It is extremely important to calculate the costs involved (projected) for the project for which a grant application is being submitted.
Budget Development for Proposals
- Identifying Salaries and Wages
Identify the personnel who will be involved with the conduct of the project and determine the percentage of effort required. The salary amount is calculated by multiplying the percentage of effort by the individual salary. (example: 30% effort x $100,000 salary = $30,000)
- Academic and Professional Staff salaries should be calculated in percentages. Clericals and students should be hourly.
- If you are taking course release time, calculate at 25% per course.
- If you are not taking course release time the maximum amount you can use is 25%.
- Fringe benefits must be included as a line item in any budget including salary. Find the current fringe rates at http://researchadmin.iu.edu/GrantContract/gc-propprep/gcs_rates.html
- Creating a BudgetBudgets are critical components of the proposal because they provide insight into project management as well as defining the amount of funding necessary to conduct the project. A reviewer can determine a great deal about a project based on a budget. Budgets are generally one of the review components and can help or hinder the final outcome of your proposal review.
- Policy on Cost ShareContributing a portion of the salaries, fringe benefits, and applicable indirect costs can usually provide the cost share. The cost share may also be made by the contribution of other direct cost items such as supplies, printing and duplicating, or travel. If these types of items are used for matching, adequate documentation must be available for audit purposes.
- Traveling by Personal Car
- Mileage Rates
- Accumulated Mileage Reimbursement
- Approved Drivers
- Matching Funds / Cost ShareThe amount that IU or outside agencies will contribute to the project, if funded. This can be a cash amount (i.e. $200 for travel or salary), or an in-kind amount (i.e. $200 in rental fee for outside hall donated to project). Projects which require matching funds from the University must have the amounts and sources identified in the proposals and must have the appropriate approvals on the Route Sheet.