Project Leaders frequently short-change their projects by miscalculating Community Partners’ administrative fee in the budgets they present to potential funders. To determine what amount to request (expenses + Community Partners' fee) when preparing a budget for a grant proposal, projects need to multiply the project expenses by a little bit more than 9% (9.8901%) so that when 9% is taken off the total amount received, the project is left with the amount needed to cover project expenses.
Here is an example:
CORRECT
Project expenses: $68,250.00
CP calculated charge: 6,749.99 (68,250 x 9.8901%)
Amount requested: 75,000.00
Amount received: 75,000.00
CP actual charge: 6,750.00 (75,000 x 9%)
Remaining to cover project expenses: 68,250.00
INCORRECT
Project expenses: $68,250.00
CP calculated charge: 6,142.50 (68,250 x 9%)
Amount requested: 74,392.50
Amount received: 74,392.50
CP actual charge: 6,695.33 (74,392.50 x 9%)
Remaining to cover project expenses: 67,697.17
In the above example, a project would be short-changed if the fee is calculated by multiplying the expenses by 9%. Expenses should be multiplied by 9.8901% to determine what Community Partners' charge would be on the total amount. Likewise, for most public funds (i.e. government grants or contracts), a project should multiply expenses by 17.6470%. to calculate Community Partners’ 15% administrative charge.
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