During the year a donor pledged $1,000,000 in funds to a not-for-profit private charter school. The school will receive the pledge if it is able to raise $500,000 in funds over the next year. According to the FASB,how would this pledge be recorded?

Question

Quizplus · Accepted Answer

The pledge is conditional upon the school raising additional funds, so it cannot be recorded as revenue until the condition is met.

During the Year a Donor Pledged $1,000,000 in Funds to a Not-For-Profit