Page 16 - Finances for Non-Finance People

TYPES OF BUDGETS

• Capital Budget: A capital budget outlines the expected expenses for major capital

expenditures, such as building renovations, equipment purchases, or major

technology upgrades.

• Cash Flow Budget: A cash flow budget helps nonprofits manage their cash flow by

projecting the timing of expected revenues and expenses. This budget can help

organizations avoid cash shortages and ensure that they have the necessary funds

to meet their financial obligations.

• Zero-Based Budget: A zero-based budget requires nonprofits to justify every

expense, starting from zero. This budgeting approach can be useful in identifying

areas of inefficiencies and reallocating resources to where they are needed most.