Learn how to create accurate, up-to-date budgets in order to maintain control over finances and show funders exactly how your money is being used. What are the elements of an annual budget?
Also known as a budget detail, budget description, or budget justification, the budget narrative explains what the numbers in the budget table or spreadsheet represent and how you arrived at them.
Along with the budget, the budget narrative tells a funder exactly how a nonprofit will spend its investment, item by item. You did your research and that your project costs are reasonable and well thought out. The sooner you start it, the better, is our advice to clients.
Of course, some project planning work needs to happen first, but the sooner you start looking at the resources you will need and begin pricing them out, the faster your project will move from the realm of ideas into reality.
Basic Cost Categories Most government agencies put constraints on what can be included in the budget and on maximum request amounts, indirect costs, etc. Some federal proposals ask for a very detailed budget narrative, requiring that you to break out the budget narrative by project activity, discuss cost-per participant, and explain such things as how administrative indirect costs support project goals.
Foundations are typically less prescriptive.
Writing a budget summary spreadsheet, for both public and private sector grants, the budget narrative should state clearly and concisely where the amounts in each budget category will come from and what they will cover.
All expenses should relate clearly to the project narrative.
Additionally, the budget narrative should show clearly which budget items will be covered by matching funds or leveraged resources. Your budget narrative should detail: Personnel — Include the hours, wages, and duties of each grant-related position.
Fringe benefits — List all employment related costs, such as FICA, workers compensation, health insurance, and retirement benefits.
Travel — Cover mileage, airline tickets, taxis, car rentals, mileage reimbursements, parking fees, tolls, tips, and per diems for lodging and meals. Unusual Expenditures If the project is small, costs are straightforward, and the numbers tell the story clearly, you may not need a budget narrative.
However, if your budget contains any unusual items, use your budget narrative to explain them to the funder. Operated by remote control, Pluggie moves, speaks, and plays cassettes. Team members will use Pluggie in working in elementary school presentations.
Budget Narrative Structure Most federal proposals explain how to structure the budget narrative.
Please justify and explain any changes to the budget that differs from the reflected amounts reported in the 01 Year Budget Summary. If a cost of living adjustment (COLA) is included in future years, provide your organization’s personnel policies and procedures . Creating a budget for your business helps focus efforts and financial resources to your company's most important goals. You'll concentrate on sales targets when creating the revenue portion of your budget and think through each cost for the expenses, whether it will vary from last year, if you can cut the expense this year, and many other questions. 10 Free Household Budget Spreadsheets for Budgeting, How to Manage Money, and see a summary of the results based your debt reduction Bob Lotich has over 10+ years experience writing about Biblical personal finance and is the best-selling author of 4 books including Managing Money God's Way and has been named a top 20 social.
However, private and corporate funders often leave this decision up to you. For simple projects, one option is to fold the budget narrative into the budget, inserting a brief explanation under each item.
In this case, the budget narrative may be included on a spreadsheet. Another option is to number items in the left margin or attach footnote-style numbers to each line and to follow the numeric budget with: Sample Budget Narrative A word about abbreviations: Mathematical symbols and equations can also be a part of a budget narrative.
The guiding rule to follow is clarity. Personnel — List each position that pertains to the proposal. Compensation paid for employees engaged in grant activities should be consistent with that paid for similar types of work within the organization.
Two School Safety Officers: Covered by matching funds. It is important to explain what is included in the benefit package and at what percentage. Benefits include FICA 6. A breakdown of the fringe rate is included in the Budget Detail Worksheet. Staff Development — These may include required or desired trainings, workshops, or classes for staff.
The project-related purpose should be noted and explained. The Program Assistant will attend continuing education classes at the local community college in the area of social work and administration for two semesters to ensure state-of-the-art wraparound case management.
Travel — Explain the reason for travel expenses for project personnel e. Identify the location of travel. Three people to funder-required three-day training in Destination City. Equipment - List non-expendable items to be purchased.
Explain how the equipment is necessary for the success of the project and, if requested, the procurement method to be used.8 Budget Summary Templates – Samples, Examples & Formats While the idea of creating a budget can be a tedious and time-consuming task using a budget summary template can help make the process a little less tiresome.
Creating a budget for your business helps focus efforts and financial resources to your company's most important goals. You'll concentrate on sales targets when creating the revenue portion of your budget and think through each cost for the expenses, whether it will vary from last year, if you can cut the expense this year, and many other questions.
Planning and Writing an Annual Budget. Chapter 43 Sections. Section 1. Planning and Writing an Annual Budget located toward the bottom of the page under the In Summary section of the page.
income, and the ways they interact all in one place. In a budget spreadsheet, each vertical column represents a funding source, and each horizontal. For many grant writers, who sail through most of their proposals effortlessly because they are good writers, the budget can be a nail-biter.
However, knowing some basic principles of writing grants, such as how to present the costs of your project, can make writing a grant less stressful. Writing a Budget Narrative Writing a Budget Narrative.
This article was originally published on the Charity Channel. Also known as a budget detail, budget description, or budget justification, the budget narrative explains what the numbers in the budget table or spreadsheet represent and how you arrived at them.
A budget proposal plan is designed based on the project’s necessity. Before you download one of the sample budget proposal templates that we have got for free, you should know what a plan such as that is usually made up of.
Here are all the components of the budget proposal examples listed out for you.