Budgets for Grant Proposals

1
Budgets for Grant Proposals

• ADAMH System Grants Network
• Elaine Newman, Grants Coordinator

2
The Proposal Budget

• The Budget shows how the grantors money will
  be spent to meet the identified needs and to
  achieve the stated objectives that are described
  in the proposal narrative.

3
Preparing the Budget

• The budget should detail the costs of your
  project.
• The budget should show how each cost is
  calculated.
• The budget should be for a specific period of
  time.
• Funders may specify required categories or
  formats.

4
Direct Costs

• Explicit costs for this project
• Your project budget must include only what is
  spent directly for this project.
• You must charge only for the percentage of time
  or equipment that is being used for this project.
• Separate line items
• Itemize, dont just use category totals unless
  required by funder.
• Do not include a miscellaneous line
• Even if an other line is included, use it only
  for small amounts that really cant fit elsewhere.

5
Line items to consider

• Personnel
• Equipment
• Supplies
• Travel
• Evaluation
• Training
• Capital renovations
• Knowledge dissemination
• Dont forget related costs
• Ex
• Copier toner, paper, maintenance
• Computer printer, software, IT
• Telephone equipment, service contract

6
Indirect Costs

• Operating or administrative
• costs not particular to this
• program

7
Indirect Costs

• May include accounting, supervision,
  maintenance, utilities, HR, grants management.
• Funders usually specify if indirect costs are
  allowable, and at what rate.
• Sometimes Indirect Costs can be itemized and put
  into Direct Costs.
• Federal government usually requires an
  established negotiated rate.
• This process is fairly extensive.
• Negotiating an indirect cost rate is probably
  worthwhile if you have 3 or more federal grants.
• Once negotiated, it is used for all federal
  agencies.

8
Income

• List all sources of revenue
• for this project, not just the
• grant request.

9
Income

• May include other foundations, donations,
  government, United Way, fees for service, revenue
  generating activities.
• Show everyone you have applied to. Indicate if
  funds are committed or pending.
• Indicate if cash or in-kind.

10
Match Requirement

• Determine if the funder requires a match, or cost
  sharing, and how much.
• Determine if it must be cash or in-kind.
• Determine what is allowable as match.
• Federal grants cannot be matched by federal
  funds, even if they have passed through state or
  local governments.

11
Match Requirement

• Government funders are more likely than private
  to require match.
• Even when not required, including a match can
  indicate commitment on the part of your agency or
  community.
• Only include match you are committed to spending
  - You will be obliged to spend whatever you
  include.

12
Challenge Grants

• Incentive Challenge grants act as an incentive
  for others to give.
• Only for new funds. Challenge grants will only be
  awarded if matching funds are collected.
• Show in budget as pending.
• Challenge grants are often given as part of a
  capital campaign.

13
Balance the Budget!

• Income must equal expenses.
• Make sure everything adds up correctly. If you
  change figures in one place, be sure to change
  them in others.
• Budget must support the narrative, and have the
  same numbers as the budget justification.
• Must be an appropriate amount to support the
  activities described and must be for expenses
  that support the activities described.

14
Budget Narrative/Justification

• The narrative accompanies the budget, it does not
  replace it.
• Describes what is being purchased, who will use
  it, why, and how it contributes to the project
  objectives.
• The narrative shows how the cost was calculated.

15
Budget Narrative/Justification Example 1

• Personnel
• Name
• Title
• Percentage of time dedicated to this project
• Salary
• Responsibilities
• Benefits should be broken down.

16
Budget Narrative/JustificationExample 2

• Equipment
• Type of equipment
• Number of items
• Cost per unit
• Who it will be used by
• When and where it will be used
• Which objective and activity the equipment will
  support

17
Cost Per Unit Served

• Calculate Cost per unit by totaling all the costs
  of the project and dividing by the number of
  individuals served, or number of units of service
  provided.
• Funder may request this and may specify how it is
  to be calculated. This is a good check on whether
  or not your program is efficient and your costs
  are appropriate.

18
Multi-Year Applications

• The Funder may require
• that you include a separate
• Budget and Budget
• Justification for each year
• of the grant.

19
Multi-Year Applications

• Remove costs for one-time purchases from
  subsequent year budgets.
• Include increases in salary and benefits for cost
  of living, rent increases, increases in equipment
  maintenance contracts, etc. in subsequent year
  budgets
• If objectives show an increase in service or
  number of individuals served, that should be
  reflected in subsequent year budgets.

20
Example 3 Benefits (Section 3 Item 27 USDOJ)
21
Example 4 Salaries and Personnel/Fringe Benefits

• Fringe benefits for outreach worker based on
  salary of 23,799
• PERS _at_ 13.55 x 23,799 3,225
• Medicare _at_1.45 x 23,799 345
• Medical, drug, dental, MH/CD, vision, life
  insurance for 4 months 3,792.
• Total 7,362

22
Example 5 Travel Narrative

• Local travel - mileage reimbursement for outreach
  worker travel to homeless shelters, mental health
  agencies, home visits
• 3500 miles _at_ 0.30 per mile 1050
• Conference travel 3 people to attend 2 required
  grantee meetings per year
• Airfare _at_ 350
• Hotel _at_ 80/day x 2 days 160
• Food _at_ 45/day x 2 days 90
• Ground transportation _at_ 50 per person
• Total per person 650
• 3 people x 650 1950 per trip
• 2 trips x 1950 3900
• Total Travel
• 1050 3900 4950

23
Example 6 Worksheet for Multiple Partners
24
Helpful Tips

• The budget is important!
• Address the budget early in the program
  development process.
• Dont overlook associated costs.
• Make the budget realistic.
• Have someone else review the budget.
• If you still have questions about allowable costs
  or format ask the funder.

25

• I continue to be amazed at the
• number of nonprofit organizations
• that approach budget development
• as a magic trick. Staff randomly
• pull numbers out of thin air and
• complete the illusion with a
• creative budget narrative that
• attempts to justify numbers without
• factual basis. As a proposal
• reviewer, I can assure you the trick
• is not new or effective. In other
• words, we dont believe the rabbit
• was ever in the hat.
• Budgets - Establishing a Cost Per Employee
  Formula By Julie Seewald Bornhoeft