Which of the Following Is Not a Condition That Must

question 25

Multiple Choice

Which of the following is not a condition that must be met for contributed services to a not-for-profit organization (NPO) to be recorded as both a contribution and as an expense?

• A)The service creates or enhances nonfinancial assets,such as a carpenter renovating a building.
• B)The service is provided by someone who possesses specialized skills,such as a lawyer preparing contracts.
• C)The service provides tangible benefit,such as serving food to clients.
• D)The service would have to be purchased if not donated,such as a pro bono annual audit by a local audit firm.

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Definitions:

Elected

Chosen by vote for a particular office or position in an organizational setup or governmental framework.

Voters

Individuals who have the legal right and are registered to participate in electing public officials or deciding on public issues through the electoral process.

Mediation

A form of alternative dispute resolution where a neutral third party helps disputants come to a consensus on their own.

Arbitration

A method of dispute resolution where a neutral third party (the arbitrator) makes a binding decision, outside of a courtroom.