Budgeting in not-for-profit organizations
A) is not important because they are not profit-oriented.
B) usually starts with budgeting expenditures rather than receipts.
C) is necessary only if some product is produced and sold.
D) consists entirely of budgeted contributions.

Question

Quizplus · Accepted Answer

Not-for-profit organizations still need to plan and manage their finances effectively, even though they are not profit-oriented. Budgeting in these organizations typically begins with estimating the expenses rather than income as the main goal is to ensure that the available resources are being used efficiently to achieve the organization's purpose. The budget may also include projected contributions or grants. The production and sale of product is not necessarily relevant in not-for-profit organizations, which can have a wide range of activities beyond just selling a product.

Budgeting in Not-For-Profit Organizations