During the Year a Donor Pledged $1,000,000 in Funds to a Not-For-Profit

question 72

Multiple Choice

During the year a donor pledged $1,000,000 in funds to a not-for-profit private charter school. The school will receive the pledge if it is able to raise $500,000 in funds over the next year. According to the FASB, how would this pledge be recorded?

• A) Contribution-With Donor Restrictions.
• B) Contribution-Without Donor Restrictions.
• C) Deferred Revenue.
• D) It would not be recorded.

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Definitions:

Inspire

To fill someone with the urge or ability to do or feel something, especially something creative or positive.

Persuade

The act of convincing or influencing someone to do or believe in something through reasoning or argument.

Warn

To inform someone about a potential danger, problem, or other unpleasant situation in advance.

Face-to-Face Conversation

Direct communication between two or more individuals where they are in each other's physical presence, allowing for immediate feedback and personal interaction.