Which entry would be the correct entry on the not-for-profit organization's books to record a donor's gift when the money is simply passing through the not-for-profit organization and creates no direct benefit, and when control of the assets has been relinquished by the donor?

Question

Quizplus · Accepted Answer

Option C suggests recording the gift as a contribution directly to the beneficiary organization, instead of using the not-for-profit organization's books. This is appropriate for situations where the not-for-profit organization is simply serving as a pass-through entity and has no control or discretion over the use of the funds. This method avoids the potential for commingling of funds or confusion over who has the responsibility to use or distribute the funds.

Which Entry Would Be the Correct Entry on the Not-For-Profit