Capital fund is a term used to describe the excess of assets over liabilities for a not-for-profit organization (NPO) . It is also known as accumulated fund. Any surplus or deficit ascertained from the income and expenditure account is added to or deducted from the capital fund. The calculation of capital fund for an NPO can be done using the following formula:

Capital Fund at the beginning of the year

• Surplus from Income and Expenditure Account
• Subscription Amount (Capitalized amount)
• Life membership fee

• Deficit from Income and Expenditure Account = Capital Fund at the end of the year

On the other hand, capital funding refers to the money that lenders and equity holders provide to a business for daily and long-term needs. It consists of both debt (bonds) and equity (stock) . Companies usually raise funds through capital funding programs to acquire capital or fixed assets such as land, buildings, and machinery. There are two primary routes a business can take to access funding: raising capital through stock issuance and raising capital through debt.

The cost of capital funding is usually analyzed by companies to determine the average cost of capital. The weighted average cost of capital (WACC) is calculated by weighting each cost of capital funding. The WACC can be compared to the return on invested capital (ROIC) to determine if the company will move forward with its capital funding plan or re-evaluate its strategy.