Grant Budget Narrative
The prompt
$18
Why this works
Grant budget narratives that explain the basis for each cost rather than just restating the numbers give program officers confidence that the budget is well-reasoned and will be managed appropriately. The personnel section is the most scrutinised element — funders want to know that the FTE allocation reflects the actual time commitment, not just a cost-covering exercise. Addressing indirect costs proactively prevents the funder from seeing overhead as an unexamined overhead grab.
Risks & review
Grant budget narratives must align exactly with the budget spreadsheet — any discrepancy between the narrative explanation and the numbers will raise questions during review. Before finalising, cross-check every number mentioned in the narrative against the actual budget spreadsheet. Also ensure your indirect cost rate is either your federally negotiated rate or documented as a de minimis rate, as undocumented overhead rates are a frequent audit finding.