The board of directors for a nongovernmental not-for-profit organization decided to designate $20,000 each year for the next three years to fund a special research project it was planning to conduct at the end of the three-year period. How would these board-designated resources be reported on the statement of financial position?

Question

The board of directors for a nongovernmental not-for-profit organization decided to designate $20,000 each year for the next three years to fund a special research project it was planning to conduct at the end of the three-year period.  How would these board-designated resources be reported on the statement of financial position?

Quizplus · Accepted Answer

These resources would be reported as net assets without donor restrictions because the designation is made internally by the board, not by an external donor.

The Board of Directors for a Nongovernmental Not-For-Profit Organization Decided