By: Rich Banner, CPA, Partner

On August 3rd, the Financial Accounting Standards Board (FASB) exposed for comment a proposed Accounting Standards Update (ASU) related to accounting for contributions received and made.  The comment period will end on November 1, 2017.

The impetus for the FASB to issue the proposed ASU was a diversity in practice amongst not-for-profit organizations. The proposed ASU seeks to provide a better way for not-for-profits to evaluate whether grants should be treated as exchange transactions or contributions.  This improved method would utilize clarifying guidance to assist the grant recipient in determining if the provider is receiving value in return.    Also, the FASB is seeking to improve guidance to assist not-for-profits in determining if contributions are conditional or unconditional and whether there are donor-imposed restrictions.  It was noted by the FASB that the guidance would apply to both recipients and providers of contributions.

The implementation dates for this proposed ASU follow those of the revenue recognition standard:

    • Annual reporting periods beginning after December 15, 2017, including interim periods within that annual period, for not-for-profits that has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market.
    • Annual reporting periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019.

Early implementation of the proposed standard would be permitted whether the revenue recognition standard is adopted early.

Tate & Tryon will continue to monitor developments surrounding this proposed change in accounting standards and will be discussing it in future articles over the coming months.  For those interested in reading the full text of the proposed ASU or commenting on it, the proposed ASU is available through


Tax-Exempt Organizations and 2017 Tax Reform

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Dear Friends in the Tax-Exempt Community:
Below is a brief overview of the key tax reform proposals relating to tax-exempt organizations. As you know, Congress is currently putting together legislation to effect significant tax reform with a timeline of having it enacted this year. Although Congress is still negotiating, the following reform proposals may impact your […]

Royalty Income of Nonprofits is Being Targeted for Taxation!

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The Senate Finance Committee’s version of the Tax Cuts and Jobs Act includes a number of items that would impact nonprofits.
Perhaps the most immediately significant is the provision that would call for taxing the revenue generated from royalties related to licensing a nonprofit’s name and/or logo. Royalty revenue has traditionally been exempt from income taxes. […]

How Could Federal Tax Reform Impact Nonprofits?

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Exempt Organization Tax11/17/2017


By:  Doug Boedeker, CPA, Partner
It has been a challenge staying current on the twists and turns involved with the proposals for Federal Tax Reform. Many of the ideas within the tax reform package have a direct impact on nonprofit organizations.
Charitable deductions, executive compensation, employee fringe benefits, and intermediate sanctions are just some of the “hot […]

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