Chapter 19, Problem 19.24.20P

To determine

Concept Introduction:

Fund raising costs for a not-for-profit organisation:

Fund raising costs for a not-for profit organisation includes all activities which involve inducing potential donors to contribute cash, services, materials or others. These fund raising costs should be part of expenditure for the organisation. These should not be netted off from the revenue generated by these fund raising activities.

:

If the statement ‘fund raising cost incurred to obtain contribution revenue should be accounted for as a deduction from contribution revenue’ is true or false.