A grant budget is a financial argument. Every line should answer “why this, why this much” and tie directly to your project narrative. Here’s how to build one reviewers trust.
Standard federal budget categories
Most federal budgets follow these line categories:
- Personnel — salaries for staff on the project, by percent of time.
- Fringe benefits — at your organization’s established rate.
- Travel — purpose, destinations, and per-trip estimates.
- Equipment — items above your capitalization threshold.
- Supplies — consumables below that threshold.
- Contractual — subcontracts and consultants.
- Other — and indirect costs (F&A) at your negotiated rate.
A simple budget template
Use this structure as a starting point — one row per category, with the calculation shown in the justification column:
| Category | Example line | Calculation | Amount |
|---|---|---|---|
| Personnel | Project coordinator | 0.5 FTE × $60,000 | $30,000 |
| Fringe benefits | On coordinator salary | 28% × $30,000 | $8,400 |
| Travel | 2 conferences | 2 × $1,300 | $2,600 |
| Supplies | Program materials | 200 participants × $40 | $8,000 |
| Contractual | External evaluator | Fixed fee | $12,000 |
| Indirect (F&A) | De minimis rate | 10% × direct costs | $6,100 |
| Total | $67,100 |
⬇ Download the free budget template (CSV) — open in Excel or Google Sheets.
Write a justification for every line
The budget narrative explains how you calculated each number. “Project coordinator, 0.5 FTE at $60,000 = $30,000” beats an unexplained “$30,000.” Show your math; reviewers reward transparency.
Tie the budget to the narrative
If your narrative promises an evaluation, the budget must fund one. Mismatches between what you propose and what you fund are a top reason for low scores.
Handle indirect costs correctly
Indirect costs cover overhead you can’t tie to one project. Use your federally negotiated rate if you have one, or the 10% de minimis rate many organizations may elect. Never pad — and never leave allowable costs on the table.
Watch for cost sharing
Some programs require cost sharing or matching funds. If yours does, document your match precisely — in-kind and cash contributions both count when allowed.
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Frequently asked questions
What are indirect costs in a grant budget?
Overhead that cannot be tied to a single project — administration, facilities, utilities. You recover them using your federally negotiated rate or the 10% de minimis rate, applied to your direct costs.
What is a budget justification?
A narrative explaining how each budget line was calculated and why it is necessary for the project. It shows reviewers your numbers are realistic and tied to your proposed activities.