7
Voluntary Nonexchange Transactions
•Legislative or contractual agreements entered into willingly by two or more parties
•Examples
–non-entitlement grant programs
–private donations
–
•*  Changes in receivable/deferred revenue calculations for the grants/entitlement closing packages for 2001.
–
Both parties may be governments or one party may be a nongovernmental entity, including and individual.

Often the provider establishes purpose restrictions and eligibility requirements.

Principal characteristics of voluntary nonexchange transactions are:

1)  they are not imposed on the provider or the recipient, and
2)  fulfillment of eligibility requirements is essential for a transaction to occur