A strong budget shows that your organization has planned realistically, understands current market costs, and can manage grant funds responsibly. Use the BCYF Budget Narrative Guidance and supplemental budget templates, in addition to the information below, when preparing your Annual Grant Award Budget.
You may include expenses even if details aren’t finalized, as long as you provide a clear rationale and basis to explain how you arrived at the estimate.
It is important to distinguish between estimates and placeholders, especially when working with government funds:
Estimates - Acceptable when supported by reasonable assumptions and documentation. (Example: projecting the cost of a staff retreat based on anticipated participants and known venue rates.)
Placeholders - Not allowable. These are funds reserved without a defined activity, basis, or rationale.
Start With Accurate, Market-Based Cost Estimates
Gather vendor quotes or estimates for major expenses (e.g., consultants, payroll, supplies).
Note: Equipment purchases of $1,000 or more must be approved by your Program Officer before budget submission. This approval must also be submitted with the expense in your Monthly Financial Expense Report.
Ensure costs reflect current market rates, not outdated or generic estimates. Therefore, we recommend that all estimates obtained are within a current 12-month timeframe and represent the mid-range of estimates.
Retain documentation, when possible, to justify amounts, though submission of these documents is not required within the BCYF budget process.
Travel Estimates
When estimating travel costs, consider:
| Use the following standard when estimating:
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Use Competing Bids When Appropriate
For larger program costs:
Obtain at least two competitive estimates to demonstrate cost reasonableness.
Compare vendors based on:
Price
Qualifications
Quality of services
If you select a vender with a higher quote, briefly explain your reasoning (e.g., specialized expertise, preference for a local Baltimore vender).
If No Contractor or Vendor Has Been Selected Yet…
Estimate costs based on:
Recent quotes for similar work
Published market ranges
Your organization’s past projects with comparable scopes
Include in your Budget Narrative that this line item is “estimated - based on market research” until a vendor is confirmed. Avoid underestimating, as this can lead to overspending relative to your approved budget.
SUMMARY A strong grant budget is:
Providing clear rationals for your cost estimates—whether based on vendor quotes, market comparisons, or historical data—helps BCYF understand your planning process and supports a smoother, more effective partnership. |