Mary, Good afternoon Funding a program as capital and operating are two different financial approaches, each with its own effects. For example, capital funding is money used for big, long-term purchases in a program, like buildings or equipment. These items are expected to be useful for a long time and help the program. Their cost is spread out over many years, not just the year they were bought. On the other hand, operating funding is money used for the everyday running of a program. It covers regular costs like salaries, rent, and utilities. These costs are counted in full in the year they happen. Can you add a little bit more to my answer: What is the difference between funding a program as capital as opposed to operating?