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How to Develop and Write a Grant Proposal
Merete F. Gerli
Information Research Specialist
August 15, 2014
Congressional Research Service
7-5700
www.crs.gov
RL32159
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How to Develop and Write a Grant Proposal
Summary
This report is intended for Members and staff assisting grant seekers in districts and states and
covers writing proposals for both government and private foundation grants. In preparation for
writing a proposal, the report first discusses preliminary information gathering and preparation,
developing ideas for the proposal, gathering community support, identifying funding resources,
and seeking preliminary review of the proposal and support of relevant administrative officials.
The second section of the report covers the actual writing of the proposal, from outlining of
project goals, stating the purpose and objectives of the proposal, explaining the program methods
to solve the stated problem, and how the results of the project will be evaluated, to long-term
project planning, and, finally, developing the proposal budget.
The last section of the report provides a listing of free grants-writing websites, including
guidelines from the Catalog of Federal Domestic Assistance and the Foundation Center’s
“Proposal Writing Short Course.”
Related CRS reports are CRS Report RL34035, Grants Work in a Congressional Office, by
Merete F. Gerli; CRS Report RL34012, Resources for Grantseekers, by Merete F. Gerli; and CRS
Report RS21117, Ethical Considerations in Assisting Constituents With Grant Requests Before
Federal Agencies, by Jack Maskell.
This report will be updated as needed.
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Contents
Developing a Grant Proposal ........................................................................................................... 1
Preparation ................................................................................................................................. 1
Developing Ideas for the Proposal ............................................................................................. 1
Community Support .................................................................................................................. 2
Identifying Funding Resources .................................................................................................. 3
Getting Organized to Write the Proposal ................................................................................... 4
Writing an Effective Grant Proposal ................................................................................................ 5
Overall Considerations .............................................................................................................. 5
Basic Components of a Proposal ............................................................................................... 5
Cover Letter ............................................................................................................................... 6
Proposal Summary: Outline of Project Goals ............................................................................ 6
Introduction: Presenting a Credible Applicant .......................................................................... 7
Problem Statement or Needs Assessment .................................................................................. 7
Project Objectives: Goals and Desired Outcome....................................................................... 8
Program Methods and Program Design: A Plan of Action ........................................................ 8
Evaluation: Product and Process Analysis ............................................................................... 10
Future Funding ........................................................................................................................ 11
Budget Development and Requirements ................................................................................. 11
Proposal Appendix ................................................................................................................... 13
Additional Proposal Writing Websites ........................................................................................... 13
Contacts
Author Contact Information........................................................................................................... 14
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Developing a Grant Proposal
Preparation
A well-formed grant proposal is one that is carefully prepared, thoughtfully planned, and
concisely packaged. The potential applicant generally seeks first to become familiar with all of
the pertinent program criteria of the funding institution. Before developing a proposal, the
potential applicant may refer to the information contact listed in the agency or foundation
program description to learn whether funding is available, when applicable deadlines occur, and
the process used by the grantor agency or private foundation for accepting applications.
Grant seekers should know that the basic requirements, application forms, information, and
procedures vary among grant-making agencies and foundations. Federal agencies and large
foundations may have formal application packets, strict guidelines, and fixed deadlines with
which applicants must comply, while smaller foundations may operate more informally and even
provide assistance to inexperienced grantseekers. However, the steps outlined in this report
generally apply to any grant-seeking effort.
Individuals without prior grant proposal writing experience may find it useful to attend a
grantsmanship class or workshop. Applicants interested in locating workshops or consulting more
resources on grantsmanship and proposal development should consult the Internet sites listed at
the end of this report and explore other resources in their local libraries.
Local governments may obtain grant writing assistance from a state’s office of Council of
Governments (CSG) or Regional Council. The primary mission of CSG is to promote and
strengthen state government in the federal system by providing staff services to organizations of
state officials. Grassroots or small faith-based nonprofit organizations can seek the help and
advice of larger, more seasoned nonprofit organizations or foundations in their state.
