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Donors will sometimes pledge contributions, add a purpose restriction, or place a time restriction on the donation. When this happens, the recording of the transaction
Donors will sometimes pledge contributions, add a purpose restriction, or place a time restriction on the donation. When this happens, the recording of the transaction is more complicated. According to the Financial Accounting Standards Board FASB certain criteria must be met before a notforprofit NFP organization can record donated services National Council of Nonprofits, Because the FASB governs nongovernmental NFP entities, the rules that apply to businesses apply to NFP organizations. Thus, the timing of the contribution requires that the contribution be recorded as net assets with donor restrictions.For this assignment, do the following:Explain what information about prior donations and expenditures would be important to you if you were considering donating to a charity and why.Describe how you would want the donated services recorded if the criteria are met. Give examples to support your opinion.
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