A donor gave $$75,000$ to a nongovernmental, not$-$for$-$profit charity with instructions that the funds be transferred to Sam Smith, an individual who lost his home in a fire. The not$-$for$-$profit would:

Multiple Choice

record the $$75,000$ cash and credit revenue with donor restrictions.

record the $$75,000$ cash and credit a liability.

not record the transaction, because the money is going directly to the intended recipient.

either record the $$75,000$ cash and credit revenue with donor restrictions or record the $$75,000$ cash and credit a liability, depending upon the policy of the not$-$for$-$profit.