When preparing a grant budget, it is important to understand the grant guidelines and requirements. Different grantors may have different rules and formats for budgeting, so it is essential to read the grant application thoroughly and follow the instructions. It is also important to align the budget with project goals and activities, categorize budget items into direct and indirect costs, justify budget items with detailed breakdowns, and match the budget with available resources and funding sources. Specifically, direct costs are those that can be directly attributed to the project, such as salaries, travel, equipment, and supplies. Indirect costs are those that are not specific to the project but support the overall operation of your organization, such as rent, utilities, administration, and overhead. Additionally, you need to explain why each budget item is necessary and reasonable for the project as well as how you calculated the amount. You may also need to provide supporting documents such as quotations, invoices or receipts. Finally, you must show how you will cover the total cost of the project including any matching funds, in-kind contributions or other grants that you have secured or applied for.