Lumen Impact Group
Lumen Impact Group

Crafting a Strong Budget Plan – Strategic, Data-Driven Use of Grant Funds

Published: March 10, 2025

At Lumen, we support organizations applying for grants in every stage, whether that’s kicking off with project visioning or supporting implementation. Lauren Outlaw, J.D. is our in-house grants expert, and in this blog series, Driving School Improvement Through Strategic Use of Grant Funds, she’s sharing a few things she’s learned along the way that may help your school craft a grant proposal that leads to maximum impact. 

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A budget that strategically builds in spending aligned to goals that will truly add value, not just “spend down the dollars”  is the foundation of successful grant fund management. Schools that take a data-driven approach to budgeting are better positioned to maximize the impact of grant dollars, ensuring that funds are allocated strategically to drive student success. A thoughtful budget plan ensures that every dollar is allocated strategically, aligning with long-term goals while anticipating challenges and remaining flexible in response to evolving needs.

Angi Beland, founder of Infused Evolution, brings deep experience in grant funding, budget strategy, and financial sustainability, collaborating with states, districts, and schools to implement systems that optimize resources and drive long-term impact. She explains:

“As [schools] look to build the budget, the best data is really their performance metrics… Looking at all key metrics, including leading tracking metrics, can help to identify gaps for teams to build solutions around. Solutions can then be fueled through strategic budgeting. When expenses outpace revenue, using data to drive priorities is key.” 

When schools identify the most significant areas of leverage to reach their outcomes, they are better positioned to spend their dollars in a way that will make the most impact.

Aligning Budgeting with Strategic Goals   

When crafting a budget with grant funds in mind, it can be tempting to simply focus on spending those funds. But, a data-driven budget plan is about aligning financial resources with the school’s broader mission and strategic vision. Schools should structure their budgets around core priorities, whether it’s improving student achievement, expanding access to resources, or strengthening teacher effectiveness. 

Beland champions zero-based budgeting as a powerful strategy:

“Zero-based budgeting [essentially] starts with the goals at the forefront and then the team engages around the identification of what investments are needed to reach goals. Too often, schools start with their ‘normal’ spends rather than starting fresh to imagine what they may need…”  

By integrating budgeting with long-term planning, schools can:   

  • Ensure Equity: Direct funds toward students and programs with the greatest needs.
  • Enhance Sustainability: Make investments that provide long-term benefits beyond the grant period.   
  • Support Educators: Allocate resources to professional development and instructional support.   
  • Improve Facilities & Resources: Invest in infrastructure, technology, and classroom materials that enhance learning environments.   

Building Flexibility into Budgeting   

While careful planning is essential, grant budgets should also remain flexible to accommodate unexpected challenges and opportunities. Schools can use data not only to plan initial allocations but also to track spending in real-time, adjust priorities as needed, and reallocate funds to maximize effectiveness. For instance, if enrollment trends shift mid-year or a new policy requirement arises, schools with a responsive budgeting framework can adapt without jeopardizing critical initiatives.  

Beland says, “When schools approach budgeting as an ever-changing process, it allows for more proactive adjustments when planned investments aren’t resulting in the desired outcomes.”    

Transparency and Accountability   

Just as stakeholder engagement strengthens the grant application process, maintaining transparency in financial decisions builds trust among families, staff, and funders. Schools that involve their leadership teams, finance committees, and key stakeholders in budget planning demonstrate a commitment to responsible stewardship of grant funds. Establishing clear processes for financial oversight (regular budget reviews and performance monitoring) ensures that schools stay on track and make the most of their grant dollars.  

Maximizing Impact Through Strategic Budgeting 

By combining data-driven decision-making with strategic financial planning, schools can move beyond compliance-driven budgeting and create a roadmap for meaningful, sustainable impact. A well-crafted budget is more than just numbers on a spreadsheet—it is a tool that empowers schools to fulfill their mission, support educators, and improve student learning experiences. By maintaining a strategic, flexible, and transparent approach to budgeting, schools can maximize the effectiveness of their grant dollars and drive lasting change in their communities.  

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