Developing a Project Budget

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Developing a Project Budget
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• 1. If you have developed a Concept paper, you may
  have only a general idea of what the project may
  cost.
• 2. To submit a request for a grant to Dr.
  Reichard, you must be able to give line item
  budget totals.
• 3. Use the objectives and activities developed
  for the project to guide you through your budget.

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• 4.Use a spreadsheet with key items already listed
  as typical expenses to help you avoid leaving out
  critical expenses.
• 5.Review the Meredith Grant Request Form to see
  what information is being requested.

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Direct Costs

• Costs that can be directly tied or traced to a
  project activity.
• Examples Travel to a conference, registration
  fee, lab supplies to teach a new course, software
  dedicated to a new project, salary for a person
  working only on the project, or a portion of the
  salary.

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Indirect Costs

• Those costs that are incurred for common or joint
  objectives and therefore cannot be identified
  readily and specifically with a particular
  sponsored project, program, or activity but are
  nevertheless necessary to the operations of the
  organization. For example, the costs of operating
  and maintaining facilities, depreciation, and
  administrative salaries are generally treated as
  indirect costs.2 2 HHS Transmital 94.01

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Indirect Costs

• Usually determined as a percentage of the direct
  costs or a segment of the direct costs.
• Must follow the requirements of the funder.
• Many grantors do not allow for indirect costs and
  expect the institution to absorb the cost.
• Therefore, the project could be an extra burden
  on the institution

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Indirect Costs

• Examples of indirect or overhead costs
  administrative oversight, sponsored programs
  support, secretarial support, office space,
  parking, utilities, upkeep, maintenance,
  post-award management by sponsored programs and
  accounting, purchasing, computers, software,
  computer support, payroll, library support,
  research support.

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• Include Indirect Costs if allowed
• Review your objectives for omissions
• Include all donated time, equipment, and supplies
  (In-kind contribution- soft and hard)
• Consider expenses for evaluations
• Consider expenses for publications
• Are there any revenues associated with the
  project?

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• Have several people read the project narrative
  and review the budget
• If multi-year project, show project budget by
  each year plus a summary budget

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Budget Attachments

• Proof of 501 (c) (3) nonprofit status
• Audited financial statements
• List of key officers, board members, trustees,
  and business affiliations
• Copy of organizations budget
• 990 Form
• Annual Reports
• (Include a table of contents to make finding each
  of these items easier)

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From Grant Seekers Budget Toolkit by J.A. Quick
and C.C.New (2001)
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Planning

• Integral part of any grant
• Lack of it will result in failure to acquire a
  grant
• Needed in all stages of a grant
• Good to have a visual plan such as a timeline to
  keep people on track

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Timelines

• Organizes activities
• Sets deadlines
• Keeps people on track
• Identifies limiting factors
• Various charts can be used to illustrate
• Helpful for grantors as well as grantees
• See Tips for examples

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Timelines

• Time Tables and Action Plans for simple
  projects (see http//www.mindtools.com/pages/artic
  le/newPPM_02.htm)
• Pert Charts (see http//www.mindtools.com/pages/ar
  ticle/newPPM_04.htm)
• Gantt Charts (see http//www.mindtools.com/pages/a
  rticle/newPPM_03.htm) and
• Critical Path Analysis Charts

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Sample Project

• Using the Ford Concept paper develop both a line
  project item budget and a time line for the
  project. If you know how to use a spreadsheet,
  set up the budget using the spreadsheet, using
  formulas for calculating totals.