Capital - money available for an organizations use in business transactions.
Capital projects - purchase or lease of a building; renovation (change in physical space i.e. a
building/facility) or construction project; relocation or increase in number of sites, large scale
equipment purchases (for example equipment cost exceeding $15 thousand dollars).
Dollar size of Capital projects:
Capital improvements-A facility or equipment upgrade (this does not include maintenance and repair work) - the capital improvement items must have a life span of more than one year
Dollar size of Capital improvements:
(more to come on depreciation, capitalization and Statements of Cash Flow - just too much info for now)
Capital campaign - a fund raising drive that excludes a nonprofits operating budget and is only for the
purpose of raising money for a facility or a for large scale equipment purchases - these funds can be raised to create a nonprofit endowment fund or to increase a nonprofits unrestricted reserve funds.
What is a nonprofit Endowment?
A financial asset donation made to a non-profit group or institution in the form of investment funds or other
property that has a stated purpose at the bequest of the donor. Most endowments are designed to keep the
principal amount intact while using the investment income from dividends for charitable efforts
Read more: http://www.investopedia.com/terms/e/endowment.asp#axzz1ZDqEzX2S
What are nonprofit Reserves?
The portion of unrestricted net assets that are available for use in emergencies to sustain financial operations in
the unanticipated event of significant unbudgeted increases in operating expenses and/or losses in operating revenues
Read more: http://www.nccs2.org/wiki/index.php?title=Nonprofit_Operating_Reserves
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