Budget Basics to Remember
One of the first areas of your grant application that a funder may review is that of the Budget. Funders will do this to make sure your proposed budget meets their criteria. They will be looking at alignment, evidence of need and whether the budget is realistic to your project and their pocketbook.
Be as specific as possible when developing your budget. Categorize expenses with detailed line items. An explanation should accompany all listed expenses. Your budget should show alignment between your spreadsheet and your narrative for revenue and expenses. Most importantly, the budget should demonstrate alignment with the funder’s priorities and proposal goals.
Common budgets for grants include operating budgets, program/project budgets, capital budgets, research budgets, and multi-year budgets. Grant budgets will look different depending on what they’re for while there also are expected requirements.
Each budget will include direct costs, those expenses related to the project or program being funded, as well as indirect costs that go along with running an organization.
Include in your budget a buffer for unexpected costs or contingency funds with an explanation of how and when the contingency funds will be used.
Define all contributions including in-kind contributions, matching funds and volunteer hours by listing the source and description.
In creating your budget, select column headers that match the specific requirements of each funder. Don't use a cut-and-paste approach.
Address sustainability by anticipating future funding needs after the grant period ends. Funders want to support initiatives that will continue to thrive in the future. Explain how your organization intends to sustain the project or program by detailing other fundraising efforts or future plans for additional grants.
Verify all calculations before submitting. Budget errors can weaken your credibility and application.
