Gregory University, a private, nonprofit university, receives $10,000,000 from a donor who specified the gift is an endowment, and the earnings are restricted for operating costs associated with a photography program. What effect will the gift have on the Statement of Activities?

Select one:

a. The amount will be reported as a contribution without donor restrictions and decrease the change in net assets without donor restrictions.

b. The amount will be reported as a contribution with donor restrictions and increase the change in net assets with donor restrictions.

c. The amount will be reported as a contribution without donor restrictions and increase the change in net assets without donor restrictions.

d. The amount will be reported as a contribution with donor restrictions and decrease the change in net assets with donor restrictions.