Developing Ideas for the Proposal
The first step in proposal planning is the development of a clear, concise description of the
proposed project. To develop a convincing proposal for project funding, the project must fit into
the philosophy and mission of the grant-seeking organization or agency; and the need that the
proposal is addressing must be well documented and well articulated. Typically, funding agencies
or foundations will want to know that a proposed activity or project reinforces the overall mission
of an organization or grant seeker, and that the project is necessary. To make a compelling case,
the following should be included in the proposal:
• Nature of the project, its goals, needs, and anticipated outcomes;
• How the project will be conducted;
• Timetable for completion;
• How best to evaluate the results (performance measures);
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• Staffing needs, including use of existing staff and new hires or volunteers; and
• Preliminary budget, covering expenses and financial requirements, to determine
what funding levels to seek.
When developing an idea for a proposal, it is also important to determine if the idea has already
been considered in the applicant’s locality or state. A thorough check should be made with state
legislators, local government, and related public and private agencies which may currently have
grant awards or contracts to do similar work. If a similar program already exists, the applicant
may need to reconsider submitting the proposed project, particularly if duplication of effort is
perceived. However, if significant differences or improvements in the proposed project’s goals
can be clearly established, it may be worthwhile to pursue federal or private foundation
assistance.
Community Support
For many proposals, community support is essential. Once a proposal summary is developed, an
applicant may look for individuals or groups representing academic, political, professional, and
lay organizations which may be willing to support the proposal in writing. The type and caliber of
community support is critical in the initial and subsequent review phases. Numerous letters of
support can influence the administering agency or foundation. An applicant may elicit support
from local government agencies and public officials. Letters of endorsement detailing exact areas
of project sanction and financial or in-kind commitment are often requested as part of a proposal
to a federal agency. Several months may be required to develop letters of endorsement, since
something of value (e.g., buildings, staff, services) is sometimes negotiated between the parties
involved. Note that letters from Members of Congress may be requested once a proposal has been
fully developed and is ready for submission.
While money is the primary concern of most grantseekers, thought should be given to the kinds
of nonmonetary contributions that may be available. In many instances, academic institutions,
corporations, and other nonprofit groups in the community may be willing to contribute technical
and professional assistance, equipment, or space to a worthy project. Not only can such
contributions reduce the amount of money being sought, but evidence of such local support is
often viewed favorably by most grant-making agencies or foundations.
Many agencies require, in writing, affiliation agreements (a mutual agreement to share services
between agencies) and building space commitments prior to either grant approval or award. Two
useful methods of generating community support may be to form a citizen advisory committee or
to hold meetings with community leaders who would be concerned with the subject matter of the
proposal. The forum may include the following:
• Discussion of the merits of the proposal;
• Development of a strategy to create proposal support from a large number of
community groups, institutions, and organizations; and
• Generation of data in support of the proposal.
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Identifying Funding Resources
Once the project has been specifically defined, the grant seeker needs to research appropriate
funding sources. Both the applicant and the grantor agency or foundation should have the same
interests, intentions, and needs if a proposal is to be considered an acceptable candidate for
funding. It is generally not productive to send out proposals indiscriminately in the hope of
attracting funding. Grant-making agencies and foundations whose interest and intentions are
consistent with those of the applicant are the most likely to provide support. An applicant may
cast a wide, but targeted, net. Many projects may only be accomplished with funds coming from a
combination of sources, among them federal, state, or local programs and grants from private or
corporate foundations.
The best funding resources are now largely on the Internet. Key sources for funding information
include the federal government’s Catalog of Federal Domestic Assistance (CFDA),
http://www.cfda.gov, and the Foundation Center, http://www.foundationcenter.org, the
clearinghouse of private and corporate foundation funding. For a summary of federal programs
and sources, see CRS Report RL34012, Resources for Grantseekers, by Merete F. Gerli, and
other CRS reports on topics such as community or social services block grants to states, rural
development assistance, federal allocations for homeland security, and other funding areas.
A review of the government or private foundation’s program descriptions’ objectives and uses, as
well as any use restrictions, can clarify which programs might provide funding for a project.
When reviewing individual CFDA program descriptions, applicants may also target the related
programs as potential resources. Also, the kinds of projects the agency or foundation funded in
the past may be helpful in fashioning your grant proposal. Program listings in the CFDA or
foundation information will often include examples of past funded projects.
