Peter Smith made a cash donation in January 2005, to World-Wide Helpers, a nongovernmental, nonprofit organization that raises contributions for others. Peter specified the beneficiaries for his contribution, but provided variance power to World-Wide Helpers to use the donation for beneficiaries not specified by Peter. According to SFAS 136, Transfer of Assets to a Not-for-Profit Organization or Charitable Trust That Raises or Holds Contributions for Others, how should World-Wide Helpers account for Peter’s cash donation?

  1. As an increase in contribution revenue.
  2. As an increase in liabilities.
  3. As either an increase in contribution revenue or liabilities.
  4. As neither an increase in contribution revenue nor liabilities.