1.4 Program Design & Budget
Time: ~25 minutes
What You'll Learn
- How to build a logic model that tells a clear story
- The structure of a defensible line-item budget
- How to write budget justifications that anticipate reviewer questions
- Red flags that signal an inexperienced applicant
- How to handle match/cost-share requirements
Key Concepts
Program design and budget are where most applications fall apart. The needs statement might be compelling, but if the program design doesn't logically address the need — or the budget doesn't add up — reviewers will score you low.
The Logic Model
A logic model is a one-page visual showing:
| Component | Question It Answers |
|---|---|
| Inputs | What resources do you need? (staff, space, materials) |
| Activities | What will you do? (workshops, counseling, outreach) |
| Outputs | What will you produce? (sessions held, people served) |
| Outcomes | What will change? (knowledge gained, behavior changed) |
| Impact | What's the long-term effect? (community-level change) |
Each column should flow logically into the next. If a reviewer can't trace a straight line from your inputs to your impact, the design needs work.
The Budget
Grant budgets follow standard categories:
- Personnel — Salaries and fringe benefits (usually the largest line)
- Travel — Staff travel related to the program
- Equipment — Items over $5,000 (threshold varies by funder)
- Supplies — Consumable items and materials
- Contractual — Consultants and subcontracts
- Other — Everything else (rent, utilities, printing)
- Indirect costs — Overhead rate (if the funder allows it)
Red Flags Reviewers Watch For
- Personnel costs over 70% of total budget without justification
- No indirect costs claimed (looks like you don't know you can)
- Round numbers everywhere ($10,000, $5,000) — real budgets have specific figures
- Budget doesn't match the program description
- Missing fringe benefits calculation
- Equipment listed as supplies (or vice versa) to avoid thresholds
How to Start
Open Claude Desktop and say:
start lesson 1.4Claude will help you build a logic model for your program, create a line-item budget, and write the budget narrative that justifies every dollar.
What You'll Produce
By the end of this lesson, you'll have:
- A logic model connecting your inputs through activities to outcomes and impact
- A line-item budget with specific, defensible figures
- A budget narrative justifying each major line item
- A red flag checklist confirming your budget passes common reviewer scrutiny points