If a Donor Selects a Scholarship Recipient and Then Donates

If a donor selects a scholarship recipient and then donates cash to a ballet school to fund that scholarship, the ballet school would:

A) Record a liability, as it is acting as an agent for the donation
B) Record the donated cash as a contribution
C) Not record the donation at all, but disclose it in the footnotes
D) Record the scholarship awarded as a reduction of revenue