Which of the following actions is part of the 7 Steps for Effective CIP?

Assessing funding sources is a crucial action in the 7 Steps for an Effective Capital Improvement Plan (CIP) because it provides a framework for identifying the financial resources available to support planned capital projects. This involves evaluating various potential funding options, such as grants, loans, and local revenue sources, to ensure that projects can be financed sustainably. Understanding the funding landscape helps prioritize projects based on available resources, align capital programming with financial realities, and avoid initiating projects that cannot be financially supported.

This step is essential for ensuring that the CIP is not only visionary and ambitious but also grounded in realistic and feasible financial planning. By clearly identifying where the funds will come from, organizations can better plan their capital investments and mitigate the risk of funding shortfalls. Other actions, while they may be relevant to budget planning or project evaluation, do not directly address the fundamental need to ensure adequate and appropriate funding for capital projects.