During the year ended December 31, 2012, the James Community
Foundation, a private not-for-profit organization, received
the following contributed services:
I. Anderson & Anderson, attorneys-at-law, contributed their
services which involved advice related to the foundation’s
regular endowments.
II. Senior citizens participated in a telethon to raise money for
a new music building.
Which of these contributed services should be included in unrestricted
revenues, gains, and other support on James Community
Foundation’s statement of activities for the year ended December
31, 2012?

(d) Donations of services are recognized on the statement
of activities if either of the following conditions are met:
(1) the services create or enhance a nonfinancial asset, or (2) the
services require specialized skills, are provided by individuals
possessing those skills, and would typically need to be purchased
if not provided by donation. The services of Anderson and Anderson,
attorneys-at-law, clearly meet criterion 2 and should be
reported as unrestricted revenues on James’ statement of activities.
However, the services provided by the senior citizens do not
meet either criterion, and should not be reported on the foundation’s
statement of activities.