Budget Justification

Explain Each Line Item: Clearly describe the purpose of each line item within the context of your project’s design, goals, and objectives.

Define Assumptions: Outline the assumptions used in budget development, such as unit costs and quantities, and explain why these assumptions are reasonable.

Show the Math: Include detailed calculations for each cost. This transparency helps funders understand how you arrived at the total amount requested.

Relate Costs to Project Activities: Indicate how each budget item is necessary for the proposed project. Connect the dots between the costs and project activities.

Justify the Necessity: Provide a strong rationale for why each cost is essential for the success of the project. Avoid including unnecessary or unrelated expenses.

State Cost Estimates: Clearly state how the cost of each item was estimated. Use quotes, historical data, or standard rates as references.

Address Sponsor Concerns: Anticipate and address any potential questions or concerns the sponsor might have about the budget. This includes explaining any yearly variations or discrepancies.

Ensure Reasonableness: Make sure that the costs are reasonable and justifiable in the context of both the funder’s budget guidance and the successful execution of your proposed project.

Detail Indirect Costs: If applicable, explain the indirect costs and how they support the project’s infrastructure and administration.

Provide Context: A compelling narrative should accompany the numbers. Explain how the budget supports the project’s narrative and its overall goals.