Which type of grant always qualifies as program revenue?

Reimbursement grants are specific types of funding provided to organizations that cover expenditures already incurred in carrying out approved programs or services. This means that when an entity receives a reimbursement grant, it is directly tied to the costs of delivering specific programs. Consequently, these grants are classified as program revenue because they are intended to support and sustain the designated activities of the organization.

In contrast, dedicated taxes are revenues collected through specific taxes that may fund various programs but do not directly reimburse costs already incurred. Multipurpose grants typically provide funding that can be used across several initiatives, which may not necessarily align with the definition of program revenue since they are not earmarked for specific expenses. Earnings on investments, while potentially contributing to an organization’s overall financial health, do not relate to the direct provision of programs and thus do not qualify as program revenue either.

The nature of reimbursement grants is inherently tied to the concept of program revenue, making this the correct choice in this context.