An example of an increase in net assets that would be labeled revenue rather than support is:

• A. Donor restricted capital grant
• B. Unrestricted donor contribution
• C. Endowment payout for outreach
• D. Investment income

Answer: (D)

In nonprofit financial reporting, revenue comes from the organization’s ongoing activities or investments, while support comes from external gifts or grants that are not earned through operations. Investment income fits the revenue category because it represents earnings on assets the organization already owns, not a transfer of wealth from a donor for a specific purpose. This earnings increases net assets as revenue rather than as a gift or grant.

The other inflows are gifts or grants from donors. A donor-restricted capital grant is a contribution with donor-imposed restrictions, so it’s recorded as support. An unrestricted donor contribution is also support. Endowment payout is related to the organization’s invested assets and is treated as investment income (revenue) rather than a direct gift, which is why the clear example of revenue here is investment income.