Web3 Impact Toolkit

Budget is a continuation of project logic

The budget is not a separate table but the mathematical expression of your theory of change. Every line ties to an activity; every activity to an output; every output to an outcome. This is the traceability principle, and the reviewer checks it line by line.

Basic categories

•Personnel: salaries, fees, payroll taxes. Usually the largest line.

•Travel: trips, per diem, accommodation.

•Equipment & supplies: equipment, materials, consumables.

•Activities: venue rent, catering, translation, design, printing.

•M&E: research, surveys, external evaluation.

•Indirect costs / Overheads: office, communications, accounting, bank fees (often capped at 7-15%).

Budget narrative

The budget narrative is the textual companion that explains each line. Without it, the budget is dry numbers hard to justify.

Budget narrative line template

"Project coordinator: 1 person × 50% FTE × 12 months × €1,000/month = €6,000. The rate is based on the median coordinator salary in Ukrainian NGOs per NGO Salary Survey 2025."

•Always show the calculation: quantity × duration × price.

•Justify prices with a source: market median, prior procurement, quotation.

•Explain why each line is necessary in the project logic.

Allowable costs and donor restrictions

Each donor has its own list of what may be funded. Ignoring these rules is the most common cause of budget rejection.

•USAID: strict limits on alcohol, lobbying, religious activity; competitive procurement required.

•EU: equipment caps; host country origin rules for procurement.

•Most donors: don't fund debts, fines, already-incurred expenses, charitable contributions to others.

Co-funding

•Cash: your own funds or other donors' funds.

•In-kind: market value of volunteer time, office rent, donated equipment.

•All in-kind must be documented: volunteer agreements, lease contracts, receipts.