Budget Information

The budget should be reasonable and consistent with your needs.  It should also show how the grantor’s money will be spent on the needs outlined in the objectives statement. 

You must detail the costs of your project. 

A balanced budget is a must!  If you underestimate your budget, this will indicate that you don’t understand your project.  On the other hand, don’t pad your budget, as this will indicate you are trying to get more than you really need. 

Purpose of the Budget:

Shows entire cost of the project

Shows costs of all line items and supplementary items

Shows project costs that will be met by the grantor

Shows project costs that will be met by sources other than the grantor 

Project Costs should be:

Justified in the proposal narrative

Directly linked to benefits for the target group

Reasonable

Allocable   Based on prudent decisions

Necessary for carrying out the proposal

Consistent with established institutional policies

Required and lawful

Allowable:

Reasonable in the context of the project

Allocable to the project in accordance with cost principles

Conforming to limitations defined in the grant guidelines

Conforming to limitations defined by law

Appropriate to the project

Don’t inflate

Don’t underestimate 

Budget Vocabulary 

            Direct costs are line items (explicit project costs): personnel and the things they will use to carry out the project.  Personnel costs can include salaries, benefits and consultant’s fees.  Other direct costs can be equipment, supplies, travel and publication expenses.  Each cost is listed on a separate line in your budget. 

Line item costs linked directly with carrying out the project

Salaries and fringe benefits of technical staff

Equipment/supplies

Phone toll charges

Computer costs

Travel costs

Costs of animal/human subjects and their care 

            Indirect costs (also known as facilities & administrative costs) are operating costs or administrative costs not specifically listed in your budget as line items but are real costs in your project.  Time spent processing a payroll or time spend planning and brainstorming on your project are examples of indirect costs. 

Institutional overhead costs

Costs to your school associated with supporting or carrying out your grant

Indirect cost rates are percent of total direct costs

That percent is negotiated by the Texas A&M System with the Federal Government

Common indirect costs

Cost sharing (matching funds)

Funds contributed by the institution to the project

The grantor may require a fixed percent of cost sharing

Money:  the institution contributes a percent of cash funds

In-kind:  non-cash contributions such as volunteered staff time, donated

lab/classroom/library access, etc. 

Budget justification

The budget narrative explains budget items in further detail

All budget items are accounted for in the proposal narrative

A direct correlation between budget items and project success is shown

The nature of every cost item is explained

All necessary approvals are shown

For more information:

Preparing a Grant Budget

NSF - Budget Guidelines http://www.nsf.gov/pubs/2004/nsf042/2.htm#IIC2g
National Science Foundation Guideline http://www.nsf.gov/home/grants/grants_prep.htm

Office of Management & Budget -
http://www.whitehouse.gov/OMB/grants/index.html

Department of Education http://www.ed.gov/admins/grants/apply/techassist/resource_pg8.html