A nongovernment voluntary health and welfare organization received unrestricted cash donations of $23,000 for the current year, $30,000 of donations to be used for the following year, and a $100,000 donation to establish a permanent investment endowment. The organization should report

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The organization should report unrestricted revenues of $23,000, temporarily restricted revenues of $30,000, and permanently restricted revenues of $100,000. The $23,000 in unrestricted cash donations can be used for any purpose, while the $30,000 of donations to be used for the following year are temporarily restricted until that time. The $100,000 donation to establish a permanent investment endowment is permanently restricted, meaning that the principal amount cannot be spent and only the investment income can be used for specific purposes approved by the donor. Therefore, the organization should report all three types of revenue in its financial statements.

A Nongovernment Voluntary Health and Welfare Organization Received Unrestricted Cash