Many federal grants do not go directly to the final beneficiary, but are awarded through “block”
or “formula” grants to state or local agencies which, in turn, distribute the funds (called “pass-
through”). States may post funding opportunities and subaward grants originating in federal
formula or block grant allocations. Grantseekers should look on state government sites for these
funding opportunities—each state handles subawarding differently. For more information, see
CRS Report R40486, Block Grants: Perspectives and Controversies, by Robert Jay Dilger and
Eugene Boyd, and CRS Report R40638, Federal Grants to State and Local Governments: An
Historical Perspective on Contemporary Issues, by Robert Jay Dilger.
There are many types of foundations: national, family, community, corporate, etc. For district or
community projects, as a general rule, it is a good idea to look for funding sources close to home,
which are frequently most concerned with solving local problems. Corporations, for example,
tend to support projects in areas where they have offices or plants. Most foundations only provide
grants to nonprofit organizations (those registered by the Internal Revenue Service as having
501(c) tax-exempt status), though the Foundation Center publishes information about foundation
grants to individuals.
Once a potential grantor agency or foundation is identified, an applicant may contact it and ask
for a grant application kit or information. Federal agencies may refer applicants to the website
Grants.gov (http://www.grants.gov). Later, the grant seeker may ask some of the grantor agency
or foundation personnel for suggestions, criticisms, and advice about the proposed project. In
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many cases, the more agency or foundation personnel know about the proposal, the better the
chance of support and of an eventual favorable decision.
Federal agencies are required to report funding information as funds are approved, increased, or
decreased among projects within a given state depending on the type of required reporting. Also,
grant seekers may consider reviewing the federal budget for the current and future fiscal years to
determine proposed dollar amounts for particular budget functions.
The grant seeker should carefully study the eligibility requirements for each government or
foundation program under consideration (see, for example, the Applicant Eligibility and Rules
and Regulations sections of the CFDA program description). Federal department and agency
websites generally include additional information about their programs. CFDA program
descriptions and websites include information contacts. Applicants should direct questions and
seek clarification about requirements and deadlines from the contacts. The applicant may learn
that he or she is required to provide services otherwise unintended such as a service to particular
client groups, or involvement of specific institutions. It may necessitate the modification of the
original concept in order for the project to be eligible for funding. Questions about eligibility
should be discussed with the appropriate program officer.
For federal grants, funding opportunities notices appear on websites such as Grants.gov at
http://www.grants.gov or FedConnect at https://www.fedconnect.net. Applicants can search and
sign up for email notification of funding opportunities, and download applications packages. To
submit applications, registration is required. The grantseeker must also obtain Dun and Bradstreet
(DUNS) and register with System for Award Management (SAM): Grants.gov provides
instructions and links. Deadlines for submitting applications are often not negotiable, though
some federal programs do have open application dates (refer to the CFDA program description).
For private foundation funding opportunities, grant seekers should contact foundations or check
the Foundation Center’s website for daily postings of Requests for Proposals (RFPs) at
http://foundationcenter.org/findfunders/fundingsources/rfp.html. Specified deadlines are usually
associated with strict timetables for agency or foundation review. Some programs have more than
one application deadline during the fiscal or calendar year. Applicants should plan proposal
development around the established deadlines.
Getting Organized to Write the Proposal
The grant seeker, after narrowing the field of potential funders, may want to approach the most
likely prospects to confirm that they might indeed be interested in the project. Many federal
agencies and foundations are willing to provide an assessment of a preliminary one- or two-page
concept paper before a formal proposal is prepared. The concept paper should give a brief
description of the needs to be addressed, who is to carry out the project, what is to be
accomplished, by what means, how long it will take, how the accomplishments will be measured,
plans for the future, how much it will cost, and the ways this proposal relates to the mission of the
funding source.
