Problem
According to FASB 116, conditional promises to give shall be recognized when the conditions on which they depend are substantially met. If a private foundation agrees to match 50% of all other contributions up to $ 1 million, how will an NFP organization record revenues if $2,200,000 was raised in other donations in one year?
Only $500,000 of conditional contributions will have to be received for $2.2 revenue recognition.