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The primary purpose of a budget narrative is to explain and justify each line item in a budget, ensuring stakeholders understand how and why funds will be spent.
While not mandatory for every grant, most funders require a budget narrative to assess the reasonableness and necessity of requested funds.
A budget narrative should clearly explain the basis for each cost, including calculations, assumptions, and how each expense supports program goals.
While Aplos focuses on budgeting and reporting, you can supplement your reports with a budget narrative for added clarity and context.