A regular contributor to a not-for-profit organization has agreed to directly pay the rental charges for a local banquet facility that will be used for the organization’s annual financial campaign kick-off event. How should this transaction be reported in the financial statements of the not-for-profit organization?

a. If material, the rental costs paid on its behalf should, at a minimum, be disclosed in the notes.

b. The not-for-profit organization should only report expenses for which it expended funds or incurred liabilities.

c. The costs paid on its behalf would be reported both as a revenue and an expense of the not-for-profit organization. wale

d. The costs paid on its behalf would be reported solely as a revenue of the organization as it was, in effect, a donation.

e. The transaction would not be reported in the financial statements of the not-for-profit organization.