Not-for- profit organizations must recognize revenue in the year in which the unconditional pledge is made.

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According to the Financial Accounting Standards Board's (FASB) Accounting Standards Codification (ASC) 958-605, not-for-profit organizations should recognize revenue in the year in which the unconditional pledge is made, regardless of when the payment is received. This is because an unconditional promise to give is considered to be a legally binding obligation, and should be recognized as revenue when it is made.

Not-For- Profit Organizations Must Recognize Revenue in the Year in Which