How to Write a Grant Budget: A Simple Guide with Examples

The budget is often the part of a grant application that volunteers dread most. It does not need to be. A grant budget is simply a list of what your project will cost, who is paying for each part, and how you worked out the numbers.

Assessors read budgets closely because a budget shows whether you have really planned the project. A clear, realistic budget can lift an average application. A confusing one can sink a good idea.

What a grant budget needs to show

A good grant budget answers four questions:

1. What will the project cost in total?
2. How much are you asking this funder for?
3. Where is the rest coming from? Your own cash, other grants, sponsorship or in-kind support.
4. How did you arrive at each figure? Quotes, past costs, or a clear calculation.

If a reader can answer all four in under a minute, your budget is doing its job.

Step 1: Start from the project plan

Never start with the amount you want. Start with what the project involves. List every activity, then every cost needed to deliver it. Typical categories include:

• Equipment and materials - items purchased for the project
• Venue and hire - halls, rooms, equipment hire
• Staff or contractor costs - facilitators, coaches, project coordinators (check whether wages are allowed)
• Travel - mileage, transport for participants
• Catering - where it supports the project, such as a community lunch
• Promotion - printing, advertising, design
• Training - courses, accreditation
• Evaluation - surveys, a small evaluation report
• Administration - some grants allow a modest percentage for overheads; many do not

Check the guidelines for what the funder will and will not pay for, and only request eligible costs from that funder.

Step 2: Cost each line properly

Every figure should have a basis. Use:

• Quotes from suppliers for equipment, building work and services. Many funders require one or more quotes for larger items. Check how many and whether they need to be written.
• Past actuals from previous events or projects.
• Simple calculations shown in the budget, for example "Facilitator, 20 sessions x 2 hours x $60 per hour = $2,400".

Avoid round numbers with no explanation. "$5,000 for promotion" looks like a guess. "Flyers (1,000 at $0.35) $350, social media advertising $300, local newspaper ad $450" looks like a plan.

Step 3: Separate what you are asking for

Most grant forms want to see the total project cost and the amount requested from them. A simple table works well:

Item	Total cost	Requested from this grant	Other funding	Source of other funding
Facilitator fees (20 sessions)	$2,400	$2,400	$0
Venue hire (20 sessions)	$1,600	$0	$1,600	In-kind, council hall
Kitchen equipment	$1,850	$1,850	$0
Ingredients	$2,000	$1,000	$1,000	Club fundraising
Volunteer time (100 hours)	$4,000	$0	$4,000	In-kind, volunteers
Total	$11,850	$5,250	$6,600

This shows the funder exactly what their money buys and that others are contributing too.

Step 4: Include in-kind and co-contributions

In-kind support is anything donated rather than paid for: volunteer hours, free venue use, donated materials, pro bono professional help. Including it shows community backing and the true value of the project.

A few rules:

• Value in-kind items realistically, at what you would otherwise pay.
• For volunteer time, check whether the funder specifies a rate. If it does not, use a reasonable and explainable figure, and state how you calculated it.
• Only include in-kind support that has actually been committed.
• Some funders require a cash co-contribution and will not count in-kind. Read the guidelines.

Step 5: Get GST right

GST is a common source of confusion. The basics, drawn from the Australian Taxation Office's guidance on grants and sponsorship for not-for-profits:

• If your organisation is not registered for GST, you cannot claim GST credits, so budget for the full price including GST.
• If your organisation is registered for GST, you can usually claim GST credits on purchases, so many funders ask for budgets excluding GST. Check the guidelines.
• Whether GST applies to the grant itself depends on whether you supply something in return. A grant you receive simply for meeting eligibility criteria is generally not a payment for a supply. If you give the funder something of value in return, such as advertising or naming rights, GST may apply if you are registered for GST.
• Sponsorship is different. If a sponsor receives signage, naming rights or advertising in return, it is generally a payment for a supply and GST applies if you are registered.

State clearly in your budget whether figures include or exclude GST. If you are unsure about your situation, check the ATO's guidance on grants and sponsorship or ask your accountant.

Step 6: Make the budget match the story

Assessors cross-check the budget against your written answers. Make sure:

• Every activity described in the application has matching costs.
• Every cost relates to an activity described in the application.
• The number of sessions, participants and items is the same everywhere.
• The total requested matches every place the form asks for it.
• The project dates in the budget match the timeline.

A budget line for something never mentioned in the application raises questions. So does an activity with no cost attached.

Step 7: Add a short budget justification

Many forms include a budget justification or notes field. Use it to explain anything that is not obvious:

• why you chose a particular supplier
• why a cost is higher than an assessor might expect, for example remote freight
• how you calculated volunteer hours
• what happens if costs change

Keep each note to one or two sentences.

Common grant budget mistakes

• Asking for ineligible costs, such as running costs, wages for existing staff or items bought before approval.
• Padding. Inflated figures damage trust. Assessors often know what things cost.
• Underpricing. Being too lean can mean you cannot deliver, and some funders see unrealistically low costs as a risk.
• Missing quotes when the guidelines require them.
• Arithmetic errors. Use a spreadsheet and check the totals.
• Mixing GST-inclusive and GST-exclusive figures.
• Forgetting contingency on building or capital projects, where the funder allows it.

After the grant is approved

Your budget becomes the basis for your acquittal. Keep every receipt and invoice, track spending against each line, and if you need to move money between lines, ask the funder in writing first. Many funding agreements allow small variations but require approval for larger ones. Our guide to grant acquittals explains what to keep.

A simple budget checklist

• Every activity has a cost, and every cost has an activity
• Each figure is based on a quote, past cost or shown calculation
• Requested amount is separated from other funding
• In-kind support is committed and realistically valued
• GST treatment stated and consistent
• Only eligible costs requested from this funder
• Totals checked and identical throughout the application

For the rest of the application, see our step-by-step guide on how to write a grant application.

Find a grant to budget for

See which grants match your organisation, free, at grantfinderpro.com.au/find. Matches are a rough guide only, so always check each funder's guidelines on eligible costs.