A private not-for-profit organization received a gift of $640,000 with purpose restrictions in 2014. In 2015 funds were expended for the purpose outlined in the gift,however,it was not possible to determine whether the restricted funds or unrestricted funds were used. The presumption should be:

Question

Quizplus · Accepted Answer

The presumption should be that the restricted funds would have been used first, as the organization must ensure that the purpose of the gift is fulfilled before using any unrestricted funds.

A Private Not-For-Profit Organization Received a Gift of $640,000 with Purpose