Latest Tips for Writing a Project Budget for Grant Applications

Creating a detailed project budget is a critical step in the grant application process for community interest companies (CICs). In this blog, we’ll explore the key components of a project budget, including how to effectively allocate funds and justify your expenses. Whether you’re new to grant writing or have some experience, these up-to-date tips will help you craft a compelling budget that meets the expectations of funders.

Understanding the Importance of a Strong Budget

A well-structured budget demonstrates to funders that you have a clear plan for how their money will be spent. It shows your understanding of the project’s needs and highlights your ability to manage funds responsibly. A strong budget can be the difference between receiving funding or being overlooked.

Paying Yourself: The Right Approach

One of the most debated topics in grant budgeting is how to compensate yourself. The recommendation is to pay yourself as a freelancer rather than through PAYE, especially if you’re applying for smaller grants. 

A standard day rate for a self-employed project manager is approximately £600. 

This rate is supported by pay guidance, which you should reference in your application to justify your costs.

However, for grants like the Community Fund National Lottery, which focus on grassroots initiatives, a lower rate of around £150 per day may be more appropriate. 

This allows you to manage smaller projects effectively while ensuring you can still allocate a reasonable amount for your time. For example, you could budget for £9,000 over the year for your services.

Including Evaluation in Your Budget

Evaluating your project is crucial, and you should allocate funds for evaluation reports or hiring someone to assist with evaluation tasks. 

This could include social media management or writing reports on your project’s progress. 

By labeling this budget line as “evaluation and development,” you can also justify costs associated with future grant applications, making it a strategic investment.

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Venue Costs: Keep it Realistic

When budgeting for venue costs, aim for budget-friendly options. For instance, you might allocate around £75 per day for venue hire.

Funders are generally not inclined to approve extravagant venue expenses, so be sure to keep this realistic.

Project Materials: What to Include

Your budget should also account for project materials, including stationery, art supplies, and electronics necessary for your project. 

Larger grants may allow you to include costs for new equipment, but for smaller funds, consider sourcing refurbished items to stay within budget.

Marketing: A Necessary Expense

Marketing is essential for promoting your project. Allocate funds for digital marketing strategies, such as Facebook ads or social media promotions.

A budget of around £1,000 for ad spend can help grow your audience and attract more participants to your project.

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Websites and Apps: Justifying Development Costs

Many funders will cover website and app development, but you need to provide a clear justification for why these tools are necessary. 

For example, if your project involves vulnerable populations who may not use social media, having a dedicated app can provide a safe space for engagement.

Outline these needs clearly in your budget to enhance your proposal.

Training and Volunteer Expenses

Don’t forget to budget for training costs for yourself and your team. This could include safeguarding training or first aid courses. 

Additionally, make sure to include volunteer expenses, as funders often expect that volunteers will be compensated for their time and travel.

Accounting and Administrative Costs

Include costs for accounting services and administrative support in your budget. A standard fee for accounting might be around £600 per year, and this is often seen as a necessary expense.

Final Thoughts on Crafting Your Budget

Creating a comprehensive project budget requires careful planning and consideration of various expenses. By following these guidelines, you can develop a budget that not only meets funder expectations but also supports the successful implementation of your project. Remember to justify your costs clearly and align them with your project’s goals.

For those looking for more in-depth guidance on grant writing and project budgeting, consider joining a membership program or taking part in workshops that focus on these essential skills. With the right resources and support, you can enhance your grant writing capabilities and increase your chances of securing funding for your CIC.

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Step 1: Define Your Mission and Objectives

Before you begin the formal process, it’s essential to define your CIC’s mission. Consider the community issues you are passionate about and how your skills can contribute to addressing them. Clear objectives will guide your activities and help attract funding.

Step 2: Choose a Name and Structure

Your CIC needs a unique name that reflects its mission. Ensure that it complies with the regulations set by the Companies House. Additionally, decide on the structure of your CIC, whether it will be limited by shares or limited by guarantee.

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