How to Include Administrative Expenses in Your Grant Budget
How to Include Administrative Expenses in Your Grant Budget
When you’re writing a grant application, it’s important to know how much administrative expenses you should include in your budget. Administrative expenses, or indirect costs, cover things like salaries, rent, and utilities, but funders can be very particular about how much they want you to allocate to these costs. In this post, I’ll cover three key strategies to help you make sure your budget is balanced and funder-friendly.
1. Research the Funder’s Guidelines
Funders often set clear limits on how much of their money can go toward administrative expenses. Some might allow up to 15%, while others cap it at 10% or less. Always make sure you understand their rules before you submit your application.
2. Calculate Indirect Costs Accurately
Administrative expenses, or overhead, are typically a percentage of your organization’s overall operating costs. Use a percentage-based approach, taking into account how much of the organization’s resources will be used for the project. You’ll want to make sure the calculation is accurate and realistic.
3. Be Transparent
Funders appreciate when applicants are upfront about how their money will be spent. Clearly breaking down your administrative costs and justifying their necessity will go a long way in gaining their trust.
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