If a private not-for-profit fails to comply with donor restriction on contributions received, the organization must evaluate whether to accrue and disclose a contingent liability.

Question

Quizplus · Accepted Answer

In evaluating the failure to comply with donor restrictions, the organization should consider both whether the noncompliance could result in a liability to refund the contributions and whether the noncompliance is likely to result in a loss of future revenues.

If a Private Not-For-Profit Fails to Comply with Donor Restriction