While writing the budget in grant proposal writing, write an accurate budget taking into account all the expenses, and considering miscellaneous expenditures that may arise. However, the budget should never be inflated. To write the budget for a project effectively, divide it into the following subsections:
1) Direct expenses for the project
It entails all the expenses incurred as a result of undertaking the project in question. Because you cannot go back to the funding organization to request more funds after the proposal has been approved, make sure that you accurately write the estimates. While writing the grant proposal, take into account all expenses such as transport, advertisement, recruiting and training cost, space, traveling etc.
2) Personal expenses
This involves the cost that will be incurred as a result of the human resource used. You must indicate the number of persons involved, their responsibility, and how long they will be involved with the project. If you have volunteers, indicate whether the allowance they will get as they contribute to the project. In addition, take into account the personnel that may not be directly involved with the project. Where the project utilizes the employees of your organization, remember to include their benefits and taxes in the grant proposal.
3) Administrative/overhead expenses
These are expenses that will be incurred whether the project is implemented or otherwise. Due to the individuality of different organizations, get the specifics on the overhead expenses from the funding organization in question. For instance, some organizations may prefer that you give a flat rate of the overhead expenditure; some may require that you list down different items and their cost while others may not consider the administrative cost.
Note- one of the commonest errors in writing budgets is incorrect addition; add all your expenses accurately. Presenting a perfect grant proposal is not an option!