How to Write a Budget Request

A budget request is a formal letter that's required when you're seeking funding for a business project, and also when you are seeking funding to start a new department or company initiative. You should write your budget request, using the same format that you would for a business letter, but there are some important details to include so you can maximize your chances at getting that all-important "Yes."

Know Who Will Read the Request Letter

Before you write the budget request, it's essential for you to know and understand the person who will read this letter. This means you must know the name and title of the person that supervises incoming budget requests for the funding company. It also doesn't hurt for you to do a little investigation to find out a little about that person's background or history at the funding company. For example, if you find out that the person was instrumental in funding a similar project in the past, you can mention this in your request to create a personal connection.

More For You

How to Write a Business Report Conclusion

What Information Should a Business Proposal Contain?

How to Write an Introductory Letter for a Non-Profit Needing Money

Follow-Up Letter for Request for Funding

How to Make the Right Decision on How to Use Your Grant Money

Explain the Background for Your Project

Briefly explain how the project you want to be funded was created, any similar projects that your business has successfully launched, and how those projects fared after launch. You should also include any forecasting trends that would give the reader a sense of the benefits of funding the project.

Explain the Purpose or Goal of the Request

You must be specific about what you plan to do with the funding, so that there is no confusion about the project's purpose or goal. This means that you must explain exactly how you will spend the money you're asking for, and how much of the project the funding will cover.

For example, instead of writing, "We will staff the new department with computer experts," you should write, "T_he new staff will consist of three computer security experts, with a minimum of five years' experience, and we intend to charge $50 per every 15-minute call that customers make to these experts_."

Include a Budget

Including a budget is an absolute necessity not only because it breaks down all of your expenses, but also because it gives your prospective funding company the opportunity to decide if it wants to fund the entire project or only a portion of it. Giving your funder this choice is vital, because obtaining some money is much better than getting no money at all. The budget should include line items for each expense, and if the numbers you write are only estimates, make sure that you indicate this fact, in parentheses, next to each item.

Summarize the Request

Finish the budget request with a summary of all the details you covered in the letter. Make sure you reiterate why the project is important and what are the benefits to the funding group, if it gets involved. It's also important to include the methods you will use to monitor and evaluate the project, and that you will provide progress reports to the funder.