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Which of the following would be considered contribution revenue or support of a not-for-profit organization?

a. Gain on disposal of capital assets.
b.Investment earnings.
c. Money received from rental of surplus office space.
d. Monies received from a fund-raising campaign.

1 Answer

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Final answer:

Contribution revenue or support for a not-for-profit organization refers to the funds or resources received by the organization to support its mission and activities. This revenue is derived from various sources, including monies received from a fund-raising campaign, money received from rental of surplus office space, and investment earnings.

Step-by-step explanation:



Contribution revenue or support for a not-for-profit organization refers to the funds or resources received by the organization to support its mission and activities. This revenue is derived from various sources, including:

  1. Monies received from a fund-raising campaign
  2. Money received from rental of surplus office space
  3. Investment earnings
  4. These revenue sources contribute to the organization's financial stability and ability to carry out its work.

In the realm of accounting for not-for-profit organizations, contribution revenue or support is considered as the funds received to support the organization's purpose and mission without the expectation of a direct benefit in return. From the options provided, d. Monies received from a fund-raising campaign would be considered contribution revenue or support.

Unlike the other options which reflect either investment activities or unrelated business income, funds from a fundraising campaign are typically donated with the intent of supporting the organization's mission and are not provided in exchange for goods or services.

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