Budget Preparation

The proposal budget should be derived directly from the project description.

Budgets are generally computed on a 12-month basis, unless the project will have a different time frame. Cost estimates are usually required for each year of a multiple-year project, though the level of detail varies by sponsor.

Follow sponsor guidelines for format.

Determine what costs the sponsor allows. For example, some government and nonprofit sponsors do not allow faculty academic year time to be charged time to a project.

The proposal budget for all years of a multiyear project is generally reviewed and approved before the project begins. Thus, it is important to include enough funds to cover likely cost increases, both before the project is funded (which may be 6 to 12 months after proposal submission) and in subsequent years. Because it is impossible to predict exactly how costs will change in the future, the budget figures are estimates of what a project will cost.