If your institution has a grants management office that can help you prepare a suitable budget for the scope of your proposed research and institutional policies, by all means take advantage of their expertise. Having a copy of a successfully funded NIH application can also be helpful at this point of the process.

Typical NIH budget components usually include Personnel (salaries and fringe benefits), Consultants, Equipment, Supplies, Travel, Other Expenses, Sub-agreements and Indirect Costs. Research career awards and training awards will include categories for trainee stipends and tuition expenses.

More on Indirect Costs

Two key elements of any NIH budget are direct costs and indirect costs.

Direct costs are costs that can be specifically identified with a particular project(s) or activity.  Examples of research project-specific expenses include expenses for equipment, personnel, travel, and other expenses necessary to carry out a research project.

Indirect costs, sometimes known as F and A (facilities and administration) costs are real costs that provide reimbursement for actual institutional expenses that support extramural activities but cannot be directly charged to a grant or contract. The costs result from shared services such as libraries, physical plant operation and maintenance, utility costs, general, departmental and sponsored projects administrative expenses, and depreciation or use allowance for buildings and equipment.

Indirect cost rates for all Federal grants and contracts are computed on the basis of actual costs incurred and regulations from the U.S. Office of Management and Budget that define the cost categories that are eligible for reimbursement. At an academic institution, indirect cost reimbursement rates are periodically negotiated with the Department of Health and Human Services (DHHS). A signed agreement, that establishes the allowable rates of reimbursement, is entered into between the submitting institution and the Government.

Helpful hints:

Use the correct budget forms – some funding mechanisms, such as training awards, use slightly different budget forms. NIH forms and instructions can be found at Downloadable Instructions and Form Files.

Have someone double check your math! An extra set of eyes can find simple math errors BEFORE you submit.

Justify, justify, justify! Provide detailed justifications for items included in your budget requests. Check with your institutions extramural research office for any special considerations.

Accommodate for inflation when you are creating multi-year budgets, and keep in mind any costs that may be variable in future years.