In short
A grant proposal budget costs every activity in your plan using real prices, showing the quantity, unit and rate for each line so that reviewers can check the arithmetic. It follows the funder’s rules on overheads and currency, shows co-funding separately, and is explained in a short budget justification. The budget and the narrative must match.
Reviewers often read the budget straight after the summary, because it shows whether the plan is realistic. A budget that is too low worries funders as much as one that is too high.
How to build it
- List every activity from the implementation plan.
- For each one, list what it needs: people, equipment, materials, travel, venues, services.
- Price each item from quotes, salary scales or published rates.
- Show quantity × unit rate = amount for every line.
- Add monitoring, evaluation, audit and, if allowed, a share of overheads.
- Show your own contribution and other co-funding separately.
- Check that the total, the amount requested and the narrative agree.
Typical cost categories
| Category | Examples |
|---|---|
| Personnel | Project staff salaries and benefits, by the share of time spent on the project |
| Equipment and supplies | Computers, tools, materials, learning resources |
| Activities | Training, events, workshops, community meetings |
| Travel | Field visits, transport, accommodation |
| Services | Consultants, translators, independent evaluation, audit |
| Indirect costs | A share of rent, finance and management, as the funder allows |
Writing the budget justification
Add a short note below the budget, or a separate annex, explaining how the largest costs were calculated and why they are needed. For example: instructor stipends cover 20 instructors for nine months at USD 360 a month each, slightly above the local minimum wage for a teaching assistant.
Common mistakes
- Budget lines that do not appear in the narrative, or activities with no cost.
- Round numbers with no breakdown.
- Leaving out monitoring, evaluation or audit costs.
- Ignoring the funder’s rules on overheads or ineligible costs.
- Totals that differ between the budget, the summary and the covering letter.
- Using a different currency from the one the funder asks for.
Frequently asked questions
Can I include overheads in a grant budget?
Many funders allow a share of indirect costs, often as a percentage of direct costs. The allowed rate varies, so check the guidelines and state your rate and how it is calculated.
What is co-funding?
Co-funding is the part of the project cost paid by your organisation or other donors, in cash or in kind. Some funders require a minimum share.
Written by Gachi Foundation, a non-profit in Jharkhand, India. All proposal-writing resources.