Capital Projects
This term refers to long-term funding used to invest in major organizational assets like facilities.
What is capital?
Equity financing represents this type of organizational stake.
What is ownership?
Municipal bonds are issued by these two types of government entities.
What are state and local governments?
This budgeting method adjusts last year’s budget up or down slightly.
What is incremental budgeting?
Charity athletic events rely on participants who often have this tie to the cause.
What is a personal connection?
This key characteristic of capital projects explains why they require careful long‑term planning, since they demand substantial upfront costs but generate returns over many years.
What is their long-term investment horizon?
This equity option reinvests profits instead of distributing them to shareholders.
What are retained earnings?
This type of bond is backed by the full taxing power and “full faith and credit” of the issuing government.
What is a general obligation bond?
Unlike incremental budgeting, zero-based budgeting is known for eliminating this.
What is waste (or inefficiency)?
This type of interest motivates participants in events like runs, swims, or rides.
What is athletic enthusiasm?
Name one major upfront cost typically associated with capital projects.
What is land, construction, design, or infrastructure?
Borrowing funds that must be repaid with interest is known as this.
What is debt financing?
These bonds are repaid exclusively using income generated by the facility itself.
What are revenue bonds?
A downside of zero-based budgeting is that it tends to be what?
What is time-consuming or resource-intensive?
In charity athletic events, participants raise money through this type of fundraising.
What is peer-to-peer fundraising?
This financial tool determines whether a capital project should be approved by comparing expected inflows and outflows.
What is present value analysis?
Name one advantage of using debt financing instead of equity.
What is preserving ownership/control?
Special tax bonds often use revenue from these taxes, such as hotel beds or rental cars.
What are designated local taxes?
A benefit of incremental budgeting is that it minimizes this within organizations.
What is internal conflict?
Nonprofits play this role in charity athletic events, managing logistics, permits, and safety.
What is the event organizer or producer?
Nonprofits must consider these factors—beyond financial returns—when approving capital projects.
What are mission alignment, community impact, and stakeholder interests?
These contributions, common for nonprofits, involve philanthropic support from individuals or foundations.
What are gifts and donations?
Name one reason investors find municipal bonds especially attractive.
What is their tax-exempt interest?
This is required for both incremental and zero-based budgeting.
What is alignment with the organization’s strategic plan?
Some charity athletic events require these participant commitments that can exceed $1,000.
What are fundraising minimums?