Step Six of Ten

Prepare a Detailed Budget

Preparing a detailed budget is a crucial part of your fundraising application, as it demonstrates your organisation’s financial planning and transparency. Start by listing all the expenses associated with your project. This includes both direct costs (such as salaries, supplies, equipment, and programme-specific costs) and indirect costs (such as administrative expenses and any overheads).

Break down each expense category into specific line items. For example, if you are including salaries, specify the positions, the percentage of time dedicated to the project, and the corresponding salaries. For materials and supplies, list the specific items needed and their estimated costs. Ensure that every expense is justified and necessary for the successful completion of the project.

Include a budget narrative or a justification that explains the rationale behind each line item. This narrative should provide context and detail for the expenses, helping funders understand why these costs are necessary and how they contribute to the project’s goals. For instance, explain how hiring a project manager will ensure effective coordination and the successful execution of the project’s activities.

Ensure your budget aligns with the funder’s guidelines, including any restrictions or limitations on how the funds can be used. Some funders may have caps on administrative costs or may not fund certain types of expenses, so it is important to tailor your budget accordingly.

Additionally, consider including any in-kind contributions or any match funding that will support the project. This can demonstrate to funders that your organisation has additional resources and a broader base of support, which can be a positive indicator of the project’s sustainability and feasibility.

A well-prepared budget not only shows that your organisation is capable of managing funds responsibly, but it also provides a clear picture of how the requested funding will be used to achieve your project’s objectives.

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