How do fundable items differ from non-fundable items in a grant budget?

Fundable items in a grant budget refer to expenses that the funding agency will reimburse or support financially, meaning these costs are allowed under the terms of the grant. These items must align with the goals of the grant and follow the guidelines set by the funding agency. Examples of fundable items typically include project-related expenses such as personnel costs, supplies, and equipment directly related to the project’s objectives.

In contrast, non-fundable items are expenses that the funding agency will not cover. This might include costs that are not allowed by the grant terms, such as certain types of administrative expenses, entertainment costs, or items that do not contribute directly to the project’s goals. Therefore, the differentiation primarily lies in whether the items can be reimbursed by the grant, which underscores the essence of why fundable items are crucial for ensuring the project's financial viability and adherence to funding requirements.

Other options suggest conditions or limitations that do not accurately define the core distinction between fundable and non-fundable items, such as project impact, exceeding budget limits, or documentation requirements. These factors can play a role in funding considerations but do not directly determine whether an item is classified as fundable or non-fundable.