kravings

Mon, 04 May 2026 21:57:55 +0000

Donated capital comes in the form of nonreciprocal transfer of assets to a company. This form of capital is rare with for-profit organizations. However, not-for-profit (NFP) organizations can receive assets. Donated capital is assets given to an entity as a gift. This amount is recorded at its fair value as of the date when the gift was received. Since no new shares are issued, this payment would not increase share capital or share premium. Local regulations would need to be considered to determine the appropriate disclosures. Nonprofits that receive donated assets must record them at fair value on the date of receipt under Generally Accepted Accounting Principles. GAAP treats donations as contributions non.