The Not-So-Secret🤐 Guide to Grant Budgets:

Let’s break down this money puzzle together, shall we?

There is no “One Size Fits All Agencies” grant budget.  

First things first – you need to understand your program needs to find a grant that suits your organization. Some federal and private grants cover salary and equipment, but the majority of private funders refuse.

Every grant has its own set of rules and restrictions.

Federal grants are generally based on eCFR Title 2 Federal Assistance Chapter II part 200 guidelines. Allowable costs and modified direct total costs that are counted into your indirect/overhead expenses will vary by agency and application.

You can take the standard 15% de minimis rate, but we highly recommend negotiating your indirect rate when you enter into award negotiations. 

In general, Overhead rates should stick to 20% or less, and fringe should average 25% unless otherwise stated or negotiated.

Occasionally, government grants might throw you a bone with a small $1500 stipend for grant writing, but don’t count on it – your organization should be prepared to pay grant writers for their work regardless of the award outcome. We have seen several state planning grants in 2024 that actually paid for grant writers in Washington and Illinois, but these are the mythical unicorns of grants, just like general operating expense grants.

The “Crystal Ball” 🔮🔮Method (aka Planning Ahead) Here’s a pro tip that’ll save you countless headaches: Know your numbers before you even think about grant hunting. Would you go grocery shopping without knowing what you need to cook or buy for the week? Walking into grant research without even a WAG (Wild Ass Guess) or a back-of-napkin ROM (rough order of magnitude) cost estimate is like throwing darts blindfolded – not exactly a winning strategy. Grant reviewers can pinpoint an unrealistic budget from a mile away, and trust me, they’re not fans.

Your budget is the backbone of the application. Sure, you want $$$, but so does everyone else. Every activity must coincide with dollars spent and give back output metrics. Private funders are more flexible because they ask you what you are doing, tell you to explain how you are doing it, and ask what it’s going to cost. Federal funders tell you what they want you to accomplish, and you will tell them exactly how much it will cost you to do so. Some even require you to match each budget line item with the SOW line number. 🤷‍♀️🤯

The Salary Saga 🤑🤑🤑 Good news for your team – many federal grants allow salary requests! But here’s the catch (isn’t there always one?): You’ll need to navigate both the Notice of Funding Opportunity (NOFO /RFP /BAA / FOA) guidelines AND the agency’s website FAQs and webinars for those pesky cost of living increases and wage caps. Miss a required living wage increase or required activity cost and your proposal goes straight to the “thanks, but no thanks” pile. Don’t forget to check for minimum wage Davis Bacon and the Build America Buy America clauses.

The “Hidden Costs” Treasure Hunt🪙

Time for some real talk about expenses. Use Ctrl F to look for match funds and other keywords. Beyond the obvious stuff, have you considered:

– Do you need stipend funds, or to buy food for your program participants?

– Will you be required to travel for required funder presentations or does your organization need to look for funds that pay for international travel or equipment transportation costs?

– Do you need insurance and medical support? Many grants require a basic million in insurance coverage for certain activities.

– If you’ll need to kill some trees, what office supplies do you need for printing costs?

– Do you need an accountant or bookkeeper to keep you on track with independent audit requirements?

Trust me, hidden costs are like ninjas – they’ll sneak up on you when you least expect them.

Some clients refuse to go for a grant due to hidden overhead costs that will make it too expensive to run a program at the university level because of software costs, restrictive indirect allowable costs, or a lack of salary reimbursement.

The “Show Me the Money” Timeline Grants are NOT EASY MONEY! They can take 6-18 months before you see a dime. Some grants are playing hard to get due to payment reimbursement requirements. That means you need to pay for everything upfront before they’ll pay you back.

Don’t forget about those matching funds – sometimes you need to bring your own money to the party. This again is where Ctrl F is your friend, find the keywords in a 120-page FOA before you think about applying to a program. Can’t front the cash? Don’t panic! Consider finding a fiscal sponsor or developing a credit line at your local credit union – think of them as your financial wingman.

The Golden Rule of Grant Budgets✨🎗️🏆

Here’s the mic drop moment: Grants shouldn’t be your only financial pipeline. The magic number? Grants should only make up about 30% of your funding sources. If you can’t convince regular folks to believe in your cause enough to donate, grant funders might give you the side-eye. Think about it – if your project were a restaurant, would you want it to survive solely on food critics’ free meals? Nope. The same goes for your funding sources – diversification is key!

The Bottom Line Creating a grant budget isn’t rocket science, but it does require attention to detail, realistic planning, and a good understanding of your organization’s financial capacity. Keep these insights in your back pocket, and you’ll be navigating the grant budget maze like a pro in no time.

Remember: The best grant budgets tell a story – make sure yours is a bestseller, not a horror story!