What is a contribution? How are contributions classified? (NONPROFIT FINANCE)

Solutions

Expert Solution

Contributions are unconditional transfers of assets (or a settlement of liabilities) to a nonprofit entity that are nonreciprocal — meaning the donor receives nothing of value in exchange for the donation

Contributions can be classified as unrestricted, temporarily restricted, or permanently restricted. Also, contributions can be in the form of cash or noncash, such as tangible property or services, or they could be recognized as a donor’s promise to give cash or noncash resources.
A contribution should be recognized at its fair market value in the period it was received and/or unconditionally given. Donor-imposed restrictions do not affect the timing or value of the recognition

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Explain what makes IRA Contributions deductible or not. Can a contribution still be made to an...

Explain what makes IRA Contributions deductible or not. Can a contribution still be made to an IRA if it is not deductible?Discuss in 2-5sentences. Explain the similarities and difference between Qualified Roth IRA distribution and a Non-Qualified Roth IRA distribution. Discuss in 2-5 sentences.

Differentiate how nonprofit colleges, universities, and healthcare organizations financially report receiving cash vs. material contributions, and...

Differentiate how nonprofit colleges, universities, and healthcare organizations financially report receiving cash vs. material contributions, and evaluate how this reporting concept impacts business decisions in those organizations

How are charitable contributions reported for individuals? What are the reporting requirement for contributions of property?

what expenditures are and how expenditures are classified

The board of directors for Oak Corporation authorized a charitable contribution to a qualifying nonprofit organization....

The board of directors for Oak Corporation authorized a charitable contribution to a qualifying nonprofit organization. However, the contribution was not actually made before the end of the tax year. Under what circumstances could the company still take a current-year deduction for this contribution?..

Which of the following contributions is allowed as a charitable contribution deduction? a. Lost income associated...

Which of the following contributions is allowed as a charitable contribution deduction? a. Lost income associated with rent free use of a taxpayer’s property by a qualifying charity. b. Automobile mileage incurred by the taxpayer in rendering services to a qualifying charity. c. The value of time or services rendered to a charitable organization. d. All of the above. e. None of the above.

What is a bond? How the bond works? How the bonds are classified?

1. What is money and how is it classified? 2. What is the money? 3. What...

1. What is money and how is it classified? 2. What is the money? 3. What does the Federal Reserve do? How is money affect by the Federal Reserve?

Explain what “contributions in kind” are with respect to contributions to a registered account. Are “in-kind”...

Explain what “contributions in kind” are with respect to contributions to a registered account. Are “in-kind” contributions to your RRSP account permitted? List and describe two (2) likely tax implication of making a “contribution in kind” of stocks from your non-registered investment account to your RRSP. d. List four (4) disadvantages of contributing to your RRSP

What are the contributions of glycolisis and citric acid cycle to the aerobic oxidation, how is...

What are the contributions of glycolisis and citric acid cycle to the aerobic oxidation, how is the proton motive force is generated?

Subjects