On December 31, 2005, Hope Haven, a private not-for-profit voluntary health and welfare organization, received a pledge from a donor who stipulated that $1,000 would be given to the organization each year for the next five years, starting on December 31, 2006. Present value factors at 6% for five periods are presented below.


Present value of an ordinary annuity for 5 periods at 6%


Present value of an annuity due for 5 periods at 6%


For the year ended December 31, 2005, Hope Haven should report, on its statement of activities,

  1. Unrestricted revenues of $5,000.
  2. Temporarily restricted revenues of $4,465.
  3. Unrestricted revenues of $4,465.
  4. Temporarily restricted revenues of $4,212.