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Not for profit organizations: Sources of revenues

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The primary revenue source for not-for-profit organizations is contributions. Please define what a contribution is, and discuss how the different types of contributions are recognized as revenue (i.e. cash contributions, unconditional promise to give, conditional promise to give, multi-year pledge).

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Solution Summary

This solution discusses the various contribution sources of not-for-profit organizations, and explains how the different types of contributions are recognized as revenue. Additionally, this solution provides links to reference sources for further research of the topic.

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Before I answer the question, I must state that in Nonprofit Organizations - Theory, Management, and Policy by Helmut K. Anheier (2005) nonprofits receive the bulk of their revenue through voluntary dues and contributions (p. 45). Equally, many nonprofits are not even charitable organizations, but advocate for special interests or promote interests through lobbying (p. 38). But with regards to revenue, the sources a nonprofit has are:

* origin (public sector, market, organization, individual);
* kind (monetary or ...

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