Your initial post should be at least 80 words on each discussion ✓ Solved

Your initial post should be at least 80 words on each discussion post and credibly supported by at least one brief cited and referenced current scholarly source no more than 7 years old. The post should focus on current realities. APA format, and references.

Forum 1: Zero-based budgeting is great for nonprofit organizations. You must start a zero-based budget with zero and some say using this method takes courage. You must justify and analyze each cycle. Budgets are then built around it. There are some pros and cons with Zero-Based Budgeting. Some of the cons are that there may be changes due to this method and sometimes people just don’t take ease to changes. More disadvantages are the fact that it takes a lot of resources and time making it more complex.

Some advantages of zero-based budgeting are cost-efficient and very flexible. According to the five questions in our text and dealing with the mental health population, I would say a zero-based budget a given program activity should be allowed to continue. I say it should only be modified to improve something or make an adjustment for the better somehow. It should be only modified by the organization. I say a budget and limit should be already created on how much they should spend on the project.

If they stay within the budget and boundaries it should be alright to spend on the project. Yes, the proposed change or any changes should have approval from within the organization and shouldn’t be a waste of time. Studies showed within the past fifty years the zero-based budget began to be a more popular choice for the Governments to control costs from going too high.

I can see how zero-based budgeting a challenge can be when estimating needs for mental health care. With the zero-based budget, you must be willing and prepared for justifying the economic benefits of services. With zero-based budgeting ZZB, you must also justify every expense before adding it in and that’s not only very detailed and time-consuming, but you must decide if it's worth the trouble. References.

Paper For Above Instructions

Zero-based budgeting (ZBB) has emerged as a powerful financial management tool, particularly within nonprofit organizations. This budgeting approach begins with a base budget of zero, requiring every function to be analyzed for its needs and costs, creating a roadmap for budgeting that necessitates a justification of all expenses. This method not only enables organizations to allocate resources more effectively but also encourages operational efficiency (Ibrahim, 2019). While ZBB can present challenges, especially with staff resistance to change and the significant time commitment required to justify expenditures, its advantages, such as cost-efficiency and flexibility, can greatly benefit nonprofits facing budgetary constraints (Lihtin & Kutergina, 2018).

In implementing a zero-based budget, nonprofits must prepare to address the complexity that comes with this approach. One significant advantage of ZBB is that it facilitates a more agile response to changing situations, allowing organizations to adapt to shifting needs within their communities effectively. For example, in mental health care, ZBB can highlight areas needing more funding based on direct feedback from service delivery (Alekseevich Likhtin & Kutergina, 2018). Furthermore, the method compels organizations to rigorously evaluate program performance, facilitating strategic resource allocation. A well-constructed ZBB places a heavy emphasis on clear goal-setting and performance measurement, ensuring that every dollar spent aligns with the organization's mission and helps achieve desired outcomes.

Despite its merits, criticism of zero-based budgeting primarily revolves around its labor-intensive nature. The extensive justification process can be daunting, leading to potential burnout among employees. Moreover, the initial transition to this budgeting model can face resistance from staff accustomed to traditional incremental budgeting methods (Ibrahim, 2019). Organizations must invest in training and communication strategies to foster understanding and acceptance of ZBB, emphasizing the long-term benefits over short-term challenges. Establishing a strong organizational culture that embraces change and focuses on results can help mitigate these challenges.

In conclusion, zero-based budgeting presents an innovative approach to financial management in nonprofit organizations. While the transition may be complex and time-consuming, the long-term benefits of resource optimization and performance accountability can significantly enhance an organization's financial health and mission effectiveness (Mukdad Ibrahim, 2019; Alekseevich Likhtin & Kutergina, 2018). As nonprofits navigate budgetary pressures, ZBB stands out as an advantageous strategy that can lead to more informed and impactful financial decision-making.

References

• Alekseevich Likhtin, A., & Kutergina, E. A. (2018). Zero-Based Budgeting as the Method of Public Programming: Application Possibility in the Modern Social and Economic Conditions. Управленческое Консультирование, 10, 73–82.
• Ibrahim, M. (2019). Designing zero-based budgeting for public organizations. Problems and Perspectives in Management, 17(2), 323–333.
• Dropkin, M., Halpin, J., & LaTouche, B. (2007). The budget-building book for nonprofits (2nd ed.). Jossey-Bass.
• Emanuel, E. J. (2018). The real cost of the US health care system. Jama.
• Ewbank, L., Omojomolo, D., Sullivan, K., & McKenna, H. (2018). The rising cost of medicines to the NHS. The Kings Fund.
• Jermias, J., & Hu, B. (2020). Overconfidence and Resistance to Abandoning Unprofitable Capital Budgeting Projects: The Effects of Autonomy, Internal Audit, and Accountability.
• Lewiecki, E. M., Ortendahl, J. D., Vanderpuye-Orgle, J., Grauer, A., Arellano, J., Lemay, J., ... & Singer, A. J. (2019). Healthcare policy changes in osteoporosis can improve outcomes and reduce costs in the United States. JBMR plus, 3(9), e10192.
• Burgos, J. A. M., Kittler, M., & Walsh, M. (2020). Bounded rationality, capital budgeting decisions and small business. Qualitative Research in Accounting & Management.
• Lima, A. C., da Silveira, J. A. G., Matos, F. R. N., & Xavier, A. M. (2017). A qualitative analysis of capital budgeting in cotton ginning plants. Qualitative Research in Accounting & Management.