Final answer:
An intermediary organization must report contribution revenue if it has discretion in the allocation of funds to beneficiary organizations or individuals. This reporting requirement applies regardless of whether donors are individuals or if beneficiaries are other organizations or receiving assistance directly.
Step-by-step explanation:
When considering when an intermediary organization must report contribution revenue from donors, it's essential to understand the role of an intermediary. In the context of financial markets, an intermediary functions as a go-between for different parties. For instance, banks act as financial intermediaries by channeling funds from savers who deposit money to borrowers who take out loans. Similarly, a particular organization that facilitates the transfer of donations to beneficiary organizations or individuals acts in an intermediary capacity.
If this intermediary organization has discretion in the selection of beneficiary organizations, it is essentially making decisions on behalf of the donors, so it is responsible for reporting the received contributions. The type of beneficiary does not typically affect the requirement to report contribution revenue. Therefore, whether the donors are individuals, or the beneficiaries are other organizations or individuals receiving assistance, the crucial factor is whether the intermediary organization has discretion over the allocation of funds.