Management Minute: Common Budgeting Mistakes in the Grant Application Process
Arnold Ramirez: Let's discuss some of the common errors that recipient organizations make in developing and submitting their budget in the grant application process.
One of those areas is in in-kind contributions, or non-federal match, specifically related to volunteers. Keep in mind that you should value the service provided and not the volunteer.
In other words, if a dentist comes in to read to a classroom, value that service as a teacher or a teacher assistant position, but not as a dentist.
The other area is related to cost categories. Some recipient organizations may value a laptop in an equipment category, but from the federal perspective, it is actually a supply.
Make sure that, as you're developing the budget, you keep those cost categories within the federal definitions of that particular item.
CloseA Head Start fiscal specialist identifies common budgeting mistakes in the grant application process. These include how to value in-kind contributions and how to assign expenses to their appropriate cost categories. Learn more about best practices in budgeting in the iPD course Financial Essentials 2: Phases of Budget Development.