CHOOSE A LANGUAGE BELOW

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ILLUSTRATING A TANGIBLE PROJECT BUDGET​

The budget form has five main categories: 1) general supplies and communication, 2) pre-event marketing, 3) educational materials, 4) logistics, 5) and project personnel. The budget form has been updated to complement risk assessment evaluations, and the Uniform Guidance.

The written part of an application and the budget should directly reference each other. If paid newspaper ads are listed as part of the marketing plan, then the budget should show dollar amounts allocated towards this expense. Likewise the explanation section of the budget should clearly articulate the amount of funds being devoted to this form of paid advertisement. It is important that a tangible plan is able to be clearly identified. 

Similarly, the budget and the application’s narrative should mirror each other when it comes to paying project personnel. Whether an applicant is seeking to pay staff or a scholar, these individuals’ names and their roles should be specified in both documents. Since subaward grants through the New Mexico Humanities Council are federal funds, specific details are requested to mirror the requirements outlined in the Uniform Guidance managed by the Office of Management and Budget.

Applicants who are selected for a subaward grant will be assigned a payment structure based on their risk assessment score. Organizations with a positive grant management history and an application that is closely aligned with grant guidelines are likely to receive a low risk assessment score and therefore be eligible to receive a larger portion of grant funds as their initial payment. Likewise, organizations with a low risk assessment score are not anticipated to require as much monitoring which reduces the interim reporting burden.

Whether an organization is developing a budget for an application or working on final financial reports, the content within both types of forms should reflect the organization’s bookkeeping. For example, when seeking funding to support for project personnel, individuals should be identified as either contractors or staff. The dollar values associated with each individual should reflect their actual rate of pay. If the use of a building is logged as in-kind cost-sharing to meet matching requirements, then the hourly rate at which a space is valued should reflect an actual rental rate for the space.  For example, if the applicant is contributing the use of an auditorium for $500 a day, then the organization should have a tangible record of offering the same space to the general public at that same rate for the same block of time. This demonstrates fair market value for the space and therefore satisfies the requirements of the Uniform Guidance. 

Grant funds being requested and cost-sharing contributed toward matching need to reference expenses related directly to executing the project.  Subaward grants are meant to support direct project costs, rather than the indirect costs of an organization. There are only two exceptions which can be found below in the section labeled “cost-sharing / one-to-one matching requirements.” 

While it is acknowledged that some project expenses are often acquired prior to a subaward grant being awarded, it is important to know that grant funds can only support expenses that fall within the grant’s active project performance period. Likewise, the expenses and in-kind items logged as cost-sharing (matching) in final reports need to also fall within the grant’s active project performance period. 

Subrecipients that are filling out final financial reports need to 1) reference the approved budget, 2) reference their bookkeeping records, and 3) only report allowable expenses. The reported amounts should mirror the budget with no more than a 10% change. It is understood that circumstances might call for budget changes that exceed this 10%, and when this occurs, please reach out to NMHC’s grants management staff for prior approval.

 

TIMELINES AND MAPPING OUT YOUR PROJECT'S BUDGET

We encourage all applicants to review our application deadlines as well as our general processing timelines before applying for a grant. Application deadlines can be found on our “Get Started” page. The timeline associated with pre-application preparation all the way through the NMHC Board’s decision process can be found on the “Project Prep Work and What to Expect” page. The day the Board votes is when the grant project performance period begins. NMHC staff need some processing time before the initial payments can be disbursed. Being aware of these timelines will help you plan a project proposal, event programming and related expenses. 

All final grant application submissions and subaward grant reports are managed through the Foundant Grants Management Portal. If you are ready to schedule a consultation meeting or have questions along the way please reach out to NMHC’s grants management team. Check out our staff directory for contact information. Below are more specifics about budgeting.

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COST-SHARING / ONE-TO-ONE MATCHING REQUIREMENTS

Applicants must pledge to equally support the project by providing a one-to-one match through cost-sharing and third party in-kind contributions. Cash contributions from the applicant/non-federal entity would include expenses incurred in order to execute the grant funded project (examples: directly related employee wages, marketing expenses, venue rental fees, etc.). 

