Grant Writing Costs Explained: What Organizations Must Budget for Upfront
When organizations begin exploring grant funding, one of the first budgeting questions that comes up is:
“How do organizations pay for grant writing?”
The answer is straightforward, but often misunderstood. Grant writing is a pre-award professional service, which means it must be budgeted and paid for outside of grant funds.
Understanding this early helps organizations plan responsibly, avoid compliance issues, and build a sustainable funding strategy.
Grant Writing Happens Before Funding Exists
Grant writing occurs before a grant is awarded. At the time a proposal is developed and submitted:
No funds have been approved
No performance period has begun
No scope of work has been authorized by a funder
Because of this timing, grant writing costs cannot be tied to an active grant award. Funders only allow expenses that occur during the approved grant period and directly support implementation of the funded project.
Grant writing does not meet these criteria.
Why Grant Writing Is Not a Reimbursable Expense
Grant funders are clear that awarded funds are intended to support program delivery, not proposal development.
Grant writing costs are excluded because they:
Precede the award decision
Do not support an approved project
Are not incurred during the grant period
Are considered preparatory or administrative in nature
Attempting to pay or reimburse grant writing fees from awarded funds can place an organization at risk for:
Disallowed costs
Audit findings
Required repayment
Loss of funder trust
This is why professional grant writers require payment before work begins.
How Successful Organizations Plan for Grant Writing
Organizations that secure funding consistently treat grant writing as a capacity-building investment, not a gamble.
They plan by:
Budgeting grant writing as an operating expense
Paying proposal development costs upfront
Separating grant writing from post-award activities
Working with professionals who follow compliance standards
This approach ensures that proposals are developed ethically, transparently, and in alignment with funder expectations.
What Costs Can Be Included After a Grant Is Awarded
Once funding is awarded, some grants allow administrative or management costs if explicitly approved in the budget.
These may include:
Grant reporting and documentation
Program evaluation
Financial oversight and tracking
Compliance monitoring
Required progress and outcome reporting
Grant closeout and sustainability planning
These services occur after the award and support execution of the funded project. They are distinct from grant writing and must be budgeted separately.