Discuss the difference between Federal, State, Local and Nonprofit Budgeting. Based on your readings, do you prefer one funding stream over another? Why or why not?

Discuss the difference between Federal, State, Local and Nonprofit Budgeting. Based on your readings, do you prefer one funding stream over another? Why or why not?

\”Nonprofit organizations, which number in the hundreds of thousands differ from the governments in that they lack the power of taxation and focus more narrowly. Nonprofit budgeting is generally characterized by small size, responsiveness to economic conditions, diverse compositions of revenues and expenditures, and relatively simple budgeting arrangements. Nonprofit organizations are based on a geographical locality and some other attributes. They also respond to the specific economic conditions of their revenue services. Most nonprofit revenues are fees for services rather than donations (Swain & Reed, 2010, pg. 9). Nonprofit organization mostly spend on input factors to provide services. Nonprofit budgeting is even simpler than governmental budgeting because of fewer restraints and more directness. They adjust their budgets as conditions change (Swain & Reed, 2010, pg. 10).

The United States government is the largest financial entity in the world; it spends more than it collects. Most federal expenditures differ because there are programs and policies designed to shape behavior by transferring money, although many programs and policies operate based on purchasing things, with defense being the largest example. (Swain & Reed, 2010, pg. 10). The federal government deals with a wide variety of complex substantive areas, such as environmental regulations, Medicare, and a variety of resource programs; it also deals with situations that involve singular events, such as war, and economic events (Swain & Reed, 2010, pg. 11).

State budgets are large, in the range of business and foreign governments. States do not routinely run large deficits; they respond to economic conditions and maintain budgets that are mostly balanced. They rely on a variety of revenue streams, mostly income and composition taxes federal aid, and fees (Swain & Reed, 2010, p. 11). States spend resources primarily for traditional services within the realm of police powers; that is, actions for the sake of public welfare, health, safety, and morals. States also transfer less money of their budget than the federal government. State also has a smaller budget for routine programs which have better control (Swain & Reed, 2010, pg. 12).

Local governments budgets differ from state and federal in respect to size, responsiveness to economic conditions, composition of revenues and expenditures, and complexity. Local budgets are smaller. They are often referred as subdivisions of states, and only expressly delegated powers, including revenue collection powers (Swain & Reed, 2010, pg. 12). Local governments spend primarily on input factors to provide services; some small governments may budget only because of state requirements (Swain & Reed, 2010, pg. 13).

I really do not prefer one over the other because I feel they all have a purpose. I do like the nonprofit organizations because as I stated earlier, they spend on factors to provide services even though some rely on fees. I prefer this because it is simpler than the governmental budgeting; less constraints, and more directness in dealing with changes.\”

After reading this, can you respond, in 50 words or greater to this person\’s paper. Thank you.