About
Foundational Principles In the Community Diversity, Equity & Inclusion Technical Excellence Alumni TIAG Membership
Careers
Why Cohen & Company Our Culture Total Rewards & Benefits Intern & Entry Level Opportunities Experienced Opportunities
Contact
Akron, OH Baltimore, MD Chicago, IL Cleveland, OH Detroit, MI Milwaukee, WI New York, NY Philadelphia, PA Pittsburgh, PA St. Clair Shores, MI Youngstown, OH
Client Portal
Services Industries Knowledge Center People

About Our Services

We offer tailored solutions — whether private company or owner; public or private fund, adviser or fund service provider; or Fortune 1000 enterprise. Learn how we can help you.

Learn More

Assurance Services

Employee Benefit Plan Audits Internal Controls Investment Company Audits Private Company Audits SOC Readiness & Compliance

Tax Services

Federal Tax Planning & Compliance High Net Worth & Wealth Transfer International Filings & Structuring Investment Company Tax State & Local Tax Tax Credits & Incentives Transaction Tax Planning

Advisory Services

Business Valuations Data & Insights Digital Finance Solutions IT Strategy & Implementation M&A Advisory Outsourced Accounting Solutions Risk Assurance & Advisory Transaction Services Turnaround & Restructuring

Our Industry Expertise

Our industry experience means you can find professionals who speak your language and bring earned insights to the table. Learn how we can help you.

Learn More

Key Industries

Digital Assets Investment Companies Manufacturing Private Companies Private Equity Real Estate & Construction Technology & Life Science
VIEW THE COMPLETE LIST

Knowledge Center

Our team wants to help your team stay up to date. Browse our thought leadership, events and news for insights and a point of view on business-critical topics.

Learn More

Insights

Browse valuable articles and publications our experts have written to help you and your organization answer key questions — and consider new ones.

Read Our Insights

Events

Join us in person and online for events that address timely topics and key business considerations.

Explore Our Events

News

Find out what is happening at Cohen & Company, from industry recognitions and growth updates, to where we are contributing to important media stories.

Read Our News
People
Foundational Principles In the Community Diversity, Equity & Inclusion Technical Excellence Alumni TIAG Membership
Why Cohen & Company Our Culture Total Rewards & Benefits Intern & Entry Level Opportunities Experienced Opportunities
Akron, OH Baltimore, MD Chicago, IL Cleveland, OH Detroit, MI Milwaukee, WI New York, NY Philadelphia, PA Pittsburgh, PA St. Clair Shores, MI Youngstown, OH
Client Portal
Back to Insights

FASB Issues ASU 2020-07 to Enhance Transparency Into Contributed Nonfinancial Assets for Nonprofits

by Tina Dzik

October 09, 2020 Private Company Audits, Not-for-Profit

Not-for-profit organizations receive contributions in many shapes and forms. Over the years, stakeholders have expressed concerns regarding not-for-profit organizations and their lack of transparency surrounding contributed nonfinancial assets, such as fixed assets, supplies, materials and intangible assets. To improve transparency and minimize inconsistencies in reporting, the FASB issued ASU 2020-07 Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets in September 2020.

ASU 2020-07 requires a not-for-profit organization to present contributed nonfinancial assets as a separate line item in the statement of activities, apart from contributions of cash and other financial assets. The ASU also requires enhanced disclosures around contributed nonfinancial assets, including the following:

  • A disaggregation of the amount of contributed nonfinancial assets recognized in the statement of activities by category that depicts the type of contributed nonfinancial assets.
  • For each category of contributed nonfinancial assets, the organization must present:
    • Qualitative information about whether the nonfinancial assets were monetized or used during the reporting period; if used, an organization will disclose a description of the programs or other activities in which those assets were used.
    • The organization’s policy about monetizing rather than using contributed nonfinancial assets.
    • A description of any donor imposed restrictions associated with contributed nonfinancial assets.
    • A description of the valuation techniques and inputs used to arrive at a fair value measurement at initial recognition.
    • The principal market used to arrive at a fair market measure, if it is a market in which the organization is prohibited by a donor imposed restriction from selling or using the contributed nonfinancial asset.

In current conditions, not-for-profit organizations are looking for ways to increase contributions and are more willing to accept contributions of nonfinancial assets with or without donor imposed restrictions.  With the issuance of ASU 2020-07, not-for-profit organizations will need to be ready to inform stakeholders, including potential donors, of their policies for monetizing rather than using these contributed nonfinancial assets to further support their mission.  

Contact Tina Dzik at tdzik@cohencpa.com or a member of your service team to discuss this topic further.


Like what you read? Sign up to receive our latest tax, accounting and business blogs and podcasts.

Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.

About the Authors

Tina Dzik, CPA, MBA

Partner, Assurance
tdzik@cohencpa.com
216.774.1125

Sign Up for Our Emails & Events

Receive insights from our specialists in a variety of areas and timely information on upcoming events directly to your inbox as they go live in our online Knowledge Center.

Subscribe Today
Subscribe to our newsletter
About Contact Submit RFP Privacy Policy
LinkedIn Twitter Facebook
© 2023 Cohen & Company