In a proposal, the budget narrative, also known as the budget justification or budget explanation, provides detailed explanations for each line item and cost included in the budget. It is a critical component of the proposal, as it helps reviewers and decision-makers understand the rationale behind the proposed budget and ensures transparency in how the funds will be utilized.
The budget narrative typically follows the budget table or budget summary section in the proposal. It is organized in a way that corresponds to the budget table, so that each line item in the budget has a corresponding explanation in the budget narrative.
The proposal structure may vary depending on the specific requirements of the funding agency or organization. However, a common structure for a proposal with a budget narrative is as follows:
Cover Page
Executive Summary/Abstract
Project/Program Description
Goals and Objectives
Methodology/Approach
Budget Summary or Budget Table
Budget Narrative/Budget Justification
Explanation for each line item in the budget table (e.g., personnel, travel, equipment, supplies, etc.)
Detailed breakdown of costs
How each cost is necessary for the successful implementation of the project
Any cost-sharing or matching funds, if applicable
Any cost considerations or contingencies
Organizational Information (background, capacity, past performance, etc.)
Evaluation Plan (if required)
Sustainability Plan (if required)
Appendices (supporting documents, letters of support, resumes, etc.)
Please ensure that you follow the formatting and submission guidelines provided by the funding agency or organization when submitting your proposal. It is important to adhere to any specific requirements regarding the placement of the budget narrative to ensure that your proposal is considered compliant. Moreover, the budget narrative should be clear, concise, and directly support the information provided in the rest of the proposal.
