What is the primary goal of capital needs assessment?

The primary goal of a capital needs assessment is to identify capital requirements over an extended time period. This process involves analyzing and forecasting the future needs of an organization regarding capital assets, which can include infrastructure, facilities, and equipment. A comprehensive assessment allows organizations to plan effectively for capital investments, ensuring that they can meet their operational demands and address long-term strategic goals.

By taking a long-term view, a capital needs assessment helps decision-makers prioritize projects, allocate resources efficiently, and mitigate potential risks associated with aging infrastructure or insufficient capacity. This approach supports sustainable growth and ensures that funding is directed toward essential projects that align with the organization's mission and objectives.

The other options, while they touch on aspects of capital planning, do not fully encompass the primary goal of assessing capital needs over time. Short-term project identification, immediate funding strategies, and reducing existing infrastructure funding do not reflect the comprehensive and forward-looking nature of a thorough capital needs assessment.