[Anonymous]

For nonprofit, what is the difference between revenue and public support? Arent they the same thing?

The Acme Company gave a $30,000 cash gift to the Art League of Sampson with the specification that the money be conveyed to a private not-for-profit art museum in a nearby city. The art league is given variance powers (which allow it to change the beneficiary). Acme Company has not retained the right to revoke the gift or change the beneficiary. Upon receipt of the $30,000, how does the Art League of Sampson report this gift?

A It is not reported since it is simply passing through to the museum.

B As revenue

C As public support

D As a liability

The art league has been given control over this money because it has variance powers, the ability to change the beneficiary. Because it does have control, the initial gift is viewed as to the art league rather than to the museum and is recorded by the art league as public support.

[Anonymous]

They can be the same thing, but they can be different as well. I work for a non-profit college. If someone buys something in our college store (aka “spirit store” aka “book store” before books were bought online), that's definitely revenue – it's a purchase, not a donation. Same with tuition that we're paid. However, if someone gives us a $10,000 check to support the institution but *not* paying tuition, that's public support.

So, for a non-profit that has no services that it charges for, all “income” so to speak would be public support. However, most non-profits that I've worked with have some good or service they provide for a charge, as well as receiving donations/grants/etc.

[Anonymous]

Much thanks.

[Author]

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