NFP Donations

Question 1

Contributed services are recognized by a private not-for-profit organization under either of two conditions:

Answer 1

they enhance a nonfinancial asset or

they require a specialized skill possessed by the contributor that would need to be purchased if not donated

Question 2

If an intermediary has variance powers (control over the asset donation)

Answer 2

Contribution is to the industry instead of the intended beneficiary.

It is recorded as public support

Question 3

The amount that is conveyed to a private not-for-profit organization up to fair value

Answer 3

is considered revenue

Question 4

If the intermediary does not have variance powers

Answer 4

receipt of funds is recorded as a Liability

Question 5

The amount that is conveyed to a private not-for-profit organization in excess of the fair value received

Answer 5

is considered to be a donation and should be reported in that manner

Question 6

when a NFP receives a donated asset

Answer 6

it must be recorded at FMV

It must be recorded as public support

Question 7

If a donation will not be received until a future date

Answer 7

report at Present value minus a reduction of any uncollectible accounts

It’s also temporarily restricted

Question 8

what requirements must be met before the painting can be omitted as an asset for reporting purposes?

Answer 8

It must be added to a collection for public exhibition, education, or research

It must be protected and preserved

A policy must be in place so that, if sold, the receipts will be used to acquire other collection items (rather than go for operations)