Does your organization accept donations of nonfinancial assets,
such as vehicles, food, clothing, supplies, equipment or services?
If so, be sure you are familiar with the new accounting rules that
enhance the reporting requirements for contributed nonfinancial
assets, commonly known as in-kind donations or gifts-in-kind. The
new rules — issued in 2020 by the Financial Accounting
Standards Board (FASB) — are found in Accounting Standards
Update (ASU) 2020-07.
WHO IS AFFECTED?
The new rules apply to not-for-profit entities that receive
contributed nonfinancial assets and prepare their financial
statements in accordance with generally accepted accounting
principles (GAAP). Nonfinancial assets may include:
