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The document is a guide by Hanover Grants aimed at assisting clients in developing budgets and budget narratives for federal and foundation grant applications. It emphasizes the importance of a well-prepared budget alongside a proposal narrative to secure funding. The guide outlines steps for budget planning, common budgeting problems, examples of federal and foundation budgets, and provides templates and FAQs to help applicants navigate the budgeting process effectively.

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What information will a budget narrative provide to the grant reviewers?

A budget narrative provides space for you to explain how you arrived at your grant proposal budget and expense categories, expand on the descriptions in your budget line items, and share any additional funding sources planned for the project.

What is the format for a grant proposal?

Grant Proposal Cover Letter (Format, Samples, and Tips) Request the grant amount. Describe how this project is important, and how it will further the foundation's mission. List the contents of the proposal. Add references to previous contacts with the foundation if any.

How do you write a grant narrative?

What are the Keys to Effective Grant Narratives? Know Your Project. Think through all the details of the project to make sure that you can describe them to the funder thoroughly. ... Follow Funder Guidelines. ... Align Project Plan and Budget. ... Be Prepared. ... Start at the End. ... Write to a Non-specialist. ... Find a Friend. ... Share Your Passion.

How do you write a budget justification?

Explain why items are essential in relation to the aims and methodology of the project as well as meeting the goals of the project. Explain the line items. Do not merely restate the proposed expenditure. Provide detail sufficient to justify the rationale for acquiring the item under the proposed project.

How do you write a budget narrative for a grant?

What Should a Budget Narrative Include? Descriptions for every line item within the budget. Justifications for expenses related to the proposal or grant application. Elaborations on how indirect costs were estimated. Detailed explanations for the more substantial costs.

What should a grant budget look like?

A well-prepared budget should be reasonable and demonstrate that the funds being asked for will be used wisely. The budget should be as concrete and specific as possible in its estimates. Make every effort to be realistic, to estimate costs accurately. The budget format should be as clear as possible.

What is a budget narrative for a grant?

A budget narrative is a supplemental document that justifies each budget item and the budget request within a grant application or project proposal for funders. It also outlines the particular project goals or objectives and how each item requested in the budget narrative will be used to achieve those outcomes.

What is a grant project budget?

A grant budget includes all the costs associated with carrying out the grant project or program. In order to determine how much you will spend, you must know what activities and services you will provide, when they will be provided and by whom. A multi-year program will have a budget for each year of funding.

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