Creating a budget is frequently the most painful part of writing a grant proposal. On the other hand, creating a budget forces you to make all of the detailed decisions which give your project the specificity which most funding agencies require. The Research Administration Office can help you think your budget through, provide current fringe benefit and indirect cost rates, or work with you to design the budget. Most government agencies put severe constraints on what can be included in a budget, the maximum amount you can request, indirect cost recovery and specific cost restrictions, etc. Pay attention to the specifications they provide.
Foundations are usually less restrictive.
For both public and private sources, your budget should clearly and concisely state both where the money is going and where it is coming from. Most funding agencies will provide a budget form asking for the totals being requested for personnel, travel, equipment, etc. for each year. List the categories from the funding agency's budget form down the left margin, concluding with a total, and two sources of funds along the top, also concluding with a total. Cash matches are real dollars. In-kind matches are the value of services for which the university is already paying.