-profit entities that receive contributed nonfinancial assets

Relevant dates


Annual periods – Fiscal years beginning after     

June 15, 2021

Interim periods – In fiscal years beginning after

June 15, 2022

Early adoption allowed?



Key impacts

  • Contributed nonfinancial assets are presented in a separate line item in the statement of activities – i.e. apart from contributions of cash and other financial assets.
  • The amount of these contributions is disaggregated by type in the notes.
  • For each type, the following is disclosed, if applicable:
    • Qualitative information about whether the contributions were either monetized or used during the reporting period.
    • Description of the programs or other activities in which the contributions were used.
    • Policy about monetizing contributed nonfinancial assets.
    • Donor-imposed restrictions.
    • Valuation techniques and inputs used in the fair value measurement at initial recognition.
    • The principal (or most advantageous) market used in the fair value measurement if it is a market in which the NFP is prohibited by a donor-imposed restriction from selling or using the contributed nonfinancial asset.
  • The amendments apply on a retrospective basis.

Report contents

  • Applicability
  • Key facts and impacts
  • Which gifts-in-kind are in scope?
  • Principal (or most advantageous) market
  • Format of disclosure
  • Effective dates and transition

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