1. A not-for-profit entity receives a restricted gift. When and in which type of fund should the not-for-profit entity recognize the revenue? When and in which type of fund should the not-for-profit entity recognize the related expense? What is the reason for the inconsistency between the treatment for how revenues and expenses are reported?
2. A foundation promises to donate $1,000,000 to a local college (a not-for-profit organization) in one year. When and in what amount should the college recognize revenue?
3. How do not-for-profit entities account for investments? Is it the same or different than the treatment from businesses? Why?