Government Grant Proposal Budget: Planning the Budget

Government Grants Funding levels in Federal support programs transform every year. It is helpful to have another look at the appropriations over the past years to make an effort to project upcoming funding levels (see Financial Information section of the catalogue program description).

However, it is safer to never expect that the income from the government grant will be the one and only hold up for the project. This concern should be given to the general budget needs, and in particular, to budget line objects most matter to inflationary pressures. Restraint is essential in influential inflationary cost projections (avoid stuffing budget line objects), but try to anticipate potential future increases.

The most vulnerable budget areas are: rental of buildings and equipment, utilities, telephones, salary increases, food, transportation, and insurance.

After the grant award it will be harder to get budget adjustments, it may take a long period of time. Make sure that execution, maintenance and phase-down costs can be met. Think about costs related with evaluation systems, leases, soft/hard match requirements, development, audits, implementation and maintenance of accounting and information systems; think about other long-term financial commitments related to your project.

If your budget is properly prepared and is consistent with the proposal narrative it will justify all expenses.

Some areas reliant on an evaluation for consistency are:
1. The Salaries in the proposal in relation to those of your organization should be analogous.
2. If your organization plans to employ new staff persons, consider additional space and equipment.
3. Before investing part of the budget for an equipment purchase, make sure it is the type of equipment allowed by the grantor agency;
4. If a rent of an additional space is considered, make sure the increase in insurance is supported.
5. If indirect cost rate applies to the proposal, the division between direct and indirect costs should not be in conflict, and the aggregate budget totals should refer directly to the approved formula.
6. If matching costs are required, the contributions to the matching fund should be taken out of the budget unless otherwise specified in the application instructions.

Learn in depth about government-wide requirements.