I often hear nonprofit EDs and grant writers lament that program grants are so limiting and that their organization already has enough money for program supplies. They need money for salaries and overhead costs.
The solution to this issue lies with the grant writer.
There are no hard and fast rules about what can be included in “program expenses.” Some grants will specify that the funding will not support salaries or consultants, but most program grants are fairly open to expenses the organization deems program-related.
I am often awarded grants for my clients that pay a portion of one or more salaries and other expenses that some consider “overhead.”
I apply this strategy…
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I approach program grants with this mindset: If the expense is directly related to the program’s impact, I include it. The important part of this is justifying the expense in the narrative. Each line of the budget should tie directly back to the narrative. I love when proposals allow for a specific budget narrative. I explain every expense in detail so there is no doubt about its importance to the program.
I include the following expenses in program grant budgets:
- Direct program costs (supplies, permits, printing costs, fees, anything that is directly and clearly necessary for delivery of services)
- Personnel costs (salaries and fringe benefits, consultants, anyone who directly provides the service)
- Travel costs (site visits, home visits, etc)
- Equipment (anything you need to buy to execute the program- either one time or ongoing)
- Consultants (counselors, presenters, etc)
- Facility Costs (the location where services are provided)
- Background checks (especially important for programs for kids)
- Evaluation and Reporting (software for data collection, costs for developing evaluation tools, etc)
- Include indirect program costs, like admin expenses, just don’t ask for grant funding for them.
Some of these expenses can be considered general operating expenses, but I make a strong case for them. The worst thing that can happen is the funder requesting that the funds not be used for one purpose or another.
I have found a few factors that increase my chances of being awarded money for salaries:
- Keep the salary ask to 20% or less of the total grant ask. For example, if I am asking for $50,000, my salary ask will be $10K or less. You should still include the total staff expenses, just don’t ask for more than 20%.
- When writing the narrative, emphasize the role of staff members and their importance. Without the staff, there is no program—drive that point home.
- Separate the fringe benefits from salaries on a new line item.
Read the grant funding guidelines carefully and ask for what they will fund. If they don’t disqualify salaries or other program expenses, go for it!
A closed mouth never gets fed.
Until next time,
Write Epic Grants
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