A donor gave $60,000 to a nongovernmental,not-for-profit charity with instructions that the funds be transferred to Sam Smith,an individual who lost his home in a fire.The not-for-profit would:

Question

Quizplus · Accepted Answer

The not-for-profit would record the $60,000 cash and credit a liability because it has a legal responsibility to transfer the funds to Sam Smith, an individual. This is not a contribution to the not-for-profit, but rather a pass-through of funds. Therefore, it would not be appropriate to record it as revenue.

A Donor Gave $60,000 to a Nongovernmental,not-For-Profit Charity with Instructions