Grant Budget 

Grant Budget = Cost Estimate + Funding Plan 

A project grant proposal usually requires an estimate of the project’s expenditures and revenues. This chapter provides basic guidance on how to prepare a budget for a grant proposal and some sample budgets. Most of the tips focus on project grant proposals by working groups, but some attention is given also to project grant proposals by communities and working grant proposals by individuals. 

Format 

Most budget readers and writers prefer the tabular format. The use of spreadsheet tools makes calculations easier. In the project budget that is presented to funders, expenditures and revenues must be equal unless otherwise instructed.  

The budget must be closely linked to the work plan. Usually, an indicative budget must be given already in the application form. The budget typically outlines how the costs will be divided between artistic work, outsourcing or labour costs, travel expenses, material and equipment costs and other purchases. Often a more detailed budget is attached to the application, but sometimes a less detailed version included in the application form is sufficient.  

In the work plan, you can justify and explain more precisely how the money will be used. You can specify, for example, what kind of travel costs will be generated, why you need to hire a graphic designer, or why there won’t be any accommodation costs. In the case of a large-scale, multi-year project, check with the funding body whether a budget is required for the sub-project you are applying funding for or for the whole project.

Project Budgets for Working Groups 

 Proposals for project and travel grants must include a project budget, which may include monetary compensation for artists’ work as well as other expenses. The budget must indicate the project’s estimated expenditures and revenues, i.e., how the money will be spent and where the money is expected to come from. 

Cost Estimate 

Always observe the funder’s wishes regarding the breakdown of costs. Group your costs clearly and according to the grouping laid out by the funder. Instead of presenting each item of expenditure separately, you can usually bundle costs of the same type. However, make as accurate and detailed an estimate as possible for yourself, so that you will know the real costs. However, for your own records, make the estimate that is as accurate and detailed as possible, so that you can plan and keep track of the real costs. You can combine cost categories in your application. Use realistic figures as a basis, estimate as close as possible to the actual costs, but round them up or down to flat rates. 

A Typical Breakdown of Costs: 

• Grant-funded work 
• Salaries, wages or fees 
• Outsourced services 
• Travel expenses (including accommodation and per diems) 
• Premises and equipment 
• Materials 
• Other Expenses 

If the grant recipient is an association, project grants can also include funds for overhead expenses, such as administrative, accounting or communication costs, even if they are not specifically linked to the project in question. In that case, please indicate the total amount of overheads in percentages and in euros in your budget, for example, under “other expenses”. In general, the funder’s guidelines will advise you how much overheads can be accepted as project expenditure. 

Grant or Taxable Income? 

In your project budget, consider which members can be paid as grant recipients, who should be paid as an employee and who can and wants to invoice their work. Grantees can usually be members of the artistic team and, depending on the guidelines of the funder, also the producer. The employees or outsourced service providers often include so-called auxiliary workers, such as seamstresses, graphic designers, photographers, technicians, or assistants needed to set up an exhibition or a performance. Remember to include employer’s contributions in the budget (usually 25-35% of the pay). For help with calculating employer contributions, visit palkka.fi 

If all the members of your team can be grantees, there is no need to include any employer contributions in the cost estimate. Grants for members of an independent working group are not considered as taxable income.  

However, if the grant applicant is an association or business, the employee contributions must be included in the cost estimate, as associations and businesses usually pay the artistic team in the form of taxable income. Some funding bodies also accept sole traders as grant recipients. 

Funding Plan  

After calculating the costs, you need to specify how the project will be financed. Funders may not cover the costs of the project in full, so the applicant will need to consider and decide which other sources the funding will come from. On the other hand, some funders explicitly want to fund projects as a complete package. If in doubt, read the funder’s guidelines or ask them directly. 

How to Estimate the Revenues? 

The funding plan must specify other funding received and applied for, possible coproduction agreements, facility contracts and other partnerships, as well as possible self-financing, such as box office, using one’s own facilities and equipment, and voluntary work. Also, mention if the project has any sponsorship or cooperation agreements, or if you will organize a crowdfunding campaign. Is there a background organisation involved? Or is someone providing facilities, equipment or labour? How much such contributions are worth? Some funders have outlined the rates of such contributions. For example, volunteer work may be worth €20/hour/person. 

Grants and subsidies applied for and received can be shown in the budget table, for example, like this:  

• Alfred Kordelin Foundation, grant applied in Oct. 2023; €10,000   
• Finnish Cultural Foundation, Kainuu Regional Fund, grant to be applied in Jan. 2024; €8,000 
• Samuel Huber Art Foundation, grant awarded in May 2023; €2,500 

Budget for a Personal Working Grant

A working grant, or artist’s grant, is usually awarded on a monthly basis for full-time artistic work, so there is no need to make a separate budget. The grant is monetary compensation for artistic work and goes towards living expenses and supplies. If the funder has not specified the amount of a monthly grant, you can use refer to the rates of Arts Promotion Centre Finland (in 2024, €2196.31 / month) or the Kone Foundation whose working grants are 2700 € per month for artists in the early stages of their career. 

Some funders welcome also applications for a part-time working grant (for example, 50%), which allows the grantee to engage in other work at the same time. Funders often specify how much paid work you can do during the grant period.  

If it’s possible to cover such expenses as travel or material costs with the working grant, a detailed cost estimate must be provided. If the grant period is four months or longer, the grantee must pay for a pension and accident insurance. 

Please Note: 

• The artist must apply for an insurance within three months of the start of the grant period.  
• Working on a grant does not count towards the employment condition for earnings-related unemployment benefit.  
• If a person’s full-year grant exceeds the amount of the annual grant of Arts Promotion Centre Finland (€26,355.72 in 2024), the grantee is liable for paying income tax for the excess.