Answer to Question #299922 in Financial Math for james

Question

A.    Distinguish the following terms as used in the Not-for- profit organizations.

                                     i.           Capital and revenue donations

                                   ii.           Receipts and payment accounts

Life fund                 

Answer 1

revenue donations refers to the funds generated through its primary operations. It may include amounts collected through donations, contributions, fundraising, membership, and service fees. Capital donations refers to sources of cash such as Fees for goods and/or services, Individual donations and major gifts,Bequests, Corporate contributions,Foundation grants.

Receipts are nothing but the incoming of money or money equivalents. On the other hand, Payments refer to the disbursement of cash or cash equivalents to another party.