Writing the Budget for a Grant Proposal

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Writing the Budget for a Grant Proposal

  1. 1. Grants 101 Writing the Budget Presented by Dierdre McKee
  2. 2. The Budget … <ul><li>… .is the financial expression of your project </li></ul>
  3. 3. Purpose of the Budget <ul><li>Demonstrates how much the project will cost </li></ul><ul><li>Shows funders exactly what they will support/where their money will go </li></ul><ul><li>Serves as a plan for how your organization will operate the project </li></ul><ul><li>Serves as the basis for the end-of-grant report </li></ul>
  4. 4. The True Test <ul><li>If someone cannot understand </li></ul><ul><li>your project from reading your </li></ul><ul><li>budget, it still needs work! </li></ul>
  5. 5. Budget Basics <ul><li>Budgets must include dollars for all phases of a program: </li></ul><ul><ul><li>Program Planning/Development </li></ul></ul><ul><ul><li>Program Implementation </li></ul></ul><ul><ul><li>Program Evaluation </li></ul></ul><ul><li>Budgets will include dollars for </li></ul><ul><ul><li>People </li></ul></ul><ul><ul><li>Places </li></ul></ul><ul><ul><li>Things </li></ul></ul>
  6. 6. Categories of Program Expenses <ul><li>Start- up Costs vs. Operating Costs </li></ul><ul><ul><li>Cost of planning and developing methods, materials and tools for a new program. </li></ul></ul><ul><ul><li>Cost of delivery and evaluating the program. </li></ul></ul>
  7. 7. Categories of Program Expenses <ul><li>Direct Costs vs. Indirect Costs </li></ul><ul><ul><li>Costs specifically related to running the project. </li></ul></ul><ul><ul><li>Costs not directly attributable to the project but can be allocated to it based on the notion that the project should bear some of the costs of the host organization. </li></ul></ul>
  8. 8. Direct and Indirect
  9. 9. Direct Costs: Staff <ul><li>Staff Needs </li></ul><ul><li>Cost of Personnel </li></ul><ul><ul><li>Time (full time vs. percentage of effort) </li></ul></ul><ul><ul><li>Benefits </li></ul></ul>
  10. 10. Direct Costs: Program Expenses <ul><li>Rent/Mortgage </li></ul><ul><li>Equipment/Hardware </li></ul><ul><li>Software </li></ul><ul><li>Supplies </li></ul><ul><li>Phone/Internet </li></ul><ul><li>Travel </li></ul><ul><li>Books, Subscriptions, Articles </li></ul><ul><li>Insurance </li></ul>
  11. 11. Indirect Costs <ul><li>Cost of housing the program </li></ul><ul><li>Services covered by other divisions or departments of the organizations </li></ul><ul><li>Funders may provide a cap for indirect costs (i.e. 10% of total budget) </li></ul><ul><li>Organizations sometimes have an established rate for indirect cost </li></ul>
  12. 12. Budget Planning <ul><li>Determine project </li></ul><ul><li>Establish project period </li></ul><ul><li>Determine expenses--Personnel, Travel, Equipment, etc. </li></ul><ul><li>Determine indirect costs </li></ul><ul><li>Determine value of donated goods and services based on real costs and valid sources </li></ul>
  13. 13. More Budget Planning <ul><li>May require meetings and much back and forth </li></ul><ul><li>May require getting estimates from vendors </li></ul><ul><li>May require reviewing reports of past years’ expenses </li></ul><ul><li>Takes time! </li></ul>
  14. 14. Budget Justification <ul><li>Explains costs for each person or tasks to be undertaken during program development and delivery </li></ul><ul><li>Provides a rationale to the funder that the allocations are warranted and that the program will be afforded over time </li></ul><ul><li>Serves as documentation of how you arrived at cost </li></ul>
  15. 15. Tips <ul><li>Program Narrative and Budget MUST be consistent </li></ul><ul><li>Be responsive to Request for Proposal or funders’ directions </li></ul><ul><li>Don’t wait until the last minute </li></ul>
  16. 16. More Tips <ul><li>NO mistakes! (at least 2 proofers) </li></ul><ul><li>Consistent format – numbers, dollar signs, decimals, commas </li></ul><ul><li>Clearly justify your figures with real bids/estimates from vendors, real travel locations, real mileage, and real salaries </li></ul>
  17. 17. Thank you! To learn more about the grant seeking process, view my other slidecasts, Introduction to Fundraising and Grants, Elements of a Proposal, and Logic Models

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