Lessons Learned Tips on Budgeting

• Submit a budget that is below the specified maximum, even a couple percentage points can look really good to a funder (or more to the point phone up and ask about what a realistic pitch for your project would be).

• If cash and in-kind contributions factor into the proposal, what is the value specified for in-kind services?  For example, what is the hourly value the funder places on volunteers when calculating the value of in-kind services?  Does the funder allow program income (e.g., fees, sales, fundraising) to be included as part of the project’s matching contributions?

• Spell out your costing as specifically as possible.  Although it is true that for most proposals the overall cost is a major consideration, cost is not always the overriding factor.  If the proposal is otherwise attractive, and if your costing is transparent enough, a funder may have reasonable suggestions about how or where to trim costs…

• Submit a budget that is below the specified maximum, even a couple percentage points can look really good to a funder (or more to the point phone up and ask about what a realistic pitch for your project would be).

• If cash and in-kind contributions factor into the proposal, what is the value specified for in-kind services?  For example, what is the hourly value the funder places on volunteers when calculating the value of in-kind services?  Does the funder allow program income (e.g., fees, sales, fundraising) to be included as part of the project’s matching contributions?

• Spell out your costing as specifically as possible.  Although it is true that for most proposals the overall cost is a major consideration, cost is not always the overriding factor.  If the proposal is otherwise attractive, and if your costing is transparent enough, a funder may have reasonable suggestions about how or where to trim costs.

• If you need to outline a payment schedule, allow for start-up costs such as advertising, recruitment of personnel, program marketing/promotion, purchase or leasing of equipment and expenses associated with making a new site ready.

• Be clear on what your true costs of delivering the project are and be realistic about them in your proposal development.  While budgets can often be reduced, you need to understand what you absolutely need to have in place to ensure a successful program.

• Always ensure adequate resources for communication to stakeholders and partnership development – these take time and money and are often overlooked – treat it as “deliverable.”

• Ensure that you understand how you have arrived at your budget figures and can back up a figure that it listed in a proposal.  You don’t necessarily need to provide these details to the funder but you need to have it ready for the negotiation period.  Build a reputation for realistic budgeting. Accuracy in administration and overhead are particularly important since the method used will apply to all funder’s proposals. 

• Request advance payments of at least two months since you can’t afford to finance the cost flow.  Most funders are receptive.