THE BUDGET SHOWS THE DETAILED COSTS OF YOUR PROJECT
Show how the grantor’s money will be spent on the needs outlined in your Objectives Statement.
Show how your budget is reasonable and consistent with the needs you have outlined in your Objectives Statement.
Detail the costs of your project:
Direct costs are line items, or explicit project costs: personnel and the things they will use to carry out the project. Personnel costs can include salaries, benefits, and consultant’s fees. Other direct costs can be equipment, supplies, travel, and publication expenses. Each cost is listed on a separate line in your budget.
Indirect costs are operating costs or administrative costs not specifically listed in your budget as line items but are real costs in your project anyway. Time spent processing a payroll or time spent planning and "brainstorming" on your project are examples of indirect costs.
Balance your budget exactly
Don’t underestimate: this shows that you don’t understand your project realistically.
Don’t pad the numbers, or overestimate: this shows you are trying to get more than you really need.
Examples and Resources:
Ferris Frequently Asked Questions
Federal Government Office of Management and Budget, Grants Management. See this site for all OMB Circulars, OMB Grants Management Standard Forms, Federal policy documents, and related links. This site is an essential resource for developing a budget if you are applying for a Federal grant.
Financial Improvement and Post Audit Operations, U.S. Dept. of Education. This site explains the nuts and bolts of Indirect Costs and related issues for non-profit organizations.