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?
- As an increase in contribution revenue.
- As an increase in liabilities.
- As either an increase in contribution revenue or liabilities.
- As neither an increase in contribution revenue nor liabilities.