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 entire $100,000 donation should be reported as temporarily restricted revenues because it is restricted for a specific purpose, regardless of how much was spent during the current year.

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