Capital-Equipment Budgeting

Capital-equipment budgeting is typically related to the expansion of current services. This type of budget must be justified and requires a viability or return on investment analysis. Evaluate the advantages and disadvantages of financing options (e.g., mortgages and loans; lines of credit, leases; bond financing) for a specified capital improvement or equipment project.



1. Textbook:
Dropkin, M., Halpin, J., & LaTouche, B. (2007). The budget-building book for nonprofits (2nd ed.). Jossey-Bass.
Chapter 16: Allocating Administrative, Overhead, and Shared Costs
Chapter 17: Revising Draft Operating Budgets
Chapter 18: Zero-Based Budgeting (ZBB)
Chapter 19: Capital Budgeting

2. Video:
Rae, W, [ehowfinance]. (2009, February 6). Making a Budget: How to Create a 0-Based Budget [Video File]. Retrieved from (Links to an external site.)

Recommended Readings

1. Websites:
SAMHSA. (n.d.) Grants. Substance Abuse and Mental Health Services Administration. Retrieved from (Links to an external site.)

National Institute of Health (NIH). (2015). Grants and funding: NIH’s central resource for grants and funding information. National Institute of Health (NIH). Retrieved from

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