Developing a concept paper is excellent preparation for writing the final proposal. The grant
seeker should try to see the project or activity from the viewpoint of the grant-making agency or
foundation. Like the proposal, the concept paper should be brief, clear, and informative. It is
important to understand that from the funder’s vantage point, the grant is not seen as the end of
the process, but only as the midpoint. The funder will want to know what will happen to the
project once the grant ends. For example, will it be self-supporting or will it be used as a
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demonstration to apply for further funding? Will it need ongoing support, for how long, and what
are the anticipated outcomes?
If the funding source expresses interest in the concept paper, the grant seeker can ask for
suggestions, criticism, and guidance, before writing the final proposal.
Feedback and dialog are essential elements to a successful funding proposal.
Throughout the proposal writing stage, an applicant may want to keep notes on ideas and related
materials for review. The gathering of documents such as articles of incorporation, tax exemption
certificates, and bylaws should be completed, if possible, before the writing begins.
At the end of this report, useful websites cover proposal writing, give sample grant proposals
(including a template for writing a proposal), and link to federal program information and grants
management circulars.
Writing an Effective Grant Proposal
Overall Considerations
An effective grant proposal has to make a compelling case. Not only must the idea be a good one,
but so must the presentation. Things to be considered include the following:
• All of the requirements of the funding source must be met: prescribed format,
necessary inclusions, deadlines, etc.
• The proposal should have a clear, descriptive title.
• The proposal should be a cohesive whole, building logically, with one section
leading to another; this is an especially important consideration when several
people have been involved in its preparation.
• Language should be clear and concise, devoid of jargon; explanations should be
offered for acronyms and terms which may be unfamiliar to someone outside the
field.
• Each of the parts of the proposal should provide as brief but informative a
narrative as possible, with supporting data relegated to an appendix.
At various stages in the proposal writing process, the proposal should be reviewed by a number of
interested and disinterested parties. Each time it has been critiqued, it may be necessary to rethink
the project and its presentation. While such revision is necessary to clarify the proposal, one of
the dangers is that the original excitement of those making the proposal sometimes gets written
out. Somehow, this must be conveyed in the final proposal. Applicants are advised: make it
interesting!
Basic Components of a Proposal
The basic sections of a standard grant proposal include the following:
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1. Cover letter
2. Proposal summary or abstract
3. Introduction describing the grant seeker or organization
4. Problem statement (or needs assessment)
5. Project objectives
6. Project methods or design
7. Project evaluation
8. Future funding
9. Project budget
Cover Letter
The one-page cover letter should be written on the applicant’s letterhead and should be signed by
the organization’s highest official. It should be addressed to the individual at the funding source
with whom the organization has dealt, and should refer to earlier discussions. While giving a brief
outline of the needs addressed in the proposal, the cover letter should demonstrate a familiarity
with the mission of the grantmaking agency or foundation and emphasize the ways in which this
project contributes to these goals.
Proposal Summary: Outline of Project Goals
The grant proposal summary outlines the proposed project and should appear at the beginning of
the proposal. It could be in the form of a cover letter or a separate page, but should definitely be
brief—no longer than two or three paragraphs.
The summary should be prepared after the grant proposal has been developed in order to
encompass all the key points necessary to communicate the objectives of the project. It is this
document that becomes the cornerstone of the proposal, and the initial impression it gives will be
critical to the success of the venture. In many cases, the summary will be the first part of the
proposal package seen by agency or foundation officials and very possibly could be the only part
of the package that is carefully reviewed before the decision is made to consider the project any
further. When letters of support are written, the summary may be used as justification for the
project.
The summary should include a description of the applicant, a definition of the problem to be
solved, a statement of the objectives to be achieved, an outline of the activities and procedures to
be used to accomplish those objectives, a description of the evaluation design, plans for the
project at the end of the grants, and a statement of what it will cost the funding agency. It may
also identify other funding sources or entities participating in the project.
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For federal funding, the applicant should develop a project which can be supported in view of the
local need. Alternatives, in the absence of federal support, should be pointed out. The influence of
the project both during and after the project period should be explained. The consequences of the
project as a result of funding should be highlighted, for example, statistical projections of how
many people might benefit from the project’s accomplishments.
