The Linkon Association receives the majority of its funding from a local chapter of the United Way, which as a federated fund raiser, has a policy

The Linkon Association receives the majority of its funding from a local chapter of the United Way, which as a federated fund raiser, has a policy that if a member agency (like Linkon) reports unrestricted net assets in excess of one year’s budget revenues and support, the excess will be deducted from the member’s allocation for next year. The association’s reporting year ends Dec 31 and unrestricted net assets are just about equal to last year’s revenues and support. On Dec 30, a potential donor contacts Linkon about making a large contribution. It is important to the donor that he make the gift in the current calendar year for tax purposes. He wants the contribution to be used for food, clothing and supplies for the homeless. He has heard that the treasurer and several board members of the association recently resigned after allegations of financial mismanagement, so he is concerned that the contribution might not be used for his desired purpose. As the donor’s CPA, analyze the situation and make a recommendation as to which organization the donor should make the contribution and whether the donor’s gift should be restricted or unrestricted. Explain to the donor what kind of public information is available and whether it will assist the donor in determining whether his contribution is handled appropriately by the association. To guide your response, employ the following criteria related to critical thinking and analysis. Conceptualization – Observes and describes given information (data, ideas, or concepts) in relation to the context of question or assignment. Analysis – Examines given information in a logical and organized manner to determine how ideas are developed and interconnected. Identifies embedded hypotheses, biases, causalities, and conclusions. Synthesis – Incorporates analyses with information or evidence drawn from other resources to connect key concepts in a coherent manner as a base for further application and perspective. Conclusion – Integrates analysis and synthesis to formulate a new perspective or position that is appropriate to the conceptualization of the question or assignment.Implications – Based upon the positions, perspectives or conclusions determine practices or processes and/or the need for further study.

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