Sample Budget
In this sample budget, the New Mexico Early Childhood Training Association (a fictitious organization based in Santa Fe, NM) is applying to the Brindle Foundation for funding to support three trainings of early childhood educators they will do over the calendar year 2020. The costs they incur to do these trainings are considered “direct costs.” In the following narrative, please find relevant details that are used to describe the budget that accompanies their proposal request.
- Their director earns $60,000 annually and the staff members each earn $45,000. Each of these individuals will use 5% of their time to prepare for and conduct the trainings, with the assistance of a consultant who will do the background research and pull the materials together that they will use to train.
- They have an organizational fringe benefit rate of 8% and the consultant they will use for this work earns $350 per day.
- They will also be hiring two bi-lingual interpreters for this work, but are not requesting that Brindle cover these fees.
- Two of the trainings require travel; one does not. For the trainings that require travel, the three individuals involved will all travel together since they live in the same location.
- One of their trainings is in Las Cruces and they will have to pay for accommodations and rent the facility downtown where they will be conducting the training.
- One of their trainings is in Taos, and they will drive back and forth to Taos from Santa Fe each day.
- The third training is in Santa Fe so there is no travel required. - The organization needs to buy a projector that costs $850, but have already earmarked $150 to do so; they need to request the remaining $700 from Brindle.
- The organization will be responsible for lunch for each of the 3 trainings and the local organization hosting them will serve coffee and snacks at a mid-morning and mid-afternoon break.
To further our own learning, Brindle is interested in understanding more fully the costs organizations are managing in order to do what they do. For this reason, as the foundation explores ideas about how best to support organizations, it is helpful for us to know an estimate of the most expensive costs incurred for what your organization requires to do its work overall. With this in mind, please note what the NM Early Childhood Training Association’s top 5 indirect costs are in Box B.
For indirect costs, the organization may request up to 15% of the total direct costs. In the example above, the total amount of the grant earmarked for direct costs and requested of Brindle, is $13,805.00. The maximum amount for indirect costs that the organization can request in their proposal to Brindle is a maximum of 15% of their direct costs.
Since 15% x $13,805 is $2,070.75 (indirect costs), that number, when combined with the direct costs (in this case $13,805.00) is $ 15,875.75. Therefore, $15,875.75 is the maximum total grant proposal amount.
In this particular case, the organization has chosen to round their request to $2,000 for indirect costs, so entered that number on the form below. As a result of adding their direct and indirect cost requests, their total request of Brindle is $15,805.
Finally, because it is helpful to know ways in which non-profit organizations earn revenue, we are asking you to share with us a snapshot of funds received in a typical year.
Please see the NM Early Childhood Training Association’s yearly estimate of revenue received in Box C.
Please note that this example is intended to help you have a model to follow which we hope is both relevant and helpful. Please feel free to reach out at any point to Mary Nell (marynell@brindlefoundation.org) if you have questions or want to discuss any aspects of how you are constructing your budget.