Fundraising Guide (English) June 2014 | Page 37

approval. Variances are differences between the original budgeted amount for an item or category of spending and the actual cost. Substantial variances are defined differently by funders. Some define “substantial” as a 5-10 percent change on an individual line item, while others call a 10 percent overall change in spending on the whole grant. Read your grant agreement carefully at the beginning of the grant period and make sure everyone involved in the project understands the requirements. If your grant award letter does not include information on budget variances, ask your