Accounting for Contributors | Accounting

Contributions are obviously a major source of support for many private not-for-profits. FASB SFAS 116 defines contributions as unconditional transfers of cash or other resources to an entity in a voluntary nonreciprocal transaction. According to SFAS 116, contributions are rec­ognized as revenue in the period received at their fair value. Conditional promises to give are not recognized as revenue until [...]