Non-Profit Endowments and ASC 958-205 (FAS 117-1): Compliance Challenges

Making Tough Decisions on Asset Classification and Disclosures

Recording of a 110-minute CPE webinar with Q&A

Conducted on Wednesday, July 13, 2011

Recorded event now available

or call 1-800-926-7926

This teleconference will provide accounting advisors with an in-depth analysis of FASB's asset classification standards for non-profit endowments and will explore common compliance challenges to date in preparing future financial statements.


The complexity of FASB's Staff Position ASC 958-205 (formerly known as FAS 117-1) and its asset clarification and disclosure requirements is underscored by expectations that FASB may soon undertake revisions to better explain certain issues for non-profits that rely on endowments.

In the meantime, advisors must cope. With recent actions by New York and Florida, nearly all states have adopted the Uniform Prudent Management of Institutional Funds Act (UPMIFA). Non-profits in those states must prepare to revamp donor-restricted endowment asset classifications.

New York's law includes significant deviations. Mistakes, such as treating reports as though UPMIFA wasn't adopted, are dangerous. Advisors must immerse themselves in FASB's expectations and prepare to advise clients to change asset classification and reporting procedures as needed.

Listen as our seasoned panel of non-profit accounting professionals reviews key terms of ASC 958-205 and explores lessons learned in dealing with its demands so far.



  1. Understanding UPMIFA’s impact on FASB’s guidance
    1. A brief history of the UPMIFA model law
    2. Discussion of UPMIFA adoptions by states
      1. 2010 adoption by New York; where state takes its own approach
      2. Florida UPMIFA bill awaiting governor’s signature
      3. Progress on Mississippi bill
  2. FASB’s interpretation of asset classification for donor-restricted endowments
    1. Classifying permanently restricted assets
    2. Historic-dollar-value vs. prudent investor standard
    3. Temporarily restricted net assets
  3. Current disclosure issues with financial statements
    1. The governing board’s interpretation of the law that regulates net asset classification of donor-restricted funds
    2. Explanation of the non-profit’s spending policies
    3. Explanation of the non-profit’s investment policies
    4. Report on the composition of net assets
    5. Report reconciling balances at start and finish of period
  4. Compliance scenarios and decisions that have occurred since adoption of ASC 958-205 (FAS 117-1)
    1. Accounting and legal cycles
    2. Foundation policy revisions


The panel will give you the tools you need to advise non-profits adapting to ASC 958-205 challenges, including:

  • Reacting to the latest state actions on UPMIFA adoption, and using the standards set out in the UPMIFA model to facilitate FASB compliance.
  • Developing best practices for the classification method for donor-restricted endowments.
  • Meeting the information disclosure requirements for both donor-restricted and board-restricted endowments.
  • Understanding compliance challenges that arise under ASC 958-205( FAS 117-1) and how to deal with them.

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.


Brian Zygmunt
Brian Zygmunt
Senior Manager

He works on non-profit audits and has 13 years of experience, the majority of them in the public sector arena. Before...  |  Read More

Neely Duncan
Neely Duncan
Lane Gorman Trubitt

Ms. Duncan has more than 10 years of public accounting auditing experience on a variety of planning, risk assessment,...  |  Read More

Rhona Kwiram
Rhona Kwiram

Clark Nuber

She is attached to the firm's Not-For-Profit Services Group and handles endowment, audit, consulting, management...  |  Read More

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