Gardner is the treasurer for the Central Illinois chapter of a national not-for-profit organization, the Alzheimer’s Association. The chapter sends some of the money it raises to the national organization to support research into Alzheimer’s disease. The chapter also provides information about the disease and sponsors support programs for families of patients within the community. The chapter has just received a significant pledge from a donor who has offered to contribute $20,000 a year for the next five years on the condition that the chapter sponsor a series of annual educational programs about the disease. If it does not do so, the donor will direct future contributions elsewhere.
The donor has already contributed the first $20,000, and the chapter has made the arrangements for the first educational workshop, which will take place in six weeks, shortly after the chapter’s fiscal year-end.
Gardner is aware that the chapter intends to continue the educational workshops and has asked you, as a public accountant who volunteers to audit the chapter’s financial statements each year, to research the appropriate accounting for the donor $20,000 contribution and $80,000 pledge in the chapter’s financial statements for the current fiscal year.

Required
Obtain the most current accounting standards for accounting for conditional gifts to not-for-profit organizations. You can obtain access to accounting standards through the Accounting Standards Codification®. Write a memo to Gardner reporting your research findings. Support your recommendations with citations and quotations from the authoritative financial reporting standards.