Justifying Your Budget

The body of your research proposal is meant to demonstrate that your project is sorely needed and an innovative approach to research. It's also meant to position you, the PI, as the quintessential researcher to pull it off. But, the budget and budget justification are where you build credibility and confidence in your reviewers and the agency that you will be able to pull this off. It's where you show that you're also the quintessential project manager.

Follow the rules:
Sponsors usually outline the format they want to see in your budget justification. Be sure to read through your grant application guide and to include all the information the sponsor asks for in the budget justification. The sponsor and your institution also have rules around allowable costs. Be sure to check that all of your budget items are allowed, or they'll be a no-go and make it look like you didn't do your homework if unallowable costs slip through in your submission.

Connect your budget with goals:
If your budget doesn't outline and prioritize costs that directly allow you to meet your project goals, that is a red flag. Make sure that your budget reflects your project and what you've said was important and then make those links between goals and costs in your budget justification.

Stick to your budget order:
Again, check your application guide for the format for your budget and budget justification and follow those rules to a T. But, in addition to that, if the guidelines do not offer you rules on order of budget and budget justification, make sure to follow the same order in both. This makes it easy for your reviewers to go back and forth between budget and budget justification.

Elaborate on costs that may not be clear:
If there are items in your budget where your need for them isn't abundantly clear, take extra time to communicate your need and/or describe the items. Or, if you need equipment at a certain quality level that costs more than other versions, you may want to explain in your justification why you need the version you need.

Make sure all costs are reasonable:
It's true that oftentimes when you're awarded a grant, it comes with a budget cut in a negotiation with your Program Officer. This reality can make it tempting for PIs to pad their budget to soften the blow when they're cut. But, resist padding! The truth is that your budget and budget justification are a reflection of you as a project manager and if your budget isn't frugal, that will reflect on you. Most reviewers and POs know when something is padding, so it's more likely your budget will get cut more significantly when they see it.

The budget justification is certainly not an exciting part of your proposal, but it is still essential in showing your competence and skill-level, so make it clear and informative!

Resources:
Grant Writing: How to Build Credibility with Your Budget Narrative - Grants.gov
Budget Justifications - University of California, Irvine