How will you pay for the project? That’s the million-dollar question, so to speak. Many funders don’t like to be the only ones contributing to a program, so it’s important to show other sources of income. You might not know where all the money is coming from when you apply for a grant. That’s okay, but you will need to indicate the possible sources, such as in the following example.

Income

Always list the request from the funder first, and label it “request.” (You don’t want them to think you’ve counted their money before you even applied.) You might have three other applications pending, but only list enough funders to make the budget balance. If all the other money is pending, you might give a footnote to explain that you’re also submitting applications to additional funders at the same time, whether you name them or not. Also note if any of the pending funders have supported your program in the past.

Notice that participant fees are included in the income projection in the previous table. If your program will generate several types of earned fees, you might want to subtotal earned versus contributed income. Funders love to see earned income, so make the most of it.

And just as you included indirect costs in your proposal, you might want to list indirect income—that is, income used to support your project but not coming in as a direct result of your project. You may well need to include a portion of your operating funds or income from a refreshment stand to make your budget balance. Unlike with indirect expenses, you’re free to include whatever indirect income you like. Just be prepared to explain where it comes from if asked.

If you’re requesting a funder to make a challenge grant, you’d need to devote a substantial part of the program or budget narrative to how you’ll raise the additional funds and why this funder’s making the grant as a challenge would help you raise the balance of the funds.

If you’re asking a funder to help you meet another funder’s challenge grant, mention the matching grant in your proposal narrative and cover letter, and list it separately, as in the following example.

Always think strategically about which other funders you list, keeping in mind that funders know other funders and some even have overlapping trustees. Also, don’t use miscellaneous or unknown or new funders in the income section. You should have at least some idea of where all income might come from or else you need to do more research before submitting any proposals.