For audit purposes, it is recommended that subrecipient organizations retain documentation to verify both cash-based and in-kind contributions. Some examples include: volunteer logs, employee payroll records, copies of checks, receipts, invoices, donation records, etc. Please retain these items for at least three years.

POLICY REMINDER - DISQUALIFIED FUNDING SOURCES
Other federal resources may not be used as a means of meeting the one-to-one matching requirement. This includes but is not limited to: other federal grants, donated space at a federally owned venue, and/or in-kind hours from a federal partner etc.
POLICY REMINDER - DIRECT COSTS
All expenses included must be directly connected to the project and be an allowable expense in order to count towards the one-to-one matching requirements. There are only two exceptions which are listed in the policy note below.
POLICY REMINDER - INDIRECT COSTS
The Uniform Guidance provides eligible applicants with the option to request up a 15% de minimus indirect cost rate (calculated based on the total amount of grant funds being requested.) Alternatively, institutions who have a formally negotiated indirect cost rate established with the federal government may apply the most relevant rate provided in their documentation. NOTE: A full one-to-one match must still be provided for any indirect cost amount requested from grant funds. Only institutions with a federally negotiated indirect cost rate may choose to apply a portion of this rate towards meeting the matching requirements.
POLICY REMINDER - IN-KIND
Third party in-kind contributions must be assigned a fair market value rate and may include: donated venue space, waived graphic design fees, volunteer hours etc.

VOLUNTEERS CONTRIBUTING IN-KIND HOURS: Volunteers with hours contributed toward meeting the matching requirements of the grant must have their contributions to the project logged in a way that mirrors the Uniform Guidance requirements. NOTE: It is not necessary to include this level of detail for volunteers in the application’s budget. However, this information will be needed during the final reporting process. Subrecipients often minimize the administrative burden by having volunteers fill out a “volunteer log.”

ADDITIONAL COMMUNITY CASH BUDGET COLUMN

This column is most commonly used to log project funds coming from another federal source (see policy note below). Within the budget form is a column labeled “additional community cash.” Within this column applicants have the option to showcase the additional funds they have from other sources to support the proposed project that go beyond the one-to-one minimum matching requirements. Providing this information helps demonstrate how your organization is able to ensure the success of the project / program.  

POLICY REMINDER
NOTE: Since grants from NMHC are federal grants, other sources of federal funding cannot be counted towards fulfilling the matching requirements. Therefore if you have another federal grant or other federally sourced resources, please log this support in the "additional community cash" column.

FUNDING EXCLUSIONS

NMHC policies and guidelines exclude grant funding for the following types of projects, activities and costs:

• food and beverage items beyond travel per diem;

• “brick and mortar” projects such as construction, renovation or preservation;

• museum or library acquisitions;

• fundraising events or other events intended to make a profit;

• curriculum development;

• classroom presentations or “how to” workshops without humanities discussions;

• traditional courses for college credit;

• research (except as preparation for an NMHC public grant program);

• fellowships or scholarships;

• advocacy, lobbying or direct action programs;

• professional development;

• contest awards;

• professional conference events intended solely for those registered at the conference; conference events open and accessible to the general public may be considered for funding;

• the creation of art or performing arts programs, with the exception of programs in conjunction with  a humanities centered educational talk that facilitates a question and answer session with the audience;

 art exhibitions without a humanities centered discussion

 broadcast quality film or video projects, unless an integral part of another project (example: a video that is part of a humanities centered exhibit or oral history project);

• the continuation of existing humanities programs that are a regular part of an organization’s activities;

• the creation of new and entire websites;

• publications that are not directly related to executing the grant funded project; NOTE: publications funded through NMHC awards may not contain solicitations of funds.

 

SPECIFIC AREAS WITH CAPS WHEN USING GRANT FUNDS

POLICY REMINDER
NOTE: The caps listed above only apply to the use of grant funds. Applicant organizations may contribute additional funds towards any of these areas. Any funds the applicant organization contributes will be counted towards fulfilling the cost-sharing / matching requirements.
POLICY REMINDER
NOTE: The amounts logged in all final reports should reflect the capped rate shown at the time the grant application was submitted. While rates often increase each year, subrecipients are only permitted to spend grant funds according to the amounts shown in their approved budget form within the budget form.
POLICY REMINDER
NOTE: Grant funds for the items listed above are only meant to support project personnel during their time of service. Meaning travel to and from a grant funded event (the day before and the day after the event). Extended stays must be supported through alternative funding sources provided by the applicant organization.

