Tanya.peterss posted a question May 03, 2013 at 7:00am The Shelter Association of Gogebic County receives the majority of its funding from the local chapter of the United Way. That federated fund-raising organization has this policy: If a member agency reports unrestricted net assets in excess of one year's budgeted revenues and support, the excess will be deducted from its allocation for next year. The association's reporting year ends December 31st, and unrestricted nlet assets are just about equal to last year's revenues and support. On December 30, Bill Olson contacts the Shelter Association about making a large contribution. It is important to Bill to make the gift in the current calendar year so that he can deduct the charitable contribution on his personal federal income tax return. However, Bill has heard that the treasurer of the association and several board members recently resigned after allegations of financial misstatements were made. He is considering restricting his gift for the direct purposes of acquiring food, clothing and supplies for the homeless over the next several years so that management could use none of the money for overhead expenses. RequiredTAKE THE POSITION OF THE ASSOCIATION'S CPA a). Do you recommend that the association advise Mr. Olsen to make the gift unrestricted or restricted? Give your reasons. b). Mr. Olsen asks you how he can be sure that the association spends his contribution as he intends, assuming that he restricts the purpose of his gift, as well as efficiently and effectively. Explain to Mr. Olsen what kind of public information is available to him. Do you consider that information adequate to assess whether the not-for-profit agency was efficient and effective in its use of public donations