In recent times, knowledge has become a resource with which organizations including business enterprises achieve their aims and objectives. Knowledge management is an emerging phenomenon in service and profit-oriented organizations. The survival of organizations in the 21st century's competitive business environment has been hinged on effective and efficient knowledge management practices. One critical success factor in knowledge management is budgeting. This paper discusses the processes involved in budgeting for knowledge management in organizations. It also highlights the important role of proper budgeting and identifies the sources and constraints of budget funding in organizations.