A budget justification should provide additional detail to reviewers about how the goals and objectives of the project will be achieved. The justification differd from the line item budget and proposal narrative in that its sole purpose is to provide a clear narrative of how the project will be carried out, using the individual project costs as the guide.
When preparing your budget justification, check to see if the sponsor limits the page length. Write in sentences, explaining what each member (or group) in your project team will do, explain how each item will be used, and for what major project purpose. For lump sum expenses, explain how these are derived. Your justification should mirror the order of the line-item budget.
Double-check what expenses the sponsor will and will not allow, as these differ from sponsor to sponsor. All costs must be allowable, allocable, and reasonable (allowable costs are those that may be charged to a grant or contract, allocable costs are expenses required to conduct the project, and reasonable costs are decisions a prudent person would make).
Budget Justification Templates: