Government grants are an important funding source for many nonprofit organizations, but determining when revenue can be recognized isn't always straightforward.

In this resource, Your Part-Time Controller (YPTC) outlines a practical framework for applying FASB ASC 958 to government grants. The guide walks through how to determine whether a grant should be treated as an exchange transaction or a contribution, evaluate donor-imposed conditions and restrictions, and identify when revenue should be recognized.

The article also includes examples of common grant structures, performance barriers, cost-reimbursement arrangements, and donor restrictions to help nonprofit finance professionals apply the guidance in practice.