The following nancial statements relate to the American Wildlife Fund
The following financial statements relate to the American Wildlife Fund (AWF) and the National Wildlife Fund (NWF), two real not-for-profits devoted to the protection of wildlife and other natural resources. The data were taken from reports prepared by a not-for-profit organization that evaluates other not-for-profit organizations.
The data are obviously not presented in a format that is in accord with GAAP, including the classification of revenues.
1. Compare the two organizations. Which organization would you rate more favorably with respect to the revenues in the following list? That is, which of the revenues are likely to be the more stable and thereby indicative of a more fiscally sound organization? Explain your response. You must use your own independent judgment; there is no specific guidance in the text for this type of organization. Comment on which organization you think, on balance, has the preferable mix of revenues.
a. Contributions and in-kind contributions
b. Sales of publications
c. Investment income, including that derived from unrealized gains
d. Government grants and contracts
e. Bequests and endowments
2. Which of the two organizations would you rate more favorably with respect to fund-raising expenses? Explain.
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