A grant budget is not an accounting attachment. It is part of the story of your project. A good budget proves that your organization understands what the project requires, how much it costs and how the requested funding will be used responsibly.
Many weak applications fail because the budget does not match the activities. Costs appear without explanation, staff time is underestimated, promotion is missing, evaluation is forgotten and own contribution is fictional. A strong budget is realistic, transparent and directly connected to the project plan.
The basic rule: every cost must have a purpose
A grant budget should answer one simple question: why is this cost necessary to achieve the project results?
If a cost does not support an activity, it should not be included. If an activity has no budget, the evaluator may doubt whether it can be implemented.
Example:
| Activity | Necessary costs |
| Workshops | Trainers, room, materials, coordination |
| Online platform | IT support, hosting, content creation |
| Local event | Venue, promotion, sound system, insurance |
| Research report | Expert work, data analysis, editing |
| Youth program | Recruitment, mentors, travel, materials |
| Evaluation | Surveys, analysis, report writing |
Eligible and non-eligible costs
Eligible costs are expenses that the funder allows you to finance. Non-eligible costs cannot be covered from the grant, even if they seem useful.
Common eligible costs may include:
- staff and expert remuneration,
- project coordination,
- training delivery,
- materials,
- venue rental,
- travel,
- promotion,
- accessibility measures,
- accounting,
- evaluation,
- equipment,
- insurance.
Common non-eligible costs may include:
- expenses outside the project period,
- costs unrelated to the project,
- penalties and fines,
- excessive or unjustified purchases,
- costs not documented properly,
- expenses prohibited by the rules,
- profit distribution,
- political campaigning, if excluded.
Always check the specific grant rules. The same cost may be eligible in one program and non-eligible in another.
Staff costs
NGOs often underestimate staff costs because they are used to relying on voluntary work. This may make the budget look cheaper, but it can also make the project unrealistic.
Staff costs may include:
- project coordinator,
- financial manager,
- trainer,
- expert,
- facilitator,
- mentor,
- communication specialist,
- evaluator,
- administrative support,
- child protection officer, if relevant.
If the project requires serious work, the budget should reflect it.
Own contribution
Own contribution is the part of the project financed or provided by the NGO or partners. It can be financial or non-financial, depending on the rules.
Examples of own contribution:
| Type | Example |
| Financial | NGO funds, donations, membership fees |
| In-kind | Free venue, equipment, materials |
| Personal | Volunteer work |
| Partner contribution | Expert time, promotion, transport |
| Institutional | Access to infrastructure |
Own contribution must be real. Do not include volunteer hours or donated space unless you can document them and the rules allow it.
How to calculate volunteer contribution
If volunteer work is accepted as own contribution, define:
- number of volunteers,
- tasks,
- number of hours,
- hourly value,
- method of documentation,
- person responsible for confirmation.
Example:
Five volunteers will support recruitment, event logistics and documentation. The total contribution will be 80 hours. Work will be documented through volunteer agreements and timesheets.
Budget categories: direct and indirect costs
Direct costs
Direct costs are clearly linked to project activities:
- trainers,
- materials,
- participant travel,
- venue,
- catering,
- equipment used in the project.
Indirect costs
Indirect costs support project management:
- accounting,
- office costs,
- administration,
- coordination,
- utilities,
- organizational support.
Some funders allow a flat-rate percentage for indirect costs. Others require detailed accounting. Always check the rules.
Budget justification
A budget line should not be only a number. It should be understandable.
Weak:
Expert – 12,000 PLN.
Better:
Expert responsible for preparing training content and delivering 24 hours of workshops. Rate based on market rates for specialized educational services.
Good budget justification helps evaluators see that the cost is reasonable.
Budget realism
A project budget should be neither inflated nor artificially low. Too high a budget may look wasteful. Too low a budget may look unrealistic.
Ask:
- Can we actually deliver this activity for this amount?
- Are staff rates fair?
- Have we included taxes and social contributions?
- Are travel and venue costs realistic?
- Did we include accessibility?
- Did we include reporting and evaluation?
- Did we include communication?
Documentation from day one
Every budget line should have future evidence:
| Cost | Evidence |
| Trainer | Contract, invoice, timesheet |
| Venue | Rental agreement, invoice |
| Materials | Invoice, participant documentation |
| Travel | Tickets, travel settlement |
| Volunteer contribution | Agreement, timesheet |
| Promotion | Screenshots, designs, invoices |
| Evaluation | Surveys, report |
| Equipment | Invoice, inventory record |
Common budget mistakes
- Budget does not match activities.
- Staff time is underestimated.
- Own contribution is not documented.
- Administrative costs are missing.
- Costs are too round and unexplained.
- Equipment purchase is not justified.
- VAT is ignored.
- Costs occur outside the project period.
- Procurement rules are not considered.
- Evaluation and reporting are unfunded.
Grantowo perspective
A strong budget makes the project credible. It shows that your NGO respects money, people and results. Do not treat the budget as a technical appendix. Treat it as a financial version of your project logic.
The evaluator should be able to look at the budget and understand exactly how the project will work.
Frequently Asked Questions
What is the most common budget mistake?
The most common mistake is a budget that does not match the project activities.
Can volunteer work be own contribution?
Yes, if the grant rules allow it and the work is properly documented.
Should coordination be included in the budget?
Usually yes. Coordination is real work and often essential for project quality.
Can equipment be purchased from a grant?
Sometimes yes, if allowed by the rules and clearly necessary for the project.
Is a lower budget always better?
No. A budget should be realistic. An unrealistically low budget may reduce credibility.
Links
Grants and funding for NGOs – https://grantowo.pl/
Knowledge base for non-governmental organizations – https://grantowo.pl/baza-wiedzy/
