Budget and financing plan

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[edit] Idea and systematization

Systematic structure of the budget plan

The budget plan is the computational heart of the project application. It looks always a little bit different according to the donor and ordinarily its structure cannot be changed. An example of a foundation should clarify the way of thinking behind this kind of planning. Foundation X wants to achieve through this form that you inform in detail what the project costs are, what your contribution to the project is and in what way the costs will be combined. But it is there for your own good as well, because help you to have a clear overview of the finances at any given moment and a better structured and precise organization of the costs and sources.

[edit] Calculation of the total costs according to the type of expenditures

The types of expenditures tell you line by line what the money will be spent for. 

The total costs will fill in the column 1 of the budget and financing plan, line by line for each type of expenditure. Just to be sure, you can also keep a little buffer in case of unexpected or alternative expenditures.

The total amount often consists of various operands which are to be clarified in detail. For example in the fields “Travel costs/ Excursions”, “Accommodation” or “Meals” you are supposed to state the number of persons and costs pro person. This can be made either in the table or on an extra paper. It is a very simple math, so no stressing about.

[edit] Material costs

This is a general term for everything what isn’t connected to the personnel costs.

  • Space/ rental costs
  • Travel costs/ excursions
  • Accommodation
  • Catering
  • Insurance/ Visa/ Voucher: Health insurance for foreigners, Liability of insurance for organizer, Visa costs
  • Copying/ Office supplies
  • Materials required for the project, including films and photography
  • Mail/ Internet/ Telephone/ Fax
  • PR/ Advertising
  • Acquisition costs: items that have to be obtained: books, teaching material, CDs, cameras, keyboards
  • Other

[edit] Personnel costs

Usually the donors don’t like to take over these costs. Institutions, which don’t work voluntary, calculate with expenditure of human effort.

  • Expense allowance for a third party, for example for a referent

Attention: The individual contracts are often classified as material costs; e. g. making of a website belongs to “PR/ Advertising”.

[edit] Columns in the budget plan: where does the money come from?

The columns answer the question: What sources does the money come from?

After scheduling the total costs of the project you are going to distribute the sum in the columns. Important supporting resources are:

  • Payments from the participants/ target group and own resources
  • In-kind contribution
  • Financial support of a third party (funds requested from a Foundation X or somewhere else)

[edit] Own resources and participation fees

The expenditures are borne by your team or participants, for example when you and your participants pay for your travel costs to a seminar by your own.

Attention: Sometimes the funds from other donors are considered for own resources whereas some of the requested donors want to know it exactly. In that case there is an extra column in the budget plan such as in the example.

[edit] In-kind contributions

Any non-cash input which can be given a cash value. Everything that you can use for free but it has some value, such as room, copy or fax machine. More to this topic: In-kind contribution

[edit] Financial support of a third party

Costs borne by other persons or organizations, for example a financial support or contribution from another foundation.

[edit] Requested resources

The costs which are to be paid by the money you requested.

[edit] Total costs

You can re-check mathematically whether your calculations are right: the sum in the columns 3 to 6 must equal Total (column 2). Important: You need just as much resources as much you are going to spend.

[edit] Example: budget plan

Type of costs 1 Total costs of the project 2 Payments of the participants 3 In-kind contribution 4 Resources requested or granted somewhere else 5 Resources requested at the Foundation X
1.1 Rental costs 250€ 0 100€ 0 150€
1.2 Travel costs 0€ 0€ 0€ 0 0€
1.3 Accomodation 0€ 0€ 0€ 0 0€
1.4 Meals: 25€ x 10 persons x 3 days 750€ 100€ 100€ 0 550€
1.5 Insurance 0€ 0€ 0€ 0 0€
1.6 Copy costs/Materials 50€ 0€ 0€ 0 50€
1.7 Dispatch/Internet/Telephone/Fax 100€ 0€ 30€ 30€ 40€
1.8 PR/promotion 75€ 0€ 0€ 20€ 55€
1.9 Asset costs 0€ 0€ 0€ 0€ 0€
1.10 Other 50€ 0€ 0€ 20€ 30€
1.1-1.10 Total non-personnel costs 1275€ 100€ 230€ 70€ 875€
2.1 Expense allowance for Third 0€ 0€ 0€ 0€ 0€
2.1 Personnel costs 0€ 0€ 0€ 0€ 0€
TOTAL PROJECT COSTS: 1275€ 100€ 230€ 70 875€
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