Every grant application will require you to submit a budget and sometimes we tend to think of them as a “side dish,” with the main entrée being the larger grant narrative, where you really tell your organization’s story in the statement of need, your client impact stories, and the evaluation plan. Those are all important, but a solid budget isn’t just helpful, it’s essential. Of course it demonstrates financial acumen, but it also tells a story about your organization’s priorities. An early mentor used to say, “Show me your budget and your schedule, and I’ll tell you what you value.” The way you allocate resources shows a funder what you think is essential and demonstrates gaps that you want funders to help fill.
I usually advise clients to start a grant proposal with the grant budget or at least don’t save it for last. Building out your budget as one of the first steps in writing a grant application can help you think through all the pieces, like staffing, timelines, and what it will realistically cost to pull it off. Too many people wait until the end, only to realize they need to go back and revise everything because the dollars don’t line up with the story in the rest of the document. Developing your budget and goals together (or adjusting existing versions to match the proposal) makes the rest of the process smoother. It also gives you time to run anything by the organization’s board if needed. You already have an internal organization budget, but you may want a simplified version for grant applications. Here are some simple grant budget templates to get you started or to use as a comparison for what you’re already using.
Cost Analysis
A clear, well-structured budget also builds your trustworthiness and credibility. One way you demonstrate that credibility is accurately allocating both direct costs (program expenses) and indirect costs (operations, administration, infrastructure). Just to add a little spice, funders may define those categories differently, so each grant application budget may need to be tweaked. The Bridgespan Group offers a great cost analysis toolkit that’s especially helpful for small to mid-sized nonprofits navigating this territory. Cost analysis is probably not every Executive Director’s idea of a fun day, but working with your finance team early on to get the budget right can strengthen your case for funding and save you headaches later.
Stick the Landing
After you’ve developed your budget and all the additional pieces of your grant application, make sure to revisit your budget one last time. Make sure every line item is accounted for in your narrative and that the formatting and language matches the funder’s requirements. It can be easy to skip this step because you’ve looked at the application so many times that you may have application fatigue or assume you’ve covered everything. Taking one last pass to map everything together will pay off when you catch mistakes or lack of clarity. Make sure you read everything with funder’s eyes, meaning ask yourself if everything is clear to a reader who doesn’t know the organization well. Having others read the application is extremely helpful for this.
When you go to submit the final application, don’t be surprised if an unexpected budget form shows up as a late-add in the funder’s online portal. Yep, it’s happened to me. Being ready for curveballs is just part of grant life. A thoughtful, aligned budget can elevate your entire grant proposal. It’s not just numbers; it’s a vital part of your case for support. Make it count.