Budget Preparation

The Proposal Budget

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 and allowable costs.

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.