Wondering how to develop your grant proposal budget narrative?
This article provides step by step approach on how to craft a winning grant proposal budget narrative.
When you are done developing your summary budget, the next action is to write your budget narratives.
Developing proper budget narratives should explain how the costs associated with each line item or category relate to the implementation of the project outlined in the proposal.
Grant Proposal Budget Narrative Definition
Budget Narratives provide justification on the basis of each proposed cost in the budget and how it is calculated. It simply implies expressing the estimates of the costs in words.
In Budget narratives, the estimated costs are expressed by line item or category in the budget.
The various categories in the budget include;
- PERSONNEL CATEGORY
Under personnel, you describe personnel costs. These costs refer to the labor costs of the organization staff engaged in the project excluding contractors. Personnel costs can be figured out base on hourly rate or percentage of the annual salary. Then provide a brief explanation of the work to be completed by each of the project staff.
Example 1:
- The Project Coordinator will spearhead the girls’ empowerment project at 50% of her time. Her annual salary is $100,000. At 50% the project will be charged with $50,000 for her time.
- FRINGE CATEGORY
Fringe benefits are calculated as a percentage of salary. Fringe benefits include worker’s compensation insurance, retirement benefits and health insurance, FICA and others.
So compute the fringe costs of each of the project staff and exclude contractors. Calculate the fringe benefits rate applied to each budgeted staff position assigned to the project.
Example:
- A Project Coordinator annual salary is $100,000. Our fringe benefits are 10% of salary. The total fringe benefit for this position is $10,000.
- TRAVEL CATEGORY
Travel category covers airline ticket, meals, taxi, mileage, lodging and others. Describe the means of travel and purpose of travel.
Example:
The Project Coordinator will travel to New Zealand for a Conference. The airline ticket, coach fare is $,1,500.20
- EQUIPMENT CATEGORY
Equipment includes items like telephone systems, computers, fax machines, photocopiers and others with more than 3 years shelf life.
Itemize and describe the equipment you are requesting to purchase, the purpose of each item and how the estimated costs were determined.
Example:
We will procure Karaoke equipment and television with DVD for classroom use during camping seasons. The total cost is $2,000
- MATERIALS CATEGORY
Itemize and describe the materials requested for purchase, and how the estimated costs were determined for each item.
Examples of Materials include training manuals, books, software and reference materials.
Example:
Cherry Foundation is purchasing a workbook for 100 undergraduates’ students at a discount of $100 a set. The total costs for 100 students are $10,000.
- SUPPLIES CATEGORY
Examples of items categorized under supplies are CDs, Pencils, copy paper, paper clips, postage and others.
Itemize and describe the supplies requested for purchase, the intended purpose and how the estimated costs were determined for each item.
Example:
We will procure 4 reams of paper needed for the girls’ workshop training. A ream costs $20. The total costs for the 4 reams is $80
- CONTRACTUAL SERVICES CATEGORY
Examples of items under contractual services include consulting cost, rents, leases, contractors, training contractual services, software licenses and any form of contract service you need.
To narrate its budget, describe the scope of work to be provided and how the costs were estimated.
Example:
Technical Support will be provided for the installation of computer systems for $100 per work station for 25 work stations for a total of $2500.
- CONSTRUCTION OR RENOVATION CATEGORY
This includes materials used in construction or renovation only.
To narrate its budget, Itemize and describe the materials requested for construction or renovation, and how the estimated costs were determined for each item.
Example:
- Showers will be installed for Veterans at their quarters. There are ten showers at a cost of $200 each for a total of $2,000.
In summary, budget narrative can be explained after you have finished computing the budget summary line item. Break it into components as illustrated above, and then explain each component in words. Make your budget narrative detailed and direct. Avoid unnecessary long explanation.
When you make your budget narrative detailed, it demonstrates a thorough and careful approach to the project and showcases your competence and confidence.
Example of Budget Narrative:
GRANT PROPOSAL BUDGET NARRATIVE FOR GIRLS EMPOWERMENT PROJECT
- Personnel……………………………………………………………………$60,000
- The Project Coordinator at 100% full time, will be paid $45,000
He will supervise all training related tasks.
- Administrative Assistant will receive $25,000 as salary at 50% full time.
She will provide clerical support.
- Fringe Benefits ………………………………………………………………$20,000
The fringe rate is 30%
Total fringe is 30% of $60,000
Health Insurance is $15,000 annually, the required employer FICA match is 7.65%
Is $1,530, workers compensation at 3.6% is $720 and term life insurance at 13.75%
Is $2,750.
- Materials and Supplies ……………………………………………………..$3,600
Supplies $1,200
Printing $1,200
Postage $1,200
- Contractual Services ………………………………………………………..$42,000
Training fee for facilitators who will be contracted to deliver courses- $42,000
Training will cost average of $3,000 per month.
Rented offices $1,200
Meeting space $1,200
Internet Connection $1,200
Web site Maintenance $1,200
Telephone Service $1,200
Total Budget Request ……………………………………………………………………………….$125,600
