Budget Information

Budget Development for Proposals

It is extremely important to calculate the costs involved (projected) for the project for which a grant application is being submitted.

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 https://research.iu.edu/funding-proposals/proposals/budgets/rates.html

Budgets 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.

More information available here.

Contributing 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.

IU's policy on Cost Sharing can be found here.

Internal Grants for Summer

If you will be requesting the full grant amount for summer salary and the calculation (AY salary x .025 x 8 weeks x 27% fringe) works out to more than $8500 for a Faculty Research Grant or $3000 for a Curriculum Development grant, use the following numbers:

FRG Salary $6,693 Fringes $1,807 for a total request of $8,500

CDG Salary $2,363; Fringes $637; for a total request of $3,000

Excerpts from the IU Research Policy Manual

  • Academic year or fiscal year salary for faculty may be included in a grant only on a released time basis with a like reduction in General Fund support for the period.
  • Summer support may be included following current summer pay guidelines (see SUMMER SALARY below)
  • Occasional short-term consulting funds may be included for IU faculty members from other departments or from separate or remote operations of the same unit
  • Funding for current research appointees named in the application must follow University salary policies, which specify, among other things, that rate increases are permitted only on anniversary dates of appointment, and that justification must be provided for extraordinary increases

In preparing external funding proposals, keep the University's policy on extra compensation in mind. Section 6 of the policy is quoted from the Academic Handbook, p.47:

"Faculty members devoting part time to projects supported by contracts and grants will receive General Fund salary support only for that portion of their time devoted to regular University programs of instruction and research. In no case will the total salary components from General Fund and contract or grant sources exceed 100 percent of the faculty member's normal, budgeted salary rate."

Questions regarding compensation and extra compensation for work on IU-administered grants and contracts should be directed to Contract and Grant Administration at (812) 855-5326 or the Office of Academic Affairs and Dean of the Faculties at (812) 855-2809.