Invest in Neighborhoods Inc. Invest in Neighborhoods Inc. For any proposal for government funding, budget forms are usually included in the application packet. These forms must be completed accurately and usually must be accompanied by a budget narrative, which is located in an appendix.
Filling in the budget amounts is usually the last task in grant proposal writing, but thought must be given to the budget before the proposal is developed. Hints as to the average size of awards will be found in the grant announcement. If the project that is proposed cannot be implemented within the suggested budgetary range, it is wise to revamp the project activities. A realistic program with an appropriate budget will impress the grant reviewers more than a program consisting of objectives that cannot be reasonably attained with the proposed budget. For this reason, it is advisable to think in terms of cost when developing the objectives and activities of the program.
Some agencies require that the applicant organization provide some type of support, either budgetary or in-kind, to demonstrate the organization's commitment to the project. Most agencies will also require that the applicant organization provide information regarding the continuance of the project after the grant funding has ceased. Attention needs to be given, during the planning stages of the project, as to how the project will be funded in later years. At this point, the applicant may want to solicit a commitment for future funding from local entities or to devise a services fee schedule which will add to the support of the program.
Government grant budget forms normally include a budget summary, which delineates the government and non-government shares of the budget (if a match or in-kind support is present). The budget will be then broken into categories such as personnel and fringe benefits, travel, equipment and supplies, contractual or consultant costs, building or construction costs, miscellaneous costs, and indirect costs. Complete information regarding these budget items will be given in the budget narrative and must coincide with the data on the forms. If the project spans more than one year, the budget form may ask for the funding information for the balance of the project.
In developing the personnel section of the grant budget, costs for salaries and fringe benefits of grant employees must be considered. The number and types of personnel will relate to the activities of the program. The budget narrative should provide detailed information regarding the positions, the type of work that will be accomplished by the individuals in each position, the number of hours per week each position will work, and the anticipated salary for each position. In estimating benefits, the costs of social security, healthcare, disability insurance, and unemployment are among those that must be calculated. Normally, a grant employee will receive all of the benefits that a regular employee receives. Information and assistance in calculating the fringe benefits can be obtained from the organization's business office or from the payroll accountant.
Many grant proposals will require the inclusion of job descriptions for personnel who will be hired and resumes for incumbent personnel who will be involved with the project. These should be referenced in the narrative but located in a separate appendix.
The travel section of the budget will include the cost of all anticipated travel during the project period. Some government grants require that travel to government-sponsored meetings or workshops be included in the travel section. Costs of any other anticipated workshops or training opportunities for staff members should be included. If the project demands local travel, from project site to project site or for home visitations, a figure for local travel mileage reimbursement should be budgeted. All travel expenses must be justified and explained in the budget narrative section. Never say "Travel, $2,000" without itemizing how that money will be spent.
If the proposal calls for the purchase of equipment necessary to perform the activities, the cost should be included in the budget. For example, if computers are needed as a part of the tutoring program, the cost of the computers and necessary software should appear in the Equipment section, and the anticipated costs for supplies, such as computer paper and ribbons, should be recorded in the Supplies section. Cost estimates should always be accurate. For large items, actual estimates from vendors will ensure that the budget is realistic and accurate. Reviewers will easily spot unrealistic cost estimates, and will interpret them to mean that the applicant did not adequately prepare the budget.
Some proposals will require the use of contractual services or consultants. If the evaluation of the project is contracted to an expert, this should be reflected in the budget. An organization may hire consultants to train staff members or to implement an activity that is beyond the scope of the applicant organization. Sufficient detail must be provided in the budget narrative to explain who the consultant is and what the services will be.
If construction is a part of the proposal, information about permits, architectural design costs, and estimated construction costs is essential. Construction grants are usually separate grants, not normally linked with a service or activity grant. However, minor building renovations may be required for a service grant, in order to accommodate the proposed project. As an example, electrical wiring may have to be enhanced to support computers.
Indirect costs are the costs associated with general operation of the organization, such as the cost of preparing the payroll, heating the building, maintaining the equipment, or purchasing general supplies. Other examples of indirect costs are: administrative salaries, telephone expense, equipment depreciation, and insurances and licenses. Indirect costs are normally costs that may not be identified with a proposed project, but are definitely associated with and integral to the overall operation of the organization.
Each organization receiving federal grant funds will negotiate an indirect cost rate through a regional office charged with that duty. This allowance is usually a percentage of the total direct costs of the proposal or simply a percentage of the personnel costs. This process should be completed prior to applying for federal funding, but, in some cases, can be negotiated after the grant is funded. For information regarding the indirect cost rate, contact the appropriate regional office listed in this section.
Both state and private grantors will allow the inclusion of an indirect cost rate or administrative allowance. The method used should be similar to the calculation of the federal indirect cost rate.
As noted earlier, the budget forms supplied as a part of the application packet for federal grant allow room for only the figures for each category. It is recommended, if not required by the RFP, that a more complete budget narrative be included as an appendix. The budget narrative will allow the applicant to more fully justify each budget item and will ensure that the reviewers understand the need for the funding.
Use of the budget narrative to provide detail will also assist the applicant in developing a more realistic budget. By itemizing each activity cost, the organization is forced to obtain actual estimates and fare schedules and build a realistic budget. If the grant is funded, the grantor will attempt to renegotiate some of the line item requests. If the organization has thoroughly researched the costs at the budget construction state, it will be in a superior position to withstand the grantor's desire to negotiate some of the budgeted items.
Example of budget narrative ____________________________________________________________________ A. Personnel Project Director (in-kind) (20% time) Public Relations Director (in-kind) (10% time) Director of Tutoring/Dropout Prevention (in-kind) Rene Bryk will supervise the entire SAILS tutoring program in all 5 clubs Directors of Tutoring 2 @ $20,000 ea. $40,000 Two full-time directors will be hired from grant funds: one at the Rose Hill Club and one at the Claymont Club to supervise tutoring services and monitor school progress. The Boys Clubs will provide funds to hire Directors of tutoring at the Fraim, Brown & Jackson Clubs as an in-kind match. (in kind) Tutors 5,600 hours @ $10/hr. $36,000 Tutors will provide individualized tutoring as per participant goals. The Clubs will match the tutoring costs with an additional $20,000 Computer Specialist Tutors will provide individualized assistance with DPI software and educational software program. Five tutors -- 900 hours @ $10/hr. $45,000 Total personnel $121,000 B. Fringe Benefits Full-time (20%) 8,000 Part-time (8.83%) 7,152 Total Fringes $15,152 C. Travel Travel funds will be used to attend OSAP meetings, substance abuse prevention conferences, COA workshops, etc. Staff travel will be used to reimburse staff for meetings at local schools, youth-oriented agencies, etc. 5 staff auto travel .20/mi. x 100 mi. x 12 mos. $1,200 To work with schools, courts, and other referring agencies 5 conference attendance round-trip travel @ $500 ea. 2,500 10 days per diem travel @ $150/day 1,500 Total Travel $5,200 ______________________________________________________________________________
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