Introduction: Presenting a Credible Applicant
In the introduction, applicants describe their organization and demonstrate that they are qualified
to carry out the proposed project—they establish their credibility and make the point that they are
a good investment, in no more than a page. Statements made here should be carefully tailored,
pointing out that the overall goals and purposes of the applicant are consistent with those of the
funding source. This section should provide the following:
• A brief history of the organization, its past and present operations, its goals and
mission, its significant accomplishments, any success stories.
• Reference should be made to grants, endorsements, and press coverage the
organization has already received (with supporting documentation included in the
appendix).
• Qualifications of its professional staff, and a list of its board of directors.
• Indicate whether funds for other parts of the project are being sought elsewhere;
such evidence will strengthen the proposal, demonstrating to the reviewing
officer that all avenues of support have been throughly explored.
• An individual applicant should include a succinct resume relating to the
objectives of the proposal (what makes the applicant eligible to undertake the
work or project?).
Problem Statement or Needs Assessment
This section lays out the reason for the proposal. It should make a clear, concise, and well-
supported statement of the problem to be addressed, from the beneficiaries’ viewpoint, in no more
than two pages.
The best way to collect information about the problem is to conduct and document both a formal
and informal needs assessment for a program in the target or service area. The information
provided should be both factual and directly related to the problem addressed by the proposal.
Areas to document are as follows:
• Purpose for developing the proposal.
• Beneficiaries—who are they and how will they benefit.
• Social and economic costs to be affected.
• Nature of the problem (provide as much hard evidence as possible).
• How the applicant or organization came to realize the problem exists, and what is
currently being done about the problem.
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• Stress what gaps exist in addressing the problem that will be addressed by the
proposal.
• Remaining alternatives available when funding has been exhausted. Explain what
will happen to the project and the impending implications.
• Most important, the specific manner through which problems might be solved.
Review the resources needed, considering how they will be used and to what end.
One of the pitfalls to be avoided is defining the problem as a lack of program or facility (i.e.,
giving one of the possible solutions to a problem as the problem itself). For example, the lack of a
medical center in an economically depressed area is not the problem—the problem is that poor
people in the area have health needs that are not currently being addressed. The problem
described should be of reasonable dimensions, with the targeted population and geographic area
clearly defined. It should include a retrospective view of the situation, describing past efforts to
ameliorate it, and making projections for the future. The problem statement, developed with input
from the beneficiaries, must be supported by statistics and statements from authorities in the
fields. The case must be made that the applicant, because of its history, demonstrable skills, and
past accomplishments, is the right organization to solve the problem.
There is a considerable body of literature on the exact assessment techniques to be used. Any
local, regional, or state government planning office, or local university offering course work in
planning and evaluation techniques should be able to provide excellent background references.
Types of data that may be collected include historical, geographic, quantitative, factual, statistical,
and philosophical information, as well as studies completed by colleges, and literature searches
from public or university libraries. Local colleges or universities which have a department or
section related to the proposal topic may help determine if there is interest in developing a student
or faculty project to conduct a needs assessment. It may be helpful to include examples of the
findings for highlighting in the proposal.
Project Objectives: Goals and Desired Outcome
Once the needs have been described, proposed solutions have to be outlined, wherever possible in
quantitative terms. The population to be served, time frame of the project, and specific anticipated
outcomes must be defined. The figures used should be verifiable. If the proposal is funded, the
stated objectives will probably be used to evaluate program progress, so they should be realistic.
There is literature available to help identify and write program objectives.
It is important not to confuse objectives with methods or strategies toward those ends. For
example, the objective should not be stated as “building a prenatal clinic in Adams County,” but
as “reducing the infant mortality rate in Adams County to X percent by a specific date.” The
concurrent strategy or method of accomplishing the stated objective may include the
establishment of mobile clinics that bring services to the community.
Program Methods and Program Design: A Plan of Action
The program design refers to how the project is expected to work and solve the stated problem.
Just as the statement of objectives builds upon the problem statement, the description of methods
or strategies builds upon the statement of objectives. For each objective, a specific plan of action
should be laid out. It should delineate a sequence of justifiable activities, indicating the proposed
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staffing and timetable for each task. This section should be carefully reviewed to make sure that
what is being proposed is realistic in terms of the applicant’s resources and time frame. Outline
the following:
1. The activities to occur along with the related resources and staff needed to operate the project
(“inputs”).
