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Indirect costs: applicants often do not include indirect costs in their project costs. In the previous example, someone in the office would have spent time arranging the course, accepting enrolments and hiring the venue. The cost of their time should be included.

It is often difficult to find funding for salaries, but if you analyse staff time according to projects or programmes you can include them in your project applications Funders vary in their policies, but it may be possible to apportion staff time to programme costs.

Volunteer input: be sure to mention volunteer input and donated materials, which may be considerable. Remember that there are costs associated with well-managed volunteers: recruitment, orientation, supervision, expenses and recognition.

Group’s contribution: most funders like the group to contribute to the project rather than asking for the whole amount. However, in some situations this may not be possible or realistic. A small group of volunteers providing a service may have limited time and energy for fundraising.

Reserved funds: if you have reserved funds, say what they are reserved for. Explain anything that may puzzle the funder. Try to persuade the funder that as a prudent organisation you need to maintain adequate reserves, especially if employing staff.

Overheads

Neighbourhood Inc.

Neighbourhood Inc. has three service or programme areas that cost $100,000 in direct costs to run:

The counselling service costs $60,000 (60%) The community education

classes cost $30,000 (30%) The holiday programmes cost $10,000 (10%)

The agency’s overheads; (salaries, rent, telephone, insurance etc.), total $50,000

If the overheads are apportioned to the service areas their total costs are:

Counselling

$60,000 plus $30,000

(60% of $50,000) = $90,000

Community Education

$30,000 plus $15,000

(30% of $50,000) = $45,000

Holiday programmes

$10,000 plus $5,000

(10% of $50,000) = $15,000

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