How to Budget Fees Expenses in a Grant Application

When I first started writing grants, the “fees” section always tripped me up. It seemed simple enough—but it’s actually one of the easiest places to lose credibility with a funder. Over the years, I’ve learned that how you handle fee expenses says a lot about how well you manage a project. In this post, I’ll walk you through the same three points I cover in my latest video so you can budget your fees confidently and clearly.

1. Know What Counts as a Fee

Let’s start with the basics—what actually qualifies as a fee?
In a grant budget, fees usually cover professional or administrative services that support your project but aren’t performed by your core staff. That could include consulting, accounting, legal, licensing, or even permitting costs. These are legitimate project expenses—but they have to be specific. I always recommend taking a few minutes at the start of your budgeting process to list out every type of service your project will rely on. It’s the simplest way to make sure your budget tells the full story of what it takes to get the job done.

2. Back It Up with Real Estimates

This is where most applicants fall short. Don’t guess. Funders can tell when numbers are vague or inflated. Whenever possible, I reach out for quick quotes or check standard hourly rates in my region. Even a couple of emails or online rate comparisons can make a huge difference. When your fee estimates are grounded in real data, reviewers notice—it shows you’ve done your homework and that your budget can actually stand up to scrutiny.

3. Tie Every Fee to a Purpose

Finally, every fee needs context. It’s not enough to just list “consulting – $2,000.” Funders want to know why that fee matters. I like to include a brief justification that connects each expense to the project’s outcomes—something like, “Consultant will facilitate evaluation design to track project impact.” A one-line explanation like that instantly adds transparency and strengthens your credibility as a responsible applicant.

If you remember these three things—identify your fees, base them on real numbers, and tie each one to your project’s goals—your budget will read as thoughtful, credible, and funder-ready.

And if you want to go further, don’t forget to download my free guide, “10 Essential Tips for Budgeting Fee Expenses in a Grant Application.” In it, I build on these three strategies and share seven more ways to make your fee section both accurate and persuasive.