“Dollars and Sense: Grant Budgeting for Beginners”

1. “Dollars and Sense: Grant Budgeting for Beginners” Cora Alexander, M.P.A. Grant Writer Harris County Public Health and Environmental Services

2. Introductions • What is the key question about budgets that you would like to have answered today?

3. Preparing Grant Budgets There is no magic in a good grant budget. It requires a little research and a lot of common sense.

4. Budget Definition A budget depicts what you expectto spend (expenses) and earn (revenue) over a time period.

5. Types of Grant Budgets Organizational Budget vs. Program or Project Budget

6. Sample Organizational Budget

7. Sample Project Budgets

8. Grant Budget • Goal-Directed • Program Activities • Identifies Organizational Resources

9. Grant Proposal Sections • Summary or Abstract • Introduction • Problem Statement or Needs Assessment • Goals and Objectives • Project Approach or Program Plans • Evaluation Plan • Budget • Future Funding

10. Matching Funds “Put Your Cash On The Table” OR In-kind Services

11. IN-KIND CONTRIBUTION • A contribution of equipment, supplies, or other tangible resource, as distinguished from a monetary grant. Some corporate contributors may also donate the use of space or staff time as an in-kind contribution.

12. In-kind Services - Examples • Access to patients or databases • Transportation • Marketing or publicity • Part-time staffing • Volunteers • Office space • Products or services e.g. printing

13. Value of Volunteer Time The estimated dollar value of volunteer time is $18.77 per hour for 2006. Source: http://www.independentsector.org/programs/research/volunteer_time.html

14. Memorandum of Understanding • A document between two or more organizations which specifies the terms of a collaboration or agreement. It outlines who will do what and when. Outlines each partner’s tasks and responsibilities.

15. Grant Budget Categories • Personnel • Fringe Benefits • Travel • Equipment • Supplies • Contractual • Other • Indirect Costs

16. Sample Budget

17. Personnel • Be careful of arbitrarily inflating the budget with staff. Can you justify the position? • Don’t be top heavy.   The general rule is no more than 40% personnel costs, with 60% for direct program support. • Identify the percentage of time that each individual will spend on this particular project and pro-rate the costs. • Include projected salary increases when applying for multi-year grants. 

18. Personnel • If your Executive Director position is already funded through a government contract, then 5% of their time can be allocated for project oversight at no additional cost. • Do not double-dip: If a nurse’s salary is 100% covered by Harris County, then a supplemental 20% of this position’s salary cannot be charged to a different funder. However, the 20% contribution to this project can be shown as a County contribution to the project.

19. Personnel Supplant: “to eradicate and supply a substitute for “ OR “to take the place of and serve as a substitute ..“ Source: Merriam Webster Online

20. Fringe Benefits • Calculate fringe benefits and payroll taxes on the exact cost percentage, based on information from your human resources department and the specific job classification.

21. Travel • Be careful of non-essential travel in the budget for a project that may only have local impact. • If conference attendance is important for project effectiveness or results disseminations, identify the conference and provide justification in the budget narrative.

22. Equipment • Be careful of major equipment purchases (over $5,000). They only drive up the total budget costs. Consider leasing or contracted services, if necessary.

23. Supplies • Minimal costs for letterhead, postage, photocopying, and utilities might be perceived as part of normal operating costs and maybe viewed as budget inflation. • If your project involves public outreach with mass mailings, then nonprofit bulk rate postage and reasonable printing would be appropriate and significant budget items. 

24. Contractual • If your staff has the capacity to perform the project activities, then why would extensive outside consultants and out-of-state seminar attendance be needed?  • Recruit a staff member or contract service to donate training services and list as an in-kind contribution in the budget. 

25. Other Costs • Government funders may allow the fair market value of office space to be included as part of the required nonprofit financial match. However, this type of overhead cost is usually not appropriate for private foundations that prefer a designated cash match.  • Small expenses should properly be allocated for supplies, transportation, photocopying, or a similarly appropriate category. 

26. Indirect Costs • Program Costs such as rent, utilities, information technology, bookkeeping are shared among programs, or among functions within the organization (e.g. management, accounting, legal) are defined as indirect costs. • Reimbursement for indirect costs may be limited to a certain percent and/or it may require the preparation of in indirect cost rate proposal.

27. Writing a Successful Budget • Calculate the cost-benefit ratio. How will the grant funding be maximized through frugality, leveraging other funding, long-term benefits and cost per client? • Budget line items should reflect the goals and needs identified by the organization.  If working to provide immunizations to children, then the extra expense of adding a nurse practitioner to the staff can be justified. • The budget needs to be consistent with the project description and budget narrative. • Strive for budgetary and management efficiency

28. Thank You! Cora Alexander, M.P.A. Grant Writer Harris County Public Health and Environmental Services Phone 713-439-6085 calexander@hcphes.org