The Turtle Island Singers receive three gifts during the year 2018: (a) $3,000, which may be used for any purpose at any time; (b) $5,000, which must be used for a special concert given in a nursing home; and (c) $1,000, which may be used for any purpose, but only in the year 2019. When it receives the gifts, how should the entity classify them:

Question

Quizplus · Accepted Answer

A purpose-type donor restriction is classified as donor-imposed, because they may be satisfied only by the nonprofit's performance of the specific activity. A donor may also impose time restrictions on the use of his donation. This type of restriction also causes the contribution to be classified as support with donor restrictions.

The Turtle Island Singers Receive Three Gifts During the Year