contributions to help achieve the organization’s mission.

In addition, 80 percent of the material

included in the mailing is educational in nature, providing data about the organization’s goals.
Which of the following is true?a. Some part of the $22,000 should be reported as a program
service cost because of the educational materials included.b. No part of the $22,000 should be
reported as a program service cost because there is no specific call to action.c. No part of the
$22,000 should be reported as a program service cost because the mailing was sent to both
previous donors and individuals who have not made donations.d. Some part of the $22,000
should be reported as a program service cost because more than 50 percent of the material
was educational in nature.11. A voluntary health and welfare organization receives $32,000 in
cash from solicitations made in the local community. The organization receives an additional
$1,500 from members in payment of annual dues. Members are assumed to receive benefits
roughly equal in value to the amount of dues paid. How should this money be recorded?a.
Revenues of $33,500.b. Public support of $33,500.c. Public support of $32,000 and a $1,500
increase in the fund balance.d. Public support of $32,000 and revenue of $1,500.View Solution:
1 A local citizen gives a not for profit organization a cash
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