# Grant budget narrative template

One block per budget category. Every line item inside a category answers the same three questions: calculation basis (the arithmetic), purpose (the activity it serves), and allocation (how a shared cost is split to this project). Keep the budget spreadsheet as the single source of numbers; the narrative explains, it never restates totals the spreadsheet already shows.

## The three-question pattern

For each line item, complete:

- Basis: [unit] x [quantity] x [rate], with the rate's source (payroll, current IRS mileage rate, vendor quote, published price).
- Purpose: the narrative activity this cost delivers, in the program plan's own words.
- Allocation: for any cost shared with other programs or funders, the split method (FTE share, square footage, usage count) and the share charged here.

A line that cannot complete all three is not ready for the narrative; fix the budget first.

## Category blocks

### Personnel

[Title] ([name if known]) at [FTE share] of a [$ annual salary] annual salary = [$ charged]. Basis: effort estimated from the activity plan ([hours per week] on [activities]). Purpose: [activities delivered]. Allocation: remaining effort is charged to [other funding source]; total effort across all funders is [percent, at or under 100].

Repeat per position. Confirm every named role also appears in the program narrative.

### Fringe benefits

Fringe at [rate] percent of salaries charged to this project ([$ base] x [rate] = [$]). Basis: the organization's documented composite rate covering [what the rate includes]. Fringe is computed on the salary charged to this grant, never on full salaries.

### Travel

[Trips or miles] x [rate with source] = [$]. Purpose: [program activity requiring travel]. Local mileage uses the current IRS standard rate; conference or training travel names the event and who attends.

### Equipment and supplies

[Item] x [quantity] x [unit price with quote source] = [$]. Purpose: [activity]. Check the funder's equipment threshold; items above it may need their own justification and useful-life note.

### Contractual

[Contractor or service] for [deliverable] at [$, with the basis: daily rate, fixed fee, or unit price]. Purpose: [activity]. State how the rate was established (competitive quotes, prior contract, published rate).

### Other direct costs

[Item]: [basis arithmetic] = [$]. Purpose: [activity]. Allocation: [split method] where shared.

### Indirect costs

[Rate] percent of [base definition] = [$]. Basis: [negotiated rate agreement with date, the federal de minimis election, or the funder's own overhead policy]. For federal awards without a negotiated rate, the de minimis election applies up to 15 percent of modified total direct costs; state the MTDC exclusions you removed from the base. For foundations, cite the funder's own policy instead.

## The alignment pass

Before submission, check the finished narrative against the other documents:

- [ ] Every activity in the program narrative has at least one budget line, and every line names an activity that exists in the narrative.
- [ ] Personnel names, titles, and effort levels match the program narrative exactly.
- [ ] Participant counts used in per-unit math match the counts in the needs statement and outputs.
- [ ] Multi-year requests explain each year separately and declare any inflation assumption.
- [ ] The narrative explains basis and purpose without restating spreadsheet totals.
- [ ] The funder's own budget form, category names, and caps override this structure wherever they differ.