Building a Programmatic Budget -

You've been asked by the Executive Director of the Alphabet City Settlement House (ACSH) to prepare an annual budget, to send to a potential foundation funder, for a new Preschool Learning Program (PLP) for neighborhood children. The foundation has a general policy of paying an overhead rate of 10% of total costs, which is intended to cover administrative costs incurred by the grantee organization. You will need to factor that overhead figure into the budget you provide. The foundation also has a policy requiring grantees to match the amount the foundation funds, by raising an equal amount from other new gifts or grants specifically for the program. No such gifts or grants have been raised yet. The PLP is being given the free use of space (two rooms), including utilities, by ACSH. Each room has an occupancy limit of 40 people (Teacher, two Teaching Assistants, and 37 children) and would otherwise cost $15,000 annually to rent, including utilities. (This would not count toward the match.) The other costs are as follows:

Personnel Service Costs: 5% of the Executive Director's time @ $170,000, 10% of a Program Coordinator's time @ $85,000; 100% of two new Teachers @ $50,000 each; 100% of four new Teaching Assistants @ $30,000 each. State licensing requirements mandate a second Teaching Assistant when the number of children in a class exceeds 20. The fringe benefit rate is 25%.

Other-than-Personnel Service Costs: Books and other supplies, $600 per child. New audiovisual equipment, $9,000 per classroom (assume these items are below ACSH's capitalization threshold). In-kind use of space/ utilities - see above.

In the program's first year, ACSH expects to have 65 children in the program. How much money should ACSH request from the foundation, including the overhead amount, and how much would ACSH also have to raise to meet the matching requirement, to allow the program to break even? Prepare a line-item budget to support the request. Please round to the nearest dollar (if necessary).