Budgets

It’s that part of the proposal we almost always tend to shrug off. “Oh, yeah, we have to write up something to explain the budget, we’ll get to that after we do the important stuff.” Evidence suggests it might be worth much more than a shrug.

MYTH: I am going to convert my for-profit business to a nonprofit business.

MYTH: If we’re running our nonprofit efficiently, our overhead and administrative costs should be small.

Funders will put the budget and budget justification sections of your proposal under a magnifying glass. So you’ve got to get them right. When you understand the Funder's concerns and the questions they’ll pose, you’re in a much stronger position to nail it. Here’s a list of questions funders are sure to ask.

The budget narrative, also called a budget justification, is a powerful tool for ensuring that reviewers of your proposal understand the financial side of the program. Presenting the numbers alone, without explanation, is risky. What’s clear to you may be fuzzy to a reader who hasn’t been involved in planning the program. When preparing a budget narrative, take a detailed approach that scrupulously avoids assumptions.

Inconsistencies in a grant proposal flag a faulty planning process, rushed writing, or carelessness. They can cause the reviewer to wonder if you know what you’re doing.

Pay particular attention to the following elements. They’re where problems are most likely to occur.

When it comes to statutes and regulations, the definition of terms really does matter. The definitional content of a term can have a huge impact on what you can or cannot do in a given situation.