Creating an accurate, well-evidenced budget is crucial for your crowdfunding success. Here's how to cost up your project properly:
Think about your overall project value
Remember, you will need to raise the money yourself, so it's important that your project value is realistic relative to the amount you believe is potentially available to you. Spend a bit of time thinking about your crowd. How big is it? Who could potentially donate £100, £1,000 or even £10,000. As a general rule, we suggest that if you are pitching to a partner fund, then a project size which is 3x the value of the maximum award available is normally realistic.
For example, if your local council has a Fund on Spacehive with a maximum award of £10,000, then you should consider anything up to £30,000 as a realistic target to aim for. Anything above that will require additional planning and sounding out of high value backers.
List your costs clearly
Break down your project into individual items:
Be specific about what each item is
Use clear, simple descriptions
Group similar items together
Include all essential costs
Add a reasonable contingency
For example, for a community garden project:
"10 raised beds with soil and edging - £2,500"
"Tool shed with basic equipment - £800"
"5 fruit trees including planting - £450"
Understand cost types
Capital costs
These are physical assets that last 5+ years, such as:
Building works
Equipment
Land purchase
Permanent installations
Infrastructure improvements
Revenue costs
These are running costs and temporary items, such as:
Staff or freelancer time
Workshop materials
Marketing
Insurance
Event costs
Consider VAT
Check if quotes include VAT
Add 20% VAT if your supplier is VAT registered
Remember VAT applies to most goods and services
Include VAT in your target if you can't reclaim it
Provide evidence
For each cost item, you'll need evidence like:
Written quotes from suppliers
Screenshots of online prices
Professional estimates
Email confirmations
We don't accept:
Your own spreadsheets
Outdated quotes
Rough estimates without backup
General budget documents
Be thorough but realistic
Get multiple quotes for large items (over £5,000)
Research similar projects for cost comparisons
Include all necessary elements
Don't pad your budget unnecessarily
Be ready to explain your costs to backers
Common mistakes to avoid
Forgetting VAT
Underestimating costs
Missing out essential items
Not getting written quotes
Being too vague with descriptions
Getting help
If you're unsure about costs:
Talk to similar projects
Consult relevant professionals
Check our project archive for examples
Ask suppliers for advice
Remember: A well-researched budget gives backers confidence and helps ensure you can deliver your project as promised.