Funding Transition Updates: Please see Federal Transition Updates 2025 for the latest federal executive orders and research activities.
Budget Preparation
A budget provides estimated projected expenses necessary to complete the proposed scope of work or research plan. Reviewers use the budget as a mutually reinforcing summary of the entire proposal. Investigators work to ensure that the project budget reflects the narrative for the entire period of performance in line with federal regulation, GW institutional policies and sponsor guidelines.
Most sponsors will provide detailed instructions and specified formats for budget preparation, and may require a budget justification or budget narrative to explain why each cost is necessary for the project, how the cost will be used, and how the cost was calculated. Ensuring that the scope of work and budget are in balance will help reviewers to evaluate your proposal. Budget development should follow the sponsor guidelines and the funding opportunity announcement (FOA) instructions. If a sponsor does not require a formal budget, an internal Excel budget uploaded in myResearch attachments is optional, except for proposals using foreign currency. All funding proposal require a budget to be created and developed in myResearch.
Process
- The Principal Investigator ensures that all project-specific cost categories are included in the budget only as applicable to the scope of work and project goals. Estimated costs for each category are included and are detailed and justified in the budget justification. The PI calculates estimates of project related costs based on the guidance provided in the budget cost categories resource page.
- The Research Support Team have expertise in the development of budgets and assist PIs in budget development.
- Department or School leadership provides additional review and approvals for cost shares and any commitment of institutional resources.
- Department or School leadership from collaborating schools approve budgets for their respective projects on multi-school projects.
- The Office of Sponsored Projects confirms budget information during the compliance review of the proposal package.
Resources
- Budget Cost Categories
- Sponsor Specific Budget Checklist/Guides
Frequently Asked Questions
- What should be included in the budget justification or budget narrative?
Budget Narrative, also known as budget justification, provides a detailed explanation of itemized costs in the budget in connection to the proposal goal in the scope of work.
- Does a Principal Investigator have to include effort on every project?
Yes, all faculty members listed as the Principal Investigator on a sponsored project must contribute some level of effort to that project to provide necessary supervision/administration.
- How do I account for annual increase in salary in multi-year budget?
Most sponsors allow for an annual escalation of salaries and wages for budget projections. Effective December 1, all proposal budgets should factor in a new escalation rate of 4.5%. Please note that this rate is strictly for budget projection purposes and that final merit budgets will be determined by Finance and allocated based on HRMD pay and rewards process.
- Are there sponsor specific salary restrictions or limitations?
Some sponsor will provide guidance on salary restrictions or limitation. Sponsors guidelines limiting compensation paid on the award must be considered in budgeting, including:
- HHS executive level salary limitation, updated annually
- Other sponsor-specific salary cap per funding opportunity announcement (FOA ) and other sponsor guidelines
- What is the difference between direct costs and indirect costs?
- Direct costs are those that can be specifically identified with a particular project and are necessary to fulfill the project’s objectives.
- Indirect Costs, otherwise known as Facilities and Administrative (F&A) costs, represent the university's research-related costs that cannot be allocated to individual sponsored projects. These costs can include lab space, utilities, libraries, and department and central administration staff, among others.
See detailed information on the Budget Cost Categories resource page.
- What Indirect Rates apply to my proposal?
Current GW indirect rates are provided in the Institutional Information page in accordance with GW's current Negotiated Indirect Rate Agreement (NICRA). For additional information, review the Indirect Costs section on the Budget Cost Categories resource page.
- What is the difference between Total Direct Costs (TDC) and Modified Total Direct Costs (MTDC)?
- Total direct cost (TDC) is the sum of all direct costs listed in the budget. When applying to a non-federal sponsor, including industry sponsors, use the total direct cost base unless the notice of funding announcement (NOFO) or sponsor guidance do not permit.
- Modified total direct cost (MTDC) is used for all federal proposals. MTDC is the sum of all direct costs excluding the following line items:
- At this time, GW continues to apply the $25,000 threshold for MTDC on subawards. A new threshold is expected to go into effect with the University's next Negotiated Indirect Rate Agreement (NICRA), applying the 2024 Revisions to 2 CFR Part 200 (Uniform Guidance) threshold of $50,000 for subaward budgets (inclusive of direct and indirect costs).
- Modified total direct cost (MTDC) is used for all federal proposals. MTDC is the sum of all direct costs excluding the following line items:
See detailed information on the Budget Cost Categories resource page.
Support
- For research support team (RST) contact information, click here.
- For pre-award assistance from OSP, email osp_pre-award
gwu [dot] edu (osp_pre-award[at]gwu[dot]edu). - For assistance with myResearch, email myresearchgwu [dot] edu (myresearch[at]gwu[dot]edu).