ANCHASL GRANTS WORKSHOP BUDGET PREPARATION

The budget for a project is the translation of all activities into the amounts that each will cost. This section of the proposal explains how the project will be completed in terms of resources which will be assigned to the activities.

The budget will include:

• Personnel Costs (Approximate amounts to be expended for staff and participant time)
• Travel of staff and/or participants
• Consultants
• Materials (supplies)
• Communication (telephone, mail)
• Equipment (Purchase or rental)
• Rental for space
• Other expenses.

The budget should be fully detailed with justification given for any expenditures that are not self-explanatory. It should be easily understood by all interested persons. All amounts should be estimated as closely as possible. For some items, such as an established salary amount, the figures can be very accurate. The cost of equipment or materials, consulting fees and travel can usually only be estimated. When estimating, it's wise to round the dollars up to the nearest ten and to omit cents.

Many funding agencies provide a blank form for completing all budget items. When this is the case, make copies of the original form to use as worksheets.

Budgets are divided between direct costs, indirect costs, and in-kind contributions.

Direct costs include salaries and wages for all project or program staff which will be paid by the project. This includes professional and clerical personnel, but usually does not include consultants. For all salaried persons, an additional direct cost includes fringe benefits which are a percentage of the salary (determined by the institution receiving the grant).

People who are to receive a consultant fee or an honorarium are paid specified amounts, usually per day of work and are not usually subject to fringe benefits. These fees may include honoraria paid to the advisory committee members as well as to speakers or workshop leaders.

Travel will include project staff going to other locations, the costs of consultants who live in other places and must travel to the project site(s). Travel includes both long-distance and local travel. Stipends are often calculated as a fixed per diem amount allocated for meals, lodging, and specific expenses while traveling. Mileage for travel by car would reflect the amount stipulated by the funding agency or home institution.

Equipment purchase or rental is considered a direct cost. Contracted costs (e.g., computer time, online searching, communication charges, etc.) are also direct costs.

Materials such as instructional materials and office supplies are part of the direct costs. These costs must be carefully justified.

Printing and duplication of project reports and dissemination are included in direct costs unless they are a separate line item. Reprographics (duplicating, artwork, graphics) should be included in this category.

Mailing and telephone or other communication costs are included unless the institution provides this as a part of the in-kind contribution. If necessary, rent of additional facilities or special insurance might be a direct cost.

Some proposal writers use an other category to provide a buffer for any other direct cost category but most funding agencies would question any unallocated amount.

Indirect costs, or overhead, may be assessed by the parent organization. These costs are to repay such expenditures as additional work needed in business office, administrative overload, building and facilities costs and similar expenses. They are usually expressed as a percentage of the total budget. Many funding agencies restrict the amount of overhead to be charged. In this case, grant proposal writers may have to ask their administrators for special permission to submit a project with a lower amount of overhead or none at all.

In-kind contributions include donated personnel, services, facilities, equipment, and materials. In some cases, funding agencies required matching funds or cost sharing. If this is so it is usually explained in the funding agencies' guidelines or RFP (Request for Proposal).

Office and other space, use of equipment, participation of staff members, mailing and communication costs are often shown as cost sharing items.

Future Funding

If your project is to continue after the grant fund run out, you will need to explain how it will be financed. Some possibilities are service or membership fees, support from United Way, fund-airing activities (direct mail, major campaign, endowment program), foundation or corporate grant (if initial grant was from government), product or publication sales.