Budget and Budget Narrative/Justification

by Cynthia M. Adams, CEO, GrantStation.com

Most grantmakers will want to see two budgets: one for the proposed project and your organization’s annual operating budget. In this article, we'll assume you already have an annual operating budget and concentrate on how to develop the project budget.

The project budget should clearly indicate both expenses and revenue. Our Budget Worksheet (Word), will be a great help when developing your project budget.

Start preparing your project budget by taking an imaginary shopping trip: purchase whatever you need for this project and don't tie your hands by thinking too small. Have fun as you consider the possibilities.

Make a list and don’t forget to include salaries, consultant fees, office space, postage, travel, supplies, insurance, printing, and publicity. For instance, will you need to install a new phone line or lease equipment? Include administrative fees (indirect rate), usually 10-18% of the project budget. Keep this list for reference as you build the budget.

You won’t think of...