Variance power definition
/What is Variance Power?
Variance power is the power to redirect the use of transferred assets to a different beneficiary. The donor of an asset grants variance power to the recipient by making a variance power statement in the documentation authorizing the asset donation. In this situation, the pass-through organization can record the donation as revenue and the subsequent forwarding of funds to the third party as an expense. This should result in a net reported profit of zero for the pass-through organization.