2. A flow chart of the organizational features of the project: describe how the parts interrelate,
where personnel will be needed, and what they are expected to do. Identify the kinds of facilities,
transportation, and support services required (“throughputs”).
3. Explain what will be achieved through 1 and 2 above (“outputs”), that is, plan for measurable
results. Project staff may be required to produce evidence of program performance through an
examination of stated objectives during either a site visit by the grantor agency or foundation,
and/or grant reviews which may involve peer review committees.
4. It may be useful to devise a diagram of the program design. Such a procedure will help to
conceptualize both the scope and detail of the project.
Example:
Draw a three-column block. Each column is headed by one of the parts (inputs, throughputs, and outputs), and on the
left (next to the first column) specific program features should be identified (i.e., implementation, staffing,
procurement, and systems development). In the grid, specify something about the program design, for example,
assume the first column is labeled inputs and the first row is labeled staff. On the grid one might specify under inputs
five nurses to operate a child care unit. The throughput might be to maintain charts, counsel the children, and set up a
daily routine; outputs might be to discharge 25 healthy children per week.
5. Carefully consider the pressures of the proposed implementation, that is, the time and money
needed to undertake each part of the plan. Wherever possible, justify in the narrative the course of
action taken. The most economical method should be used that does not compromise or sacrifice
project quality. The financial expenses associated with performance of the project will later
become points of negotiation with the government or foundation program staff. If everything is
not carefully justified in writing in the proposal, after negotiation with the grantor agencies or
foundations, the approved project may resemble less of the original concept.
A Program Evaluation and Review Technique (PERT) chart could be useful and supportive in justifying some
proposals. Larger projects can easily be laid out using commercial off-the-shelf project or grants management
software. The software allows the project manager to construct a PERT chart that provides a graphical
representation of all tasks in the project and the way tasks are related to each other. Such project manager software
provides a variety of report formats that can be used to track project progress. The PERT chart and other related
reports can be maintained on a network of computers so that al project participants can access the latest project
information.
6. Highlight the innovative features of the proposal which could be considered distinct from other
proposals under consideration.
7. Whenever possible, use appendixes to provide details, supplementary data, references, and
information requiring in-depth analysis. These types of data, although supportive of the proposal,
if included in the body of the proposal, could detract from its readability. Appendixes provide the
proposal reader with immediate access to details if and when clarification of an idea, sequence, or
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conclusion is required. Time tables, work plans, schedules, activities, methodologies, legal
papers, personal vitae, letters of support, and endorsements are examples of appendixes.
Evaluation: Product and Process Analysis
An evaluation plan should be a consideration at every stage of the proposal’s development. Data
collected for the problem statement form a comparative basis for determining whether measurable
objectives are indeed being met, and whether proposed methods are accomplishing these ends; or
whether different parts of the plan need to be fine-tuned to be made more effective and efficient.
Among the considerations will be whether evaluation will be done by the organization itself or by
outside experts. The organizations will have to decide whether outside experts have the standing
in the field and the degree of objectivity that would justify the added expense, or whether the job
could be done with sufficient expertise by its own staff, without taking too much time away from
the project itself.
Methods of measurement, whether standardized tests, interviews, questionnaires, observation,
etc., will depend upon the nature and scope of the project. Procedures and schedules for
gathering, analyzing, and reporting data will need to be spelled out.
The evaluation component is two-fold: (1) product evaluation and (2) process evaluation.
“Product evaluation” addresses results that can be attributed to the project, as well as the extent to
which the project has satisfied its stated objectives. “Process evaluation” addresses how the
project was conducted, in terms of consistency with the stated plan of action and the effectiveness
of the various activities within the plan.
