Guide · Grant writing
How to Build a Grant Budget Funders Trust (With Template)
How to build a grant budget: personnel, fringe, supplies, contractors, indirect costs, in-kind support and other funding, with an example table and tips.
A grant budget lists every cost of your project and shows how it will be paid for. Build it from your activities: personnel and benefits, contractors, travel, equipment, supplies, other direct costs and indirect costs (if the funder allows them), then show income from other funders and in-kind contributions. Every line should be calculated, reasonable, and clearly linked to the narrative.
Reviewers often read the budget to test whether the project is realistic. A clear budget builds confidence; an unclear one raises doubts about everything else.
Standard budget categories
| Category | Includes | Show the calculation |
|---|---|---|
| Personnel | Staff salaries for project time | Salary x % of time |
| Fringe benefits | Payroll taxes, pensions, insurance | % of personnel |
| Contractors | Facilitators, evaluators, consultants | Rate x days |
| Travel | Mileage, transport, accommodation | Trips x cost |
| Equipment | Items above your capitalization threshold | Item x quantity |
| Supplies | Materials, printing, food for sessions | Unit x quantity |
| Other direct | Venue hire, software, insurance | Item x period |
| Indirect costs | Share of overhead, if allowed | Rate x base |
Example budget
| Line | Calculation | Total | Requested |
|---|---|---|---|
| Program coordinator | $40,000 x 50% | $20,000 | $20,000 |
| Fringe | 15% of $20,000 | $3,000 | $3,000 |
| Reading tutors (contract) | 2 x 30 weeks x $150 | $9,000 | $9,000 |
| Books and materials | 80 pupils x $40 | $3,200 | $3,200 |
| Family evenings | 10 x $250 | $2,500 | $0 |
| Venue | In-kind from school | $6,000 | $0 |
| Evaluation | External evaluator | $3,000 | $3,000 |
| Total | $46,700 | $38,200 |
Illustrative figures only.
Show all funding sources
List other income: grants pending or secured, your own funds, earned income, and in-kind support. Funders like to see they are not the only source, and that the project is fully funded.
Tips
- Use the funder's budget form if they provide one.
- Round sensibly and make sure totals add up.
- Follow cost rules: some funders exclude equipment, food or indirect costs, or cap them.
- Explain every line in a budget justification.
- Do not pad. Reviewers notice inflated costs.
- Use a spreadsheet with formulas to avoid arithmetic errors.
For indirect costs specifically, see what are indirect costs. For the full application, see how to write a grant proposal.
Frequently asked questions
What should a grant budget include?
Personnel, fringe benefits, contractors, travel, equipment, supplies, other direct costs, indirect costs where allowed, plus income from other sources and in-kind contributions.
Can I include salaries in a grant budget?
Usually yes, for staff time spent on the project, unless the funder excludes them. Show the percentage of time and the calculation.
What are in-kind contributions?
Donated goods, services or space that support the project. Showing them demonstrates community support and the full cost of the work.
Should the grant budget match the narrative?
Yes. Every activity in the narrative should be costed in the budget, and every budget line should relate to the narrative.
Keep reading
- How to Write a Grant Proposal: A Step-by-Step Guide for Nonprofits
- How to Write a Statement of Need for a Grant (With Example)
- Grant Goals and Objectives: How to Write SMART Objectives (Examples)
- How to Write a Letter of Inquiry for a Grant (With Example)
- How to Write a Grant Evaluation Plan (Simple Template)
- Nonprofit Impact Report: What to Include and How to Present Results
- Budget Justification for a Grant: How to Write It (With Examples)
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