A nongovernment not-for-profit organization received a cash donation of $100,000 restricted for a specific operating purpose. Only $20,000 of the donation was spent during the current year. How should the donation be reported be in the statement of activities?

Question

Quizplus · Accepted Answer

The donation should be reported as "Revenues with donor restrictions - $100,000" because it was given with a specific purpose in mind, indicating that it is restricted by the donor for that purpose. The entire amount is recognized as revenue with restrictions in the period it is received, regardless of how much is spent.

A Nongovernment Not-For-Profit Organization Received a Cash Donation of $100,000