Most federal agencies now require some form of program evaluation among grantees. The
requirements of the proposed project should be explored carefully. Evaluations may be conducted
by an internal staff member, an evaluation firm, or both. Many federal grants include a specific
time frame for performance review and evaluation. For instance, several economic development
programs require grant recipients to report on a quarterly and annual basis. In instances where
there are no specified evaluation periods, the applicant should state the amount of time needed to
evaluate, how the feedback will be disseminated among the proposed staff, and a schedule for
review and comment. Evaluation designs may start at the beginning, middle, or end of a project,
but the applicant should specify a start-up time. It is desirable and advisable to submit an
evaluation design at the start of a project for two reasons:
• Convincing evaluations require the collection of appropriate baseline data before
and during program operations; and
• If the evaluation design cannot be prepared at the outset, then a critical review of
the program design may be advisable.
Even if the evaluation design has to be revised as the project progresses, it is much easier and
cheaper to modify a good design. If the problem is not well defined and carefully analyzed for
cause and effect relationships, then a good evaluation design may be difficult to achieve.
Sometimes a pilot study is needed to begin the identification of facts and relationships. Often a
thorough literature search may be sufficient.
Evaluation requires both coordination and agreement among program decision makers. Above all,
the federal grantor agency’s or foundation’s requirements should be highlighted in the evaluation
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design. Also, grantor agencies may require specific evaluation techniques such as designated data
formats (an existing information collection system) or they may offer financial inducements for
voluntary participation in a national evaluation study. The applicant should ask specifically about
these points. Also, for federal programs, consult the “Criteria For Selecting Proposals” section of
the CFDA program description to determine the exact evaluation methods to be required for a
specific program if funded.
Future Funding
The last narrative part of the proposal explains what will happen to the program once the grant
ends. It should describe a plan for continuation beyond the grant period, and outline all other
contemplated fund-raising efforts and future plans for applying for additional grants. Projections
for operating and maintaining facilities and equipment should also be given. The applicant may
discuss maintenance and future program funding if program funds are for construction activity;
and may account for other needed expenditures if the program includes purchase of equipment.
Budget Development and Requirements
Although the degree of specificity of any budget will vary depending upon the nature of the
project and the requirements of the funding source, a complete, well-thought-out budget serves to
reinforce the applicant’s credibility and to increase the likelihood of the proposal being funded.
The estimated expenses in the budget should build upon the justifications given in the narrative
section of the proposal. A well-prepared budget should be reasonable and demonstrate that the
funds being asked for will be used wisely. The budget should be as concrete and specific as
possible in its estimates. Every effort should be made to be realistic, to estimate costs accurately,
and not to underestimate staff time.
The budget format should be as clear as possible. It should begin with a Budget Summary, which,
like the Proposal Summary, is written after the entire budget has been prepared. Each section of
the budget should be in outline form, listing line items under major headings and subdivisions.
Each of the major components should be subtotaled with a grand total placed at the end. If the
funding source provides forms, most of these elements can simply be filled into the appropriate
spaces.
Generally, budgets are divided into two categories: personnel costs and non-personnel costs. In
preparing the budget, the applicant may first review the proposal and make lists of items needed
for the project. The personnel section usually includes a breakdown of the following items:
• salaries (including increases in multiyear projects),
• fringe benefits such as health insurance and retirement plans, and
• consultant and contract services.
The items in the non-personnel section will vary widely, but may include
• space/office rental or leasing costs,
• utilities,
• purchase or rental of equipment,
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• training to use new equipment, and
• photocopying, office supplies.
Some hard-to-pin-down budget areas are utilities, rental of buildings and equipment, salary
increases, food, telephones, insurance, and transportation. Budget adjustments are sometimes
made after the grant award, but this can be a lengthy process. The applicant should be certain that
implementation, continuation, and phase-down costs can be met. Costs associated with leases,
evaluation systems, hard/soft match requirements, audits, development, implementation and
maintenance of information and accounting systems, and other long-term financial commitments
should be considered.
A well-prepared budget justifies all expenses and is consistent with the proposal narrative. Some
areas in need of an evaluation for consistency are as follows:
• Salaries in the proposal in relation to those of the applicant organization should
be similar.
• If new staff persons are being hired, additional space and equipment should be
considered, as necessary.
• If the budget calls for an equipment purchase, it should be the type allowed by
the grantor agency.
• If additional space is rented, the increase in insurance should be supported.
