Multiple funders
$400,000 won
Budget Strategy
Verified Win

The budget narrative that wins: aligning every cost line with your program logic

Reviewers read the budget narrative alongside the program narrative. If your budget tells a different story than your program, reviewers notice. Every cost line should map to a program activity — and the proportions should match your priorities.

Jennifer Brown, CPA

Grants Finance Consultant

Nonprofit Financial Strategies Group

61 upvotes

The Strategy

The budget narrative is the most overlooked part of a grant application — and it is where reviewers form their judgment about whether you can manage the grant. A budget that does not match your program narrative signals that the program is aspirational and the budget is real, or vice versa. The alignment test: take your program narrative and your budget narrative side by side. For every activity in your program narrative, is there a budget line? For every budget line, is there a program activity? If there are budget lines without program activities, you have hidden costs that reviewers will question. If there are program activities without budget lines, you have unfunded activities that reviewers will doubt. The proportionality test: look at the proportions. If your program narrative says the core intervention is community health workers, but 70% of your budget is for the PI salary and indirect costs, reviewers will question whether the CHWs are really the core. The budget proportions should reflect the program priorities. The personnel framing: personnel…

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