[lindjlny]

Can someone explain part of this transaction to me, “A donor promises to contribute funds to defray construction costs of a new building contingent UPON SECURING OPERATING FUNDING FOR THE PROGRAM WHICH IT IS TO HOUSE.” In the TBS it classifies under net asset as “contingent, not classified”. I don’t understand the part that is capitalized. Any help would be greatly appreciated. Thanks.

[Anonymous]

Do you mean the capitalized letters? (It took me a few seconds to figure out if you meant that or if something was being capitalized as opposed to expensed)

I think it's saying that the donor will give the money for constructing the house only if (and when) money is secured for the program that is going to use the house. So because he is only donating the money as long as something else happens, it is classified as contingent because it's dependant on something else occurring.

I think that's what it means.

[Author]

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