Glossary
Grants

Grant Budget

By: Alec Hollingsworth
Updated:  
June 2, 2025

DEFINITION:

A grant budget details how a nonprofit plans to allocate and spend funds received from a specific grant.
A grant budget is a detailed financial plan that outlines how a nonprofit intends to allocate and spend funds received from a grantor. It typically categorizes projected expenses and revenues associated with a specific project or program, ensuring that resources are used in compliance with grant requirements. The grant budget not only serves as a planning tool during the grant application process but also guides financial management and reporting throughout the grant period. By providing transparency, it helps both the grantor and the grantee track the proper use of funds, demonstrate accountability, and assess whether program goals are being met within the allocated resources.

Key Takeaways

  • Outlines planned use of grant funds
  • Ensures compliance with grantor requirements
  • Aids in financial planning and reporting
  • Provides transparency and accountability

Why It Matters

It ensures accountability and compliance with grant terms while guiding effective resource allocation.

Real World Example

Imagine a nonprofit receives a $50,000 grant to fund an after-school tutoring program. The grant budget specifies $30,000 for staff salaries, $10,000 for educational materials, $5,000 for snacks, and $5,000 for administrative costs. Throughout the year, the organization tracks expenses against these categories to ensure they do not overspend or use funds for non-approved purposes. When reporting to the grantor, the nonprofit uses the budget to demonstrate how each dollar was spent, confirming compliance with the grant terms and building trust for future funding opportunities.

How Aplos Helps

Aplos allows users to create, track, and manage grant budgets within its accounting software. By tagging income and expenses to specific grants, organizations can easily monitor fund usage, generate reports, and ensure grant compliance, simplifying both the planning and reporting processes for nonprofits.
launch trading trade finance startup icon

Try it yourself. Start your 15 day free trial

No commitment or credit card required.

Try it For Free

Frequently Asked Questions

What is included in a grant budget?

A grant budget typically includes projected expenses, revenue sources, and detailed categories showing how funds will be allocated for a specific project or program.

Why is a grant budget important for nonprofits?

It helps track and manage the use of grant funds, ensures compliance with grantor requirements, and demonstrates accountability and transparency.

How does Aplos help manage grant budgets?

Aplos enables nonprofits to tag transactions to specific grants, monitor budgets, and generate reports to simplify grant tracking and compliance.

Can grant budgets be adjusted after approval?

Adjustments can sometimes be made with grantor approval, but changes must still align with grant terms and be properly documented.

Is a grant budget required for all grant applications?

Most grant applications require a detailed budget to show how funds will be used and to assess the feasibility and impact of the proposed project.

Related Terms

Management & Discussion Analysis (MD&A)
UBIT (Unrelated Business Income Tax)
Contribution
Chart of Accounts
In‑Kind Contribution
Accrual Basis

Aplos has everything you need in one place for streamlined nonprofit and church management.

Start A Free Trial

Copyright © 2025 Aplos Software, LLC. All rights reserved.

Aplos partners with Stripe Payments Company for money transmission services and account services with funds held at Fifth Third Bank N.A., Member FDIC.

Aplos

Our StoryTeam AplosCareersReviewsContact UsSecurity

Resources

AcademyAPIPartnershipsReferral PartnersAplos StatusAplos Glossary

Products & Features

Nonprofit SoftwareChurch SoftwareNonprofit AccountingChurch AccountingDonor ManagementNonprofit CRMOnline DonationsFundraising SoftwareText to GiveBill PayPayrollPrepaid Cards

For Customers

Support CenterTraining CenterFind An Aplos Advisor

Compare Us

Compare Quickbooks® For NonprofitsCompare Quickbooks® For ChurchesCompare Sage Intacct For Nonprofits

Services

Nonprofit Bookkeeping ServicesChurch Bookkeeping ServicesImplementation Services
Start A Free Trial

Copyright © 2024 Aplos Software, LLC. All rights reserved.

Aplos partners with Stripe Payments Company for money transmission services and account services with funds held at Fifth Third Bank N.A., Member FDIC.

Legal StuffPrivacy Policy
California Consumer Privacy Act NoticeDo Not Share My Personal Information