How do I write a grant budget?
What to Include
Typical budget categories include personnel, fringe benefits, travel, equipment, supplies, contractual, and indirect costs. Some funders allow indirect costs (overhead) at a set rate; others cap or disallow them.
For each line item, provide a brief description and the math behind the number. For example, 'Project Coordinator: 0.5 FTE x $50,000 = $25,000.'
If you have other funding sources, list them as revenue. Show the total project cost and the amount requested from this funder.
- Personnel: salaries and wages for staff working on the project.
- Fringe benefits: health insurance, retirement, etc., often as a percentage.
- Travel: mileage, airfare, lodging, per diem.
- Equipment: items over a certain cost (e.g., $5,000) that last more than a year.
- Supplies: consumables like office supplies or program materials.
- Contractual: consultants or subawards.
- Indirect costs: administrative overhead, if allowed.
How to Calculate and Present
Use a spreadsheet to calculate totals and check for errors. Round to the nearest dollar. Make sure the budget narrative explains each cost and why it's necessary.
Align the budget with your project timeline. For example, if a staff member starts in month three, only budget for nine months of salary.
Check the funder's rules on allowable costs. Some won't pay for food, lobbying, or capital expenses. If you're unsure, ask the program officer.
Common Pitfalls
Budgets that are too high or too low can raise red flags. Research typical costs in your area. For individuals, include only direct costs related to your need.
If you're a nonprofit, include a sustainability plan if the grant is for a new project. Funders want to know what happens after the grant ends.
Common mistakes
- Forgetting to include indirect costs or including them when not allowed.
- Not matching the budget to the proposal narrative.
- Using vague line items like 'miscellaneous' without explanation.
