Strategies for Preparing a Budget

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Strategies for Preparing a Budget

• Barbara A. Howell, M.A.
• University of Central Florida
• College of Health and Public Affairs

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Elements of a proposal

• 1. Proposal Summary
• 2. Problem (or needs) statement
• 3. Project objectives
• 4. Project methodology
• 5. Project evaluation
• 6. Budget
• 7. Supporting materials

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The Budget is a Plan

• The budget translates the methods section of the
  proposal into dollars and shows specifically what
  is needed to implement the plan that has been
  described earlier in the proposal.
• THE BUDGET SECTION SHOULD BE ABLE TO STAND ALONE.
  

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• Use the format prescribed by the grantor.
• Provide comprehensive budget information,
  ensuring that the budget matches the project
  objectives and methodology.
• Be clear about how the amount requested from the
  grantor fits into the budget
• Add a narrative to explain and justify budget
  items.
• Also consider a statement of future funding
  plans, if appropriate to the project.

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Budget Components

• Detailed proposal budget
• Summary budget
• Budget narrative

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Detailed Proposal Budget

• Establish the budget period, the length of time
  the budget covers.
• Estimate expenses, obtaining cost estimates as
  necessary.
• Decide whether and how to include overhead costs.
• Estimate donated goods and services that will be
  used.
• Estimate anticipated revenues for the project
• Check to be sure that the budget as a whole makes
  sense and conveys the right message to the funder.

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Summary Budget

• Use for multiple year grants
• Summarizes the budget by category for each year
• Presents a budget for the entire project period.

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Budget Narrative

• Explains how you arrived at the dollar amount
  requested for each item in the budget
• Be certain that the budget, budget narrative,
  project methodology/activities and objectives can
  be readily related and compared.
• Include direct and indirect (administrative)
  costs.

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Negotiating the Budget

• You asked for 100,000
• They give you 30,000.
• Now What?????

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• Revise your original budget
• Revise your methods and objectives
• Resubmit to funder for approval