The Friends of the City Public Library Foundation is a legally separate, tax-exempt 501c3 entity organized for the purpose of raising funds to provide financial assistance to the Library.Members of the board of the Foundation are elected by the existing Foundation board members.The Foundation provides financial assistance to the Library, but the Foundation receives no financial support from the Library.If dissolved, all of the Foundation assets would revert to the Library.In what manner should the Foundation be presented in the financial statements of the Library?

Question

Quizplus · Accepted Answer

Since the Foundation is a legally separate and tax-exempt entity and it provides financial assistance to the Library, it should be presented discretely in the financial statements of the Library. This means that the Foundation's financial information should be presented separately from the Library's financial information.

The Friends of the City Public Library Foundation Is a Legally