Home Away, a nongovernmental not-for-profit organization, provides food and shelter to victims of natural disasters. Home Away received a $15,000 gift with the stipulation that the funds be used to buy beds. In which net asset class should Home Away report the contribution?

Home away should record the contribution to a Net assets with donor restriction

Step-by-step explanation

A Net asset with donor restriction is the part of net assets of a not - for - profit making organisation that is subject to donor-imposed restrictions.

The stipulation that the fund of $15,000 should be used to buy beds automatically makes it to be classified as a Net assets with donor restriction item.