Factors to Consider When Choosing Accounts Payable Services Providers.pptx
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Grant budgets
1. AFP
Association of
Fundraising Professionals
AFP Information Exchange
The Who, What, When, Where, and How of
Grant Budgets
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This AFP Information Exchange resource is provided by:
Waddy Thompson, Grantadviser.com
Contact: 917-657-4094Ā· waddy@grantadviser.com
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ASSOCIATION OF FUNDRAISING PROFESSIONALS
4300 Wilson Boulevard, Suite 300Ā· Arlington, VA 22203-4168
800-666-3863 (U.S. & Canada) .703-684-9410. 001-866-837-1948 (Mexico) ā¢ 703-684-0540 fax
www.afpnet.org ā¢ afp@afpnet.org
2. The Who, What, When, Where, and How of Grant
Budgets
You probably remember the mnemonic in the title from grade school English class on how to write a
news article. In teaching budget preparation I have long stressed that a budget must be able to stand on
its own and answer questions about your grant proposal (not raise questions). It occurred to me that in
this way, a grant budget is like a good news article and that by using the familiar formula the grant writer
will remember to include all important activities in the budget. These words are also good ways to group
expenses and income for a clear presentation. Of course, "why" is missing from the list of points to
cover. I've not yet discovered how to explain that in numbers -- yet.
How to make your budget tell your story
Who
Who will carry out your project? Staff, consultants, and volunteers all have a place in this part of your
budget. In thinking about staff, don't forget support staff and supervisory staff. They may spend only a
fraction of their time on a project, but some portion of their salaries should be included. And think about
what you'd have to pay people to do the work of your volunteers. If you include volunteers in your
staffing, list them on a separate line and put a corresponding line for the same amount in the Income
section of the budget as donated services.
What
List all your direct expenses (supplies, postage, mailing expense, shipping, special space rentals, service
fees, equipment, transportation, etc.) that you must have to do the project. Don't leave out the value of
supplies you have on hand; you'll have to replace them after the project has consumed them, so these
should be counted, too. You will probably need a line for indirect expenses. These are expenses that you
can't justify as being part of the project, but you must incur these expenses to operate your organization.
Examples are rent, utilities, insurance, and accounting and banking fees. Of course, if your budget is for
your entire operations, everything is a direct expense. (Indirect expenses and how to allocate them are
explained in depth in my book, and the Budget Builder Tool on the CD turns a complicated calculation
into flll-ln-the-blanks.)
When
When will your project take place? What period is the grant meant to cover? Sometimes, those won't be
the same thing. Let the funder know when you need the money by clearly labeling the column of
expenses or in the title on the page. And if the project dates and grant date aren't the same, you may
need to list the specific costs you want the funder to cover in a separate column. That way, they can see
the total costs, as well as what part their grant will play in the overall project.
Where
The location of the project can be expressed in several ways. If yours is an operating budget, you'll
include all your occupancy costs (rent, utilities, etc.) and costs of any additional spaces you'll have to
rent. You project grant budget will include a percentage of your occupancy costs as indirect expenses,
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3. indicating that at least part of the program will take place in your offices. Specific rental costs will show
that you are operating outside your space. And if that extra space is donated, include a fair market value
for the space in your expenses and show a corresponding space donation line in the Income section.
How
The statement of all of your income sources will tell the funder just how you expect to carry out the
project. Will there be service fees charged to clients? Will audiences pay admission? In addition to the
funder for whom you're preparing this budget, what other funders do you expect to support your
project? Which have already made a commitment and which are pending? Will you have any in-kind
income, that is, will anyone be donating goods or services (like your volunteers) to the project? List
everything here. The more sources supporting your project, the better it will look to the funder.
Footnotes and Budget Narratives
Sometimes, everything just can't be clear from numbers alone, so feel free to add footnotes or to write a
short narrative putting some of the important expenses into context. Your largest expenses will most
often need explanation, especially if their role in the project is not clear. For example, if you have large
travel costs, and your project takes place locally, you might want to explain that the travel costs will
allow you to bring in an expert from across the country to take part in the project.
Attached is a sample budget created using the above guide. Take a look and see just how much you can
tell about the project just from the budget!
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4. Project Budget
Expenses
Program Director (2%) $1,600
Assoc. Prog. Director (5%) $2,500
Assistant (2%) $6,000
Fringe and benefits @ 18% $1,818
Subtotal salaried personnel $11,918
Project coordinator $8,000
Library space usage fee (10 @ $500) $5,000
Artist Fees (10 @ $1,000) $10,000
Subtotal other personnel $23,000
Supplies $800
Postage/freight $500
Web site $1,000
Travel (local) $160
Marketing (posters & bookmarks) $16,000
Advertising $2,500
Subtotal other expenses $20,960
Indirect @ 12% $3,945
Total Expenses $59,823
Income
ConEdison $30,000
Library systems space donation $5,000
Foundation 1 $5,000
Foundation 2 $5,000
City agency challenge grant $15,000
Total Income $60,000
Surplus (Deficit) $177
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