Before I write a grant application, I build a spreadsheet with all of the project’s funding information (revenue and allocation or expense). I use the template pictured above. Once I know exactly what I’m funding, the writing goes a lot easier.
This template is only for a project, a subset of the organization’s mission. A foundation usually requests the nonprofit’s total budget as a separate attachment. Also, many foundations want to see operating funds separate from a project, not together. A grant application should be specific.
(Hint: many foundations fund a specific project rather than the more general operating funding.)
The critical part of building a project’s funding is the percentages. Foundations want to be a partner in a project, which generally means less than a fifty percent investment. What the percentage is depends on the foundation. I try not to go above thirty five percent in any category. But, this is only my guideline based on my opinion, which is not necessarily a good opinion or a valid guideline.
In any case, a nonprofit should be flexible when building a funding plan. Salaries can be included as long as they are for the project and the foundation allows salaries funding. If not, then I list salaries in Other Cash Support. Either way, I never have the foundation pay for the employee benefits. These costs give the impression of operating costs.
Besides the percentages, the other important part is the categories. The template has standard categories meant to be general, while being somewhat specific. Making things too specific can create confusion. A lot of foundations are okay with these categories.
Some foundations have their own budget template. I can complete their template with all the information from my spreadsheet. Plus, I have done the analysis that they may do to figure out how much of the project they are funding.
Writing a grant request is not easy. Getting the costs settled makes the writing less complicated. After all, it is mostly about the money.