When most people think about writing a grant proposal, they immediately think of a text-heavy document that explains how a gift to your nonprofit will make a difference. While that is a part of the process, one of the most essential pieces of grant writing is creating the project budget.
If you’re more of a wordsmith than a mathematician, don’t lose hope, because creating a project budget may sound daunting, but it can actually be pretty simple. Read on for my top tips on creating a project budget I’ve developed over the past 10+ years as a grant writer.
The project budget is your organization’s opportunity to share with the foundation how you will spend the dollars they award your nonprofit.
The questions below will help you identify the costs you will need to carry out the program and how much you will need to raise to fund the project. Once you have answered these questions, you’ll be ready to put the numbers into a budget that will outline precisely how the dollars will be spent.
(Hint* It’s a good idea to create a draft of the project budget before writing any other parts of the grant. The budget will help inform your responses to other questions).
1) First, define the program. What project will you use the funding to cover?
2) Identify how much the project will cost.
3) Identify how you will spend the foundation’s donation if you are awarded a grant.
1. First, define the program. What project will you use the funding to cover?
For an example, let’s say the project is a fictional day camp for 50 at-risk youth called WeAllLoveCamp.
2. Now, with that specific program in mind, answer the following questions about what will be required to fund this project.
- What will you need to purchase? Are there items you will need to buy like curriculum, t-shirts and food? What will each of those items cost?
Each camper at WeAllLoveCamp will receive a t-shirt ($10) and a water bottle ($5). The camp will also provide a healthy lunch each day for 50 participants and 25 volunteers ($10 per day).
$15 per camper X 50 campers = $750
Meals for Campers = $2,500
Meals for Volunteers = $1,250
$4,500
- Where will you host the event, and are any special equipment or rentals required? How much is the cost to rent the facility or to obtain the necessary equipment?
The camp will be hosted at a city park. There is a $5000 facility rental fee for the five day camp. WeAllLoveCamp will also need to rent a sound system at $1000.
$6,000
- Who will carry out the program? What portion of their salary/fee will go toward this program? Are there any speakers or contract personnel required to carry out the project? What will the cost be?
WeAllLoveCamp will be led by a Program Director. Approximately $30,000 of the Program Director’s salary is used to plan, coordinate and carry out the camp. Additionally, each volunteer is required to complete a background check and the cost is $50 per screening
25 volunteers X $50 = $1,250 + $30,000 =
$31,250
- How will you share about this project with your target audience? Will you use flyers, e-mail communications, ads, social media ads? What are the costs you anticipate spending on each of these items?
WeAllLoveCamp will purchase targeted ads on FaceBook and Instagram for $1,000.
$1,000
- Will there be any administrative costs required to carry out the program? If so, what are they, and what will they cost?
WeAllLoveCamp will purchase an insurance policy for the camp at $2,500.
$2,500
Next, add up your total expenses to identify your project budget. Our example project will look like this:
WeAllLoveCamp Program Budget:
T-shirts & Water Bottles for all campers $750
Meals for campers $2,500
Meals for volunteers $1,250
Rental of Facility $5,000
Rental of A/V Equipment $1,000
Program Director Salary allocated to program $30,000
Background checks for volunteers $1,250
Marketing $1,000
Event Insurance $2,500
WeAllLoveCamp Total: $45,250
3. Identify how you will use the foundation’s gift to pay for the items outlined above. Remember that most foundations want to know exactly how their donation will be spent. Carefully read the proposal guidelines to determine if there are restrictions to how funds will be used (i.e., grant funds cannot be used to cover salaries, etc.).
- Will you use it to buy something?
- Will you use it to cover the cost of a facility or equipment rentals?
- Will you use it to pay staff salaries, a speaker or training?
- Will you use it to market the program to your target audience?
- Will there be any administrative costs required to carry out the program?
Let’s say we want to request $10,000 from the foundation. Our Program Budget may look like this:
Item Anticipated Expense Foundation Request
T-shirts & Water Bottles for all campers $750 $750
Meals for campers $2,500 $2,500
Meals for volunteers $1,250
Rental of Facility $5,000 $2,500
Rental of A/V Equipment $1,000
Program Director Salary allocated to program $30,000 $3,000
Background checks for volunteers $1,250 $1,250
Marketing $1,000
Event Insurance $2,500
Total $45,250 $10,000
Don’t let creating a project budget for your nonprofit become overwhelming. By walking through these easy to follow steps you will be able to quickly determine your organization’s budget needs.
A project budget can also be used for donor relations, and proposals for major gift solicitations.
Are you ready to get started with creating a project budget for your nonprofit organization?