Donations are received by an NFP organization. The organization's Board of Directors decides to set aside the money to pay for new computers and software. The donations are reported as:

Question

Quizplus · Accepted Answer

The donations are reported as contributions increasing net assets without donor restrictions because the decision to set aside the money for new computers and software was made by the organization's Board of Directors, not by the donors. This means there are no donor-imposed restrictions on how the funds are used.

Donations Are Received by an NFP Organization