Defining certain terms in a budget

Get Specific Grants relevant to your Country & Areas of Work. Learn how

…Continued from the Main Page

Here we discuss some commonly used terms in a budget and try to define them:

75% Discount on Premium Membership (Ad)
For a limited time only, this discount offer gives you exclusive access to all the Premium Standard features for NGO grant success. Join Today.
 

Contingency Amount: Contingency amount refers to the money set aside to cover any unforeseen expenses of the organization or the project. Contingency expenses are required because any organization or a project can face an uncertainty because of which certain costs are incurred. As a standard practice, the contingency amount is usually 10% of the total budget.

Monitoring & Evaluation Costs: Some budget formats seek specific information about costs proposed by NGOs for monitoring and evaluation of the project.

Overhead Costs: Overhead costs are expenses that are required for running the organization. These expenses may not be directly contributing towards implementing a project but they are still essential to maintain the office and manage the day-to-day affairs of the organization. Usually, these costs should not exceed more than 10% of the total budget in any good proposal.

Searching for the fastest way to write proposals? (Ad)
We have an extensive database of sample proposals from successful grantee organizations from around the world offering project ideas, proposal writing techniques and planned strategies. Join Premium to view Sample Proposals
 

R&D expenses: R&D or Research and Development expenses refer to those expenses required by the organization or a project to undertake research, assessment and consultation for the intervention. In some projects, it could be just be part of the initial work or in some others, it could remain a continuous activity.

Start-up Costs: Start-up costs relate to the expenses incurred by the organization initially for launching a project or developing the organization. For new projects or organizations, activities such as office set-up, staff recruitment, orientation, pre-feasibility studies etc all fall under the Start-up Costs.

Unit Cost: Unit cost is the cost of a single item or a unit. It could be per day cost of a staff member or a consultant or single cost of a computer machine.

Are you overwhelmed with too much grant information? (Ad)
Join Premium and view relevant grants and resources on a clean, ad-free and user-friendly Member Dashboard to organize and plan your successful fundraising. Learn more
 

What is "Unit Cost" in a Budget?