1. Grant Budget Development
Elaine J. Marshall
March 21, 2017
Grant Budget Development

2. Introduction
Your budget is a financial representation of your project; there should be nothing in the budget that isn’t also explained in the narrative
The budget is a plan—it will probably change, especially if the project is multi- year. But that doesn’t mean you shouldn’t plan it carefully and make it as detailed as possible.
The best budgets result when there’s input from both the project experts AND the financial experts.
Make sure the numbers add up—you’re asking a grantor for money; you want to demonstrate to them that you’ll pay attention to the details and be careful with it.

3. Getting Started
Read the funding announcement or program guidelines carefully
Research the funding source—what have they awarded in the past?
Identify all costs that are necessary and reasonable for the project
Be as specific as possible about what the project will cost. You will often be asked to provide both a budget form and a budget narrative which explains each line item and how you arrived at the figures you’ve used.
Doing the work to make the budget detailed and accurate now will make budget management and reporting much easier later.

4. Getting Started Go-To References
Grantspace
Foundation Center
SC Association of Nonprofits: Together SC
USC’s budget preparation guide
Basic Budget Categories
Personnel and non-personnel costs
Direct and indirect
Allowable and unallowable

5. Budget Categories Personnel
Identify all those who’ll work on the project
How much of their time will be spent on this?
Do you need to hire new people?
Did you account for advertising costs? Background checks?
Search job ads and online for reasonable salary ranges
Costs include both salaries and fringe benefits
Fringe benefits are real costs. Employers must provide FICA, unemployment compensation, workers’ compensation and other costs (health insurance, bonuses, retirement) in addition to salaries.

6. Budget Categories Contractual Supplies and materials
Travel
Printing & copying
Consultants
Phone/fax
Supplies and materials
Postage
Office supplies
Educational supplies
Food
Equipment and maintenance

7. Budget Categories Other costs Indirect or overhead costs Space/rent
Utilities
Insurance
Postage
Taxes
Shipping or freight costs
Program evaluation
Indirect or overhead costs
Does your organization have a negotiated IDC rate?
Will the grantor cover these costs?

8. Sample Budget Request

9. Sample Budget Request
From:

10. Sample Budget Form
From:

11. Sample Budget Form
From:

12. Sample Budget Form

13. Sample Budget Form

16. Sample Budget Narrative
From:

17. Sample Budget Report Request

18. Sample Budget Report Request

19. Other Things to Consider
How much flexibility you have with the budget and whether you’ll need to explain and/or get permission for changes
Reporting requirements—how often and in what detail will you need to update the grantor
Whether the award is based on cost reimbursement, fixed price, or something else
Reimbursement – you get repaid for demonstrated project expenses
Fixed Price – the grantor pays you a set amount; if there’s any left at the end, you keep it; if the project costs more, you have to eat the overage
Something else – for example, you receive ½ the funds up front and the rest after your final report is submitted

20. Other Things to Consider
Should our organization have a budget committee?
It depends . . .
How long must we maintain records?
For federal grants, the standard is “three years from the date of submission of the final report” /uniform-administrative-requirements-cost-principles-and-audit- requirements-for-federal-awards#h-49
Grantspace’s very useful page on records:
Management/Accountability/record-retention

21. Questions?
Elaine J. Marshall