Not for profit entities are the capital budgeting

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is able to examine how much they are spending each month and saving. Not for Profit Entities: Are the capital budgeting criteria discussed in the chapter applicable to not for profit corporations or the government? How so? The criteria for capital budgeting, as outlined by Ross, Westerfield, and Jordan (2016), apply to not-for-profit organizations While an organization’s operating budget reflects it planned financial activities for a year, showing how much revenue it expects from which sources and how it will spend on operations, a capital budget, or capitalization plan, relates more to an organization’s financial position (Foley, 2010). Additionally, Foley (2010) mentions that a not-for profit organization’s capital budget may require a funding plan that includes a capital campaign, as well as, other funding strategies. These plans would be separate from the operating budget. References Gad, S. (2012, November 15), Capital Budgeting: The Importance Of Capital Budgeting.” Investopedia , retrieved on April 5, 2018 via Foley, E. H. (2010, July 28). Budgeting for capital. Non-Profit Accounting Basics . Retrieved April 5, 2018, from Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2016). Fundamentals of corporate finance (11th ed.). New York, NY: McGraw-Hill

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