A private not-for-profit entity sends a mailing to all of its current and former members regardless of whether they have ever donated money or not. The mailing has a total cost of $22,000. It asks for monetary contributions to help achieve the charity’s stated mission. In addition, 80 percent of the mailed material is educational in nature, providing information about the entity’s goals. Which of the following is true?

a. Some part of the $22,000 should be reported as a program service cost because of the educational materials included.

b. No part of the $22,000 should be reported as a program service cost because there is no specific call to action.

c. No part of the $22,000 should be reported as a program service cost because the mailing was sent to both current and former members regardless of their donation history.

d. Some part of the $22,000 should be reported as a program service cost because more than 50 percent of the material was educational in nature.