How to Write a Grant Budget: Step-by-Step Guide with Examples

Your grant budget isn't just a list of numbers — it's a persuasive document that shows funders exactly how their money will create impact. This guide walks you through creating budgets that win grants.

Budget Basics

Two Types of Grant Budgets

1. Line-Item Budget Lists every expense category separately:

• Personnel
• Equipment
• Supplies
• Travel
• Contractual
• Other
• Indirect costs

2. Narrative Budget (Budget Justification) Explains WHY each expense is necessary and how you calculated it.

Most grants require BOTH.

The Standard Budget Categories

1. Personnel (Salaries & Wages)

Include all staff working on the grant:

Position	% Time on Grant	Annual Salary	Grant Request
Project Director	50%	$80,000	$40,000
Research Assistant	100%	$45,000	$45,000
Admin Support	25%	$40,000	$10,000
Subtotal			$95,000

Budget Justification Example:

"The Project Director (0.5 FTE, $40,000) will oversee all project activities, manage staff, ensure timeline adherence, and serve as primary liaison with the funder. This individual has 10+ years of experience in similar projects."

2. Fringe Benefits

Calculate based on your organization's actual rates:

Benefit	Rate	Applied To	Amount
FICA	7.65%	$95,000	$7,268
Health Insurance	15%	$95,000	$14,250
Retirement	5%	$95,000	$4,750
Subtotal	27.65%		$26,268

3. Equipment

Items over $5,000 with useful life >1 year:

Item	Quantity	Unit Cost	Total
Laboratory centrifuge	1	$12,000	$12,000
Data server	1	$8,500	$8,500
Subtotal			$20,500

Justification Example:

"The laboratory centrifuge ($12,000) is essential for sample preparation in our testing protocol. We obtained three quotes; this represents the lowest price for equipment meeting our specifications."

4. Supplies

Consumable items under $5,000:

Category	Monthly Cost	Months	Total
Lab supplies	$500	12	$6,000
Office supplies	$100	12	$1,200
Printing/copying	$150	12	$1,800
Subtotal			$9,000

5. Travel

Be specific about purpose and calculations:

Trip	Travelers	Cost per Trip	Total
National conference	2	$1,500	$3,000
Site visits (4)	1	$800	$3,200
Subtotal			$6,200

Show your math:

"National Conference: Airfare $500 + Hotel (3 nights × $200) + Per diem (4 days × $75) + Registration $400 = $1,500 per person"

6. Contractual/Consultants

External services:

Service	Rate	Units	Total
Evaluation consultant	$150/hr	80 hrs	$12,000
Web development	Fixed	1	$5,000
Audit services	Fixed	1	$3,000
Subtotal			$20,000

7. Other Direct Costs

Anything that doesn't fit above:

Item	Calculation	Total
Participant stipends	50 × $100	$5,000
Meeting room rental	12 × $200	$2,400
Software licenses	5 × $500	$2,500
Subtotal		$9,900

8. Indirect Costs (F&A)

Overhead rate approved by federal government or funder:

Base	Rate	Amount
Modified Total Direct Costs	25%	$46,717

Sample Complete Budget

Category	Amount
Personnel	$95,000
Fringe Benefits	$26,268
Equipment	$20,500
Supplies	$9,000
Travel	$6,200
Contractual	$20,000
Other	$9,900
Total Direct Costs	$186,868
Indirect Costs (25%)	$46,717
TOTAL PROJECT COST	$233,585

Budget Justification Tips

DO:

✅ Explain WHY each item is necessary ✅ Show your calculations ✅ Connect expenses to project objectives ✅ Include quotes for major purchases ✅ Be specific ("4 site visits" not "travel")

DON'T:

❌ Round to suspicious numbers ($10,000 exactly) ❌ Leave unexplained line items ❌ Include unallowable costs ❌ Pad the budget unnecessarily ❌ Forget fringe benefits

Common Unallowable Costs

Federal grants typically prohibit:

• Alcohol
• Entertainment
• Lobbying
• Bad debts
• Contingency funds
• Fundraising costs
• Most food (except for participants)

Matching/Cost Share

If required, show your match clearly:

Category	Federal Request	Grantee Match	Total
Personnel	$95,000	$20,000	$115,000
Fringe	$26,268	$5,530	$31,798
...etc

Budget Modification Rules

Most grants allow:

• Moving <10% between categories without approval
• Prior approval needed for >10% changes
• Equipment purchases often need pre-approval

Tools and Templates

Free Resources:

• Grants.gov Budget Template
• SF-424A (federal budget form)
• SF-424B (budget narrative form)

GrantNavigation Resources:

• Grant Writing Guides
• Application Checklist
• Budget Calculator

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