How do I ask a funder to change my grant budget?
Check your award agreement first: it says which changes need the funder's written approval and which you can make yourself. If yours needs approval, send one written request before you spend the money, say what moves and why, and file the reply beside the budget. Here are the steps.
The method
- Find the budget rule in your agreement. Search the award letter or terms for "budget", "revision", "prior approval", "rebudget", "transfer" and "modification". Write down any percentage or dollar threshold and who must approve. The agreement controls. A foundation or state award often has its own rule, such as a stated percentage you may move between lines without asking.
- Decide whether this change needs approval at all. For a federal award, 2 CFR 200.308(f), as read on 2026-10-19, lists the changes that need prior written approval from the federal agency or pass-through entity. They include a change in the scope or objective of the project, a change in key personnel named in the award, a need for additional federal funds, a change to the total approved cost-sharing amount, and moving participant support costs into other categories. Moving money between ordinary budget lines is not on that list. Section 200.308(i) lets an agency restrict transfers among direct cost categories once they reach 10 percent of the total budget, but only on awards above the simplified acquisition threshold and only if the agency chooses to. Read your own terms to see whether yours does.
- Write down exactly what you want to change. The current budget line, the new amount, the line the money comes from, and the dollar difference. Add a sentence on what stays the same, usually the scope, outcomes and total award.
- Give the reason in two or three sentences. A real cause, with a date or a fact. A vendor quote came in higher, a position was filled later than planned, a training cost less than expected. Say what the money will now buy and how it still serves the funded work.
- Use the funder's format. Section 200.308(c), as read, says to use the same budget format as the application unless the agency approved another one, such as a portal, email or form. Ask your program officer which they want if the agreement does not say. Attach the old and revised budget side by side.
- Send it before you spend the money. Send it to the person named in the agreement, by the route they use, and keep a copy. Do not treat a conversation as approval. Do not commit the funds on the assumption the answer will be yes.
- Note the review window and follow up. Section 200.308(d), as read, says the agency or pass-through entity should notify you within 30 days of receiving a revision request, or say in writing when a decision can be expected. Put a follow-up date on your calendar for that day.
- File the approval beside the budget. Save the signed or emailed approval, the request and the revised budget in the award folder, and label the revised budget with its approval date. Spend against the revised version from then on.
- Carry the change into your reports. The next financial report and the final one should match the approved budget. Add a line to your closeout notes saying which lines changed and where the approval is.
Your award agreement and your funder's instructions are the authority on every date and requirement. This page is a working method, not legal, audit or compliance advice.
A worked example (made-up award)
A small nonprofit has a $120,000 award with a $14,000 line for printing and outreach and a $6,000 line for training. In March the outreach costs come in $2,500 under budget, and the director wants to put that into training for two new volunteers' certification. The agreement says transfers between lines above 10 percent of the award need written approval. This one is about 2 percent. She checks that no named key person, scope or cost-share amount changes, tells the program officer by email anyway, and saves the reply. The next month the director wants to add a new subaward the application never mentioned. That one needs approval, so she sends the request with a revised budget before signing anything.
A request, in plain words (made-up sample)
Subject: Budget modification request, Award 2026-0142. We request approval to move $2,500 from line 4 (Printing and outreach, current $14,000) to line 6 (Training, current $6,000). The change is due to lower printed material costs than budgeted. The funds will cover certification for two volunteers delivering the funded program. Scope, outcomes, key personnel, total award and cost share are unchanged. A side-by-side budget is attached. We will not commit these funds until we receive your written approval.
Budget change, scope change and time extension are different requests
- Moving money between lines: governed by your agreement's budget clause, as above.
- Changing what the project does: a scope change, which for federal awards needs approval even with no budget change.
- Moving the end date: a different request with different timing. See how to request a no-cost extension.
Common mistakes
- Asking afterwards. Approval after the spend is a request for forgiveness, and the funder may say no.
- Relying on a phone call. If it is not written down, you cannot show it at closeout.
- Treating the 10 percent figure as universal. It is a federal option and many agreements say something else.
- Forgetting the cost share. A change to the total approved cost-sharing amount needs approval for federal awards.
- Not updating the budget copy. Two budgets in a folder, with no approval date on either, is how a closeout goes wrong.
The faster path, and what it does not do
GrantClose is not a budgeting tool and does not hold your budget, track spending or tell you whether a transfer needs approval. What it does is keep the request from getting lost. You can add the modification request as a deliverable with a due date, one owner, a status and the approval attached as evidence, so the reply is filed with the award instead of in one person's inbox. At the end you can export a closeout ZIP per award with an index of every deliverable and each evidence file with its SHA-256 checksum.
- It does not know your budget, spend or thresholds.
- It never contacts a funder, and will not send or submit the request.
- It is not accounting software and holds only what you upload, up to 15 MB per file.
- The free grant reporting schedule calculator works out report dates in your browser, with no signup.
GrantClose gives every funder request and report one owner and a reminder schedule, and keeps the approval beside it. It never submits anything to a funder or gives legal, audit or compliance advice. Free for 1 active award. Create a free account
Questions
Do I need funder approval to move money between budget lines?
It depends on your agreement. For federal awards, 2 CFR 200.308, as read on 2026-10-19, does not list ordinary line transfers as needing approval, but section 200.308(i) lets an agency restrict transfers among direct cost categories at 10 percent of the total budget on larger awards. Foundation and state awards set their own rule. When unsure, ask in writing.
What is the 10 percent rule for grant budget changes?
Under 200.308(i), as read, a federal agency may choose to restrict transfers among direct cost categories when the federal share is above the simplified acquisition threshold and the cumulative transfers exceed or are expected to exceed 10 percent of the total budget, including cost share. It is the agency's option, so check your terms.
How long does a funder take to approve a budget revision?
For federal awards, 200.308(d), as read, says the agency or pass-through entity should notify you within 30 days of receipt, or say in writing when a decision can be expected. Other funders vary.
Does a change of key personnel need approval?
For a federal award, 200.308(f), as read, lists a change in key personnel named or identified by position in the award as needing prior written approval. Check which roles your agreement names.
Can I spend first and ask later?
Not if the change needs prior approval. The safe habit is to send the request first and wait for a written answer before committing the funds.
Sources read
- 2 CFR 200.308 (Cornell LII copy of the eCFR), read on 2026-10-19.