Government and Non-Profit Accounting
A Not-For-Profit Organization (NFPO) received three cash donations:
a) SAR 10,000 from a donor who said it must be used only for research into a new method for treating substance abusers
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b) SAR 14,000 from a donor who said it may be used for any purpose the trustees choose, but not until the following year; and
c) SAR 50,000 from a donor who said the gift must be maintained in perpetuity, with the income from it to be used for any purpose the trustees choose.
Pass the journal entry in the Book of NFPO.
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