---
title: "Budget Narrative Guidance"
slug: "budget-narrative-guidance-final"
updated: 2026-03-10T21:57:28Z
published: 2026-03-10T21:57:28Z
canonical: "docs.bcyfund.org/budget-narrative-guidance-final"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bcyfund.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Budget Narrative Guidance

## **Purpose**

A budget narrative is a brief justification for **each** budget line item. It should connect the expense to your mission and program activities, and must include both **qualitative context** (WHY you need it) and **quantitative detail** (HOW you calculated the amount).

Use the guidance below to ensure your budget narrative includes all necessary components for approval. **Please be aware that the Grants Management System stipulates that every budget narrative must be formatted as a single paragraph without any line breaks.**

Grantees are encouraged to review the provided [templates](https://docs.google.com/document/d/1LsB3E58bST0grfohQJt5Q4Zc4YLuVMPhzapXS0ETI1w/edit?tab=t.0) for guidance and examples if they need assistance in developing their budget narratives.

## **Budget Narrative Guidance by Expense Type**

| **Expense Type** | **Budget Narrative Guidance** |
| --- | --- |
| Personnel (Salary & Wages) | · Name and title/position of each person. · Describe the responsibilities of personnel listed. Be specific about their program-related activities. · Salary by person. · Percentage of effort for personnel listed (how much of their time is chargeable to the BCYF grant i.e., 50%, 75%). · Multiply the percentage of effort times the salary and fringe by personnel. · The total after application of effort should agree to the budget line amount. **Example:** “BCYF funds will support **Jordan Lee, Program Coordinator**, who manages daily STEM sessions, family outreach, and volunteer oversight. Jordan’s annual salary is **$60,000**. The grant will support **50% effort** dedicated to BCYF-funded activities, including lesson planning, facilitator support, and data tracking. Calculation: $60,000 × **50%** = **$30,000**. This role is essential to consistent program delivery and participant engagement.” |
| Fringe Benefits | · Summary of Personnel, including: Name and title/position of each person, salary, and the level of effort allocated to the BCYF grant. · Multiply the percentage of effort times the estimated fringe expense. · Examples of Fringe expenses to be individually calculated: - Employer paid taxes (FICA, FUTA, MD unemployment). - Worker’s compensation employer payment. - Employer-sponsored benefits plans (including medical benefits, dental, vision, retirement matching contributions, disability insurance, and life insurance plan). · Ensure to base Fringe benefit estimate on a current invoice dated within the prior 12-month period. · Reference the [Allowable Costs Reference Guide](/grants-manual/docs/allowable-costs-reference-guide#allowable-costs-guide) for a list of exclusions. **Example:** “BCYF funds will support **Jordan Lee, Program Coordinator**, who manages daily STEM sessions, family outreach, and volunteer oversight. Jordan’s annual salary is **$60,000**. The grant will support **50% effort** dedicated to BCYF-funded activities, including lesson planning, facilitator support, and data tracking. Calculation: $60,000 × **50%** = **$30,000**. This role is essential to consistent program delivery and participant engagement. Fringe benefits for the 50% allocation are calculated as follows: FICA at $30,000 × 0.0765 = $2,295; FUTA at $30,000 × 0.006 = $180; employer-paid medical benefits at $400 per month, totaling $3,600 annually × 50% = $1,800; employer-paid dental benefits at $40 per month, totaling $360 annually × 50% = $180; and employer-paid retirement match of $1,000 annually × 50% = $500, resulting in total fringe benefit expenses of $4,955.**”** |
| Consultant/Contractor services | · List each consultant by name or business name. · Describe the services provided by the consultant and how these services will directly impact the program. · Payment structure (per hour, daily rate, or monthly). · For each payment structure, outline the total amount for each consultant. · Rate per hour should include the total number of hours per month X the rate per hour. · Daily Rate should include rate per day X total number of days. · Monthly rate should include the monthly rate X the number of months. |
| Staff Travel & Training | · List training registration fees. · Travel cost (air, train, car rental). · Mileage reimbursement – includes mileage rate and estimated mileage. · Per diem and hotel costs. |
| Space Rental | **·** List the rental location. · Type of property. · Lease agreement monthly expense and sum to annual amount owed. |
| Utilities | · List by utility type – BGE, Comcast, etc. · Provide support for the budget amount requested. For example, your average utility bill from the prior year or your monthly budget billing amount. |
| Printing/Copying | · Describe the services that you intend to utilize in the program. · Provide the annual amount. · Provide the allocation rate, if applicable (i.e. 25%, 50%, 100%, etc.). |
| Communications | · List each communication service separately and the purpose of the service. · Provide the annual amount for each service. · Provide the allocation rate if applicable (i.e. 25%, 50%, 100%, etc.). · If services are provided by a consultant, **see** **Consultant/Contractor services** **above.** |
| Participant Expense | · List the type of expense and the benefit to the program. · Provide the calculation of your annual budget amount. For example, the cost per type of expense X number of participants. |
| Transportation | · List the type of expense and the benefit to the program. · Provide the calculation of your annual budget amount. For example, the cost per type of expense X number of participants. |
| Materials and Supplies | · List supplies separately by type/item (Markers, Robotics Kits, or Flip Charts, etc.). · Provide the average cost per item and the amount you plan to purchase. · The total of all items listed should match the budget line amount. Example: “To deliver hands-on robotics labs for 60 youth, we request program supplies including **Robotics Kits** (20 kits × **$120** = **$2,400**), **Safety Goggles** (60 × **$8** = **$480**), **Markers & Flip Charts** for instruction (**$300** total), and **Batteries** for devices (10 packs × **$12** = **$120**). These consumables directly support weekly instruction and safe participation. **Total supplies: $3,300**, which equals the amount requested on this budget line.” |
| Equipment | · List and describe each piece of equipment separately with the applicable cost. **If equipment** **w****ith a unit cost over $1k** **are** **planned, prior** **PO** **approval is required before the budget will be approved.** Please note approval in the narrative. |
| Project Partner Fees | · List your fiscal sponsor fee amount per your fiscal sponsor agreement. **If you have a fiscal sponsor, this should always be included in your Annual Award Budget.** |
| Marketing, Advertising, and Recruitment | · List each expense separately. · Describe how each expense is necessary for the performance of the sponsored program. · Provide the allocation rate, if applicable (i.e., 25%, 50%, 100%, etc.). |
| Stipends | · List each Stipend separately. · Describe the purpose and benefit to the program. · Provide the allocation rate, if applicable (i.e., 25%, 50%, 100%, etc.). · Provide the total amount charge to BCYF. |
| Other | · List other expenses that do not fit into the budget categories listed above. · Describe the purpose and benefit to the program. · Provide the allocation rate, if applicable (i.e., 25%, 50%, 100%, etc.). · Provide the total amount charge to BCYF. |
| Administrative/Indirect Costs | · Only allowable for organizations with a $750k+ budget annually. · 15% limit of Annual Award Amount. · Provide allocation method for management and general admin costs relating to the overall function of the organization but not attributable to the grantee program. See [Indirect Cost Policy](/grants-manual/docs/indirect-cost-policy#1-eligibility-for-indirect-costs) for further details. |

## **Summary**

**The chart above and budget template are examples to assist you with developing your budget narrative. Remember the following as you complete your narrative:**

● A narrative is a written justification for the budget line amount you are requesting.

● Be specific and detailed - **no one-word entries**.

● Your description and justification should help BCYF and the Financial Technical Assistance team understand the benefit to your program.

● Include calculations to validate and justify the amount requested per budget line.