Budgets. Just the word can strike fear in any grant applicant. But they don’t need to be scary! Whether you’re applying to government, corporate, or foundation grants, the following principles will apply; resources and instructions will differ.
A grant budget is critical to demonstrate feasibility. It outlines all anticipated expenses for a project and can offer the reviewer a concrete snapshot of how you’ll get from idea to action. The budget shows what expertise you’ll bring on board (personnel, trainees), how you’ll engage with community (protocol, honoraria, travel), resources you’ll access (software, equipment, venues), and how you’ll disseminate your findings (travel for conferences, publication costs, developing public material)—among many other things.
The first step is to know your overall project scope, its objectives, and anticipated outcomes. Think of the budget as your proposal expressed in numbers; both should align perfectly. Pro tip: outline your budget before writing the proposal. This may feel illogical—but trust me (and plenty of other experts).
Key questions to ask as you build your budget:
- How much money is needed to achieve my objectives?
- How much can I request to reasonably and appropriately carry out the activities/methods?
- What costs are eligible or ineligible?
Carefully assess every possibility, considering all salaries/wages, administrative costs, activities, honoraria, and travel that may be required. I typically start with the “ideal” budget, calculating every need and want. Then, with the team, we identify the non-negotiables and trim, shift, or add expenses. Be realistic and avoid inflating numbers—costs must be market value and economical. Reviewers are looking for the “appropriateness” of the budget and will flag if you’ve opted for business class over a standard fare.
Government grants will almost always supply the budget template, often in Excel format. Read the instructions carefully and follow them exactly. For online portal applications, there may be a section where you input numbers that automatically populate a template.
When allowed, include all relevant numbers and calculations in your spreadsheet to show the reviewer how you arrived at the requested number. What does this look like? Well, if you’re requesting funds for software, provide the company name, the monthly or annual subscription cost, the usage duration, and the total item cost over the span of the project.
Example: ProjScan, $13/month x 24 months x 3 users = $936
Doing this will make it easier for reviewers to re-calculate the numbers if any questions come up and/or to quickly assess how reasonable your expenses appear. Pro tip: Specificity beats estimates. Rounding up to the nearest hundred or thousand may suggest that you’re taking a shortcut and haven’t considered your project in detail.
If you have project partners and collaborators who will cover some of the costs for the project, then make sure that’s noted in the budget. In-kind contributions could include event/venue/lab space, personnel, professional services, or communications. Remember to review eligible and ineligible costs outlined in the application instructions to ensure feasibility and compliance.
Resources, Resources
If you feel stuck on how to get started, look for sample templates online to spark ideas. Many toolkits exist for non-profits, and most post-secondary institutions provide budget development guidelines. These can be invaluable to you and your team as you begin drafting. The funder may also provide examples (online or by request) for your reference.
You can consult HR advisors or your research administration team to help cost out personnel (students, trainees, project employees), and there are even online calculators to determine how much to set aside for benefits. Administrators and/or peers can help you navigate questions such as:
- How do I approach direct and indirect costs?
- What are the restrictions when hiring students?
- What internal policies do I need to adhere to?
While many online resources can provide general guidance, always follow your own institution or organization’s specific policies and rules. If you’re still at a loss, reach out directly to the grant officer!
Budget Narratives
Besides the budget spreadsheet, funders may require or accept a budget narrative/justification. This gives you further opportunity to describe and, well, justify, each budget item.
You’ll be validating each item’s necessity, relating it to the activity/methods it supports, and explaining your calculation. For personnel, state their job title, tasks, time on the project, and annual salary plus benefits, noting if these figures come from a standard salary scale or collective agreement.
Formatting can vary and there may be little to no instruction. The key is making it easy to read. Have a colleague scan your document: Is it easy to see what items you’re requesting funds for and how much each item costs?
Example: A graduate-level Research Associate will be hired at 1.0 FTE who will have knowledge and experience with qualitative research. They will recruit participants, coordinate team meetings and materials, support data collection, guide evaluation, and develop workshop materials and outreach resources. $85,000 (Step 12, Org salary scale) + $22,950 (27% statutory premiums and benefits) = $107,950 with an annual increment of 3% for Year 2 ($111,189), Year 3 ($114,524), and Year 4 ($117,960). Total = $451,623.
Budgets can be tricky and are unique to each funder. That’s why it’s so important to read the instructions. Be realistic; your budget reflects your project, so clearly demonstrate its correlation with the proposal and ensure its scope is reasonable and appropriate.
Thanks for reading! I’d love to know what resonated with you or any specific components you’d like to learn more about. Leave a comment, use the Contact page, or email me directly. Until next time!
jbr editing 