• In the case of federal grants, if an indirect cost rate applies to the proposal, such
as outlined by the Office of Management and Budget (OMB) in Circulars such as
numbers A-122, A-21, and A-87 (see http://www.whitehouse.gov/omb/grants/
grants_circulars.html), the division between direct and indirect costs should not
be in conflict, and the aggregate budget totals should refer directly to the
approved formula.
• If matching funds are required, the contributions to the matching fund should be
taken out of the budget unless otherwise specified in the application instructions.
In learning to develop a convincing budget and determining appropriate format, reviewing other
grant proposals is often helpful. The applicant may ask government agencies and foundations for
copies of winning grants proposals. Grants seekers may find the following examples of grants
budgets helpful:
• Getting Your Grant Proposal Budget Right
http://nonprofit.about.com/od/foundationfundinggrants/a/grantbudget.htm
• Grant Space, Knowledge Base: Examples of Nonprofit Budgets
http://foundationcenter.org/getstarted/faqs/html/samplebudget.html
• Proposal Budgeting Basics
http://foundationcenter.org/getstarted/tutorials/prop_budgt/index.html
• Sample Budget Form (National Endowment for the Humanities)
http://www.neh.gov/files/grants/sample-budget-january-2014.pdf
In preparing budgets for government grants, the applicant may keep in mind that funding levels of
federal assistance programs change yearly. It is useful to review the appropriations and average
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grants or loans awarded over the past several years to try to project future funding levels: see
“Financial Information” section of the CFDA program description for fiscal year appropriations
and estimates; and “Range and Average of Financial Assistance” for prior years’ awards.
However, it is safer never to anticipate that the income from the grant will be the sole support for
larger projects. This consideration should be given to the overall budget requirements, and in
particular, to budget line items most subject to inflationary pressures. Restraint is important in
determining inflationary cost projections (avoid padding budget line items), but the applicant may
attempt to anticipate possible future increases.
For federal grants, it is also important to become familiar with grants management requirements.
The CFDA identifies in the program description OMB circulars applicable to each federal
program. Applicants should review appropriate documents while developing a proposal budget
because they are essential in determining items such as cost principles, administrative and audit
requirements and compliance, and conforming with government guidelines for federal domestic
assistance. OMB circulars are available in full text on the web at http://www.whitehouse.gov/
omb/grants/grants_circulars.html.
To coordinate federal grants to states, Executive Order 12372, “Intergovernmental Review of
Federal Programs,” was issued to foster intergovernmental partnership and strengthen federalism
by relying on state and local processes for the coordination and review of proposed Federal
financial assistance and direct federal development. The executive order allows each state to
designate an office to perform this function, addresses of which may be found at the OMB
website at http://www.whitehouse.gov/omb/grants_spoc. States that are not listed on this web
page have chosen not to participate in the intergovernmental review process. If the applicant is
located within one of these states, he or she may still send application materials directly to a
federal awarding agency.
Proposal Appendix
Lengthy documents that are referred to in the narrative are best added to the proposal in an
appendix. Examples include letters of endorsement, partial list of previous funders, key staff
resumes, annual reports, statistical data, maps, pictorial material, and newspaper and magazine
articles about the organizations. Nonprofit organizations should include an IRS 501(c)(3) Letter
of Tax Exempt Status.
Additional Proposal Writing Websites
GrantSpace, Knowledge Base, How do I write a grant Proposal?
http://foundationcenter.org/getstarted/faqs/html/proposal_writing.html
Proposal Writing Short Course (Foundation Center)
http://fdncenter.org/learn/shortcourse/prop1.html
Sample Proposals (SchoolGrants.org)
http://www.k12grants.org/samples/
Tips on Writing a Grant Proposal (Environmental Protection Agency)
http://www.epa.gov/ogd/recipient/tips.htm
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Writing a Successful Grant Proposal (Minnesota Council on Foundations)
http://www.mcf.org/mcf/grant/writing.htm
Writing a Winning Grant Proposal (Education Money) http://www.educationmoney.com/
federal_write_proposal.html
Author Contact Information
Merete F. Gerli
Information Research Specialist
mgerli@crs.loc.gov, 7-7109
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