How will you spend the grant money? 

Other Necessary Funding 

Other necessary funding is a critically important element of any comprehensive budget. The funding source will want to know that you are aware of what you need beyond the purchase requested in your grant and whether you have the funds needed to cover those costs. For example, let’s say you’ve made a request for a thermal imager to help with night pursuits. The funds you request may not be – and probably won’t be – all you’ll need to operate the thermal imager. You must cover the costs of training personnel, installation, etc. 

If the RFP’s budget forms don’t have space to account for other necessary funding, include that information in the narrative section of the proposal. Your credibility will increase for doing so. 

Future Funding 

Funding sources want to know how you will continue your program when the grant runs out. If you are requesting funds to start a new program or expand an existing program, how will you maintain it after the grant funds have run out? 

A promise to continue looking for alternative sources of support is not sufficient. You should present a plan that will assure the funding source, to the greatest extent possible, that you will be able to maintain this new or expanded program after their grant is gone. If you are having difficulty keeping your current operations supported, you will probably have more difficulty in maintaining a level of operation that includes additional programs. 

Indirect Costs 

Organizations that operate several different funded projects face a particular problem. The cost to the organization of housing a project may drain the resources of the institution. Indirect costs are an attempt to compensate the organization for these costs and to provide a basis for the sharing of costs or funning a large institution among the various programs and projects within an institution. 

Some funding sources place a ceiling on indirect costs allowed in a given grant. Be sure to find out what percentage, if any, the funding source will allow for indirect costs and determine which portion of you budget the percentage applies to. 

Budget Summary & Budget Narrative 

Generally the budget summary comes before the budget narrative in the grant proposal. However, you should write the budget narrative first or you will have nothing to summarize in your budget summary.  The budget narrative, obviously, includes more detailed information about each line item whereas the budget summary is a quick summary of everything in your budget. Look at your RFP as most grants differ on what is required in the budget. 

Your budget may include some of the following items: 

• Salaries – Salaries require you know at least two variables. First, you have to know how much the person listed in the grant budget will get paid. Second, you have to forecast how much of their time will be dedicated to executing the demands of the proposal funded. Remember, no supplanting! Check your RFP or ask your grant maker how salaries are to be reflected in your budget. 
• Fringe Benefits – These are added to the salaries and wages to cover payroll expenses and such benefits as: FICA, workers compensation, unemployment, retirement, and other payroll costs as applicable. Fringe benefits are most often stated as a percent of salary. 
• Travel – Can include such expenses as airfare, mileage, per diem expenses for lodging and meals, registration fees, ground transportation, airport fees, etc. Federal grants require you to use a domestic carrier. Mileage and per diem rates for meals and lodging are generally dictated by, and available from, your budget office, accountant or fiscal affairs personnel. 
• Equipment – Most grant makers have a policy regarding permanent equipment. Be sure to read the RFP guidelines carefully and consult with a grants officer if you have any questions about putting equipment in your budget. Grant makers may want to know where you intend on purchasing your equipment, what brands you’re planning to buy and how you will dispose of the equipment. Government grant makers may require you to surrender the equipment to them at the close of the grant. Be sure and consult with your purchasing department about multiple bid requirements. 
• Supplies & Materials – This category includes expendable supplies and materials required for use on the project. 
• Other – This is a catchall for needed line items that do not fall into any of the above categories. Examples include telephone charges, postage, copying expense, printing/publication costs, promotional items, subcontracts, participation stipends, insurance on equipment, symposium or conference costs (not travel), consultants, etc. Be sure and itemize your “others.”