A voluntary health and welfare organization received unrestricted cash donations of $20,000 from donors who attended a dinner held for the benefit of the organization.The costs of the dinner,including room rental,and other expenses,amounted to $7,000.On the statement of activities prepared for the voluntary health and welfare organization,the expenses of the dinner should be:
A)reported as management and general expenses.
B)netted against the $20,000 of contribution revenue.
C)reported as fundraising costs.
D)reported as programmatic expenses.

Question

Quizplus · Accepted Answer

The costs of the dinner should be reported as fundraising costs since it was held for the benefit of the organization and was meant to raise funds.

A Voluntary Health and Welfare Organization Received Unrestricted Cash Donations