A donor gave $100,000 to a foundation,which is financially related to a nongovernmental,not-for-profit organization.The foundation,which is also a nongovernmental,not-for-profit organization,would record the $100,000 as:

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The $100,000 donation would be recorded as revenue because it represents an increase in the foundation's assets (cash) without any corresponding increase in liabilities. As a non-profit organization, the foundation's primary source of funding is through donations, so recording the donation as revenue accurately reflects the financial activity of the organization.

A Donor Gave $100,000 to a Foundation,which Is Financially Related