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Budget Overview

Before you begin drafting your budget, thoroughly review the federal funding opportunity announcement (FOA) or request for proposals (RFP). These documents outline the grant's objectives, eligibility criteria, and specific requirements for budget submissions. Be sure to note any limitations or restrictions on budget categories (e.g., indirect costs, equipment purchases, or travel expenses).

Federal grant funding typically covers a range of expenses, but not all costs may be reimbursed. Commonly allowable costs include:

• Personnel Costs: Salaries and wages for faculty, staff, postdocs, graduate and undergraduate students directly involved in the project.
• Facilities & Administrative Costs: Also known as indirect costs, this negotiated rate covers the overhead costs associated with the administrative grant such as building maintenance, administrative salaries, utilities, and more.
• Supplies and Equipment: Specialized materials required for the project.
• Travel: Costs associated with project-related travel.
• Contractual Costs: Payments for third-party services or subcontractors.

Itemize the budget by categories using the template provided by SMU (linked below):

• Personnel: Include the names, roles, and hours of each team member who will be working on the project. You should provide a clear explanation of how each role contributes to the success of the project.
• Supplies and Materials: List all items required for the project, including office supplies, software, or specialized materials. Be sure to provide estimates and justify their necessity for the project.
• Travel: Include travel expenses for project-related activities. Ensure that your estimates comply with the federal per diem rates and policies for lodging, meals, and transportation.
• Equipment: If your project requires specific equipment, itemize each piece and explain its relevance to the project’s success. Some grants may have caps on equipment purchases, so always check the guidelines.
• Contractual Services: If you plan to hire third-party contractors or consultants, outline their costs and responsibilities. Be clear about how these services will help achieve the project’s objectives.

It’s important to provide a clear explanation for each item in your budget. This helps reviewers understand the necessity of each expense and how it directly supports the goals of the project. The more detailed and justified your budget is, the more likely it is to meet the approval of federal reviewers. The budget should reflect the project’s scope and timeline. Each budget item should align with the goals and objectives of the grant proposal.