In a Not-For-Profit Organization, Donations Received for a Particular Purpose

question 5

Short Answer

In a not-for-profit organization, donations received for a particular purpose are recorded as Net Assets _1.__. Donations that are cannot be spent, but the earnings can be are referred to as Net Assets _1.__. Profits and donations with no donor specifications are referred to as Net Assets ______2__.

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Definitions:

Cost-Effective

Describes a process, method, or system that provides the best possible outcome or value for the money spent.

Potential Consumers

Individuals or groups who are likely to buy a product or service but have not yet made the purchase.

Retail Price

The total cost that a customer pays for a product or service when purchased through a retail channel, including overheads and profit margins.

Structural Risk

A measure of a firm’s difficulty when relationships with vendors do not work as expected.