BUDGET CATEGORIES

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BUDGET CATEGORY 1: GENERAL SUPPLIES AND COMMUNICATION
POLICY REMINDER
NOTE: Some items in this category have caps linked to the use of grant funds. Please scroll to the section above for more information.
POLICY REMINDER
NOTE: Rental fees for films or exhibit objects are capped and limited to items actively being discussed in humanities focused scholar presentations with a Q&A. These items may include (but are not limited to) documentaries, historical artifacts, or contemporary 2-D or 3-D creative items.
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BUDGET CATEGORY 2: PRE-EVENT MARKETING
POLICY REMINDER
Grant-funded projects need to focus on audiences in New Mexico. Therefore marketing paid for by grant funds must be put towards reaching New Mexicans.
POLICY REMINDER
Merchandise is considered an indirect cost. Merchandise (t-shirts, mugs, posters, etc) is not categorized as marketing. NMHC considers marketing as efforts to increase attendance prior to the actual event. NOTE: Grant funds cannot be applied towards merchandise and the applicant's expenses linked to producing merchandise cannot be counted towards cost-sharing / matching.
POLICY REMINDER
To mirror the Uniform Guidance, please include the name of each individual being paid either through grant funds or cost-sharing. These individuals' names and their roles should also be listed in the written part of the application. NOTE: The only exception is for "other contractors." If you have any questions please contact NMHC staff.
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BUDGET CATEGORY 3: EDUCATIONAL MATERIALS
POLICY REMINDER
Grant funds being used to support a videographer are limited to: recording oral histories related to the project, live streaming related events and/or documenting related events. NOTE: Recorded material should be made accessible to the general public.
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BUDGET CATEGORY 4: LOGISTICS
POLICY REMINDER
Grant funds can be used to rent a venue space for NMHC sponsored public events. Applicants may also list the value of using their own space in their budget as cost-sharing / matching. However, to do so the space needs to be listed at a fair market value rate. This is typically only able to be calculated if the organization already has an established record of renting their space to members of the community. (EXAMPLE: Ballroom C's pre-established rental rate is $100 per hour; or Canyon Hall Community Center's. pre-established rental rate is $400 per day.) Organizations may not assign a random dollar amount to their space and use it as matching.
POLICY REMINDER
Grant funds being used for many of the budget items listed above are subject to a specific capped dollar amount.
POLICY REMINDER
To mirror the Uniform Guidance, please include the name of each individual receiving travel support. These individuals' names and their roles should also be listed in the written part of the application.
POLICY REMINDER
All airline travel paid for with grant funds must meet the criteria outlined in the Fly America Act.
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BUDGET CATEGORY 5: PROJECT PERSONNEL
POLICY REMINDER
To mirror the Uniform Guidance, please include the name of each individual being paid either through grant funds or cost-sharing. These individuals' names and their roles should also be listed in the written part of the application. NOTE: The only exception is for "other contractors." If you have any questions please contact NMHC staff.
POLICY REMINDER
Grant funds for Evaluator(s) are capped at $350 per each individual event evaluation. Each evaluation should be submitted on a separate form. However, it is recognized Evaluator(s) may also be receiving additional payments from the applicant organization. These additional payments can be counted towards cost-sharing / matching.
POLICY REMINDER
Grant funds for Scholar(s) are capped at $350 per Scholar, per event. However, it is recognized Scholars may also be receiving additional payments from the applicant organization. These additional payments can be counted towards cost-sharing / matching.
POLICY REMINDER
The hours contributed by key project personnel and other staff need to be logged in the application's budget and in final financial report forms. These individuals' contributions to directly executing the project needs to mirror the Uniform Guidance requirements. These individuals should also be reflected in the written application.
POLICY REMINDER
The Uniform Guidance asks for similar documentation for in-kind contributions from volunteers. Some organizations may have volunteer board members acting as key project personnel. Others may have general volunteers providing program support. While each individual volunteer may not be known by name the individual types of roles that will be fulfilled during the project's execution can be identified.