ASC 958-10: Not-For-Profit Entities - Overall

"958-10-15-1 The Subtopics within the Not-for-Profit Entities Topic only provide incremental industry specific guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Not-for-Profit Entities Subtopics. Entities within the scope of this Topic shall also comply with the applicable guidance not included in this Topic.

958-10-15-2 The guidance in this Topic applies to all not-for-profit entities (NFPs).

958-10-15-3 The guidance in this Topic applies to the following nongovernmental NFPs:

a. Cemetery organizations

b. Civic and community organizations

c. Colleges and universities

d. Elementary and secondary schools

e. Federated fundraising organizations

f. Fraternal organizations

g. Health care entities (see also Topic 954)

h. Labor unions

i. Libraries

j. Museums

k. Other cultural organizations

l. Performing arts organizations

m. Political parties

n. Political action committees

o. Private and community foundations

p. Professional associations

q. Public broadcasting stations

r. Religious organizations

s. Research and scientific organizations

t. Social and country clubs

u. Trade associations

v. Voluntary health and welfare entities

w. Zoological and botanical societies.

Additionally, the guidance in this Topic applies to all entities that meet the definition of an NFP, regardless of whether they are included in this list.

958-10-15-4 NFPs have the characteristics in criteria (a), (b), and (c) of the definition of not-forprofit entity in varying degrees. An entity could meet the definition of an NFP without meeting criterion (a), (b), or (c). For example, although trade associations, country clubs, unions, and other similar entities often meet criterion (b) in the definition of an NFP (that is, they have operating purposes other than to provide goods or services at a profit) but may not meet the other criteria, those entities are within the scope of this Topic.

958-10-15-5 Entities that clearly fall outside this definition include the following:

a. All investor-owned entities

b. Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.

958-10-15-6 The Internal Revenue Service determines whether an entity qualifies for exemption from federal income tax. For example, an entity may meet the definition of an NFP, but may nevertheless not be tax-exempt under the Internal Revenue Code because it has violated the rules applicable to tax-exempt organizations.