7 Common Errors that Disqualify Good Proposals

When it comes to European grant proposals, your budget is not just a formality—it’s a deciding factor. A great idea with a flawed or vague financial plan is one of the quickest ways to earn a rejection letter. After reviewing dozens of EU, EEA, and Nordic proposals, we’ve identified 7 common budgeting mistakes that derail even the most promising projects.

1. Unrealistic Staff Costs

Overestimating or underestimating salaries can signal a lack of market awareness or internal control. EU evaluators cross-check labor costs with regional benchmarks. If your hourly rates seem off—too high or suspiciously low—it raises red flags.

Quick Fix: Reference national or EU pay scales when calculating staff time. Be transparent about how costs are derived.

2. Ignoring Co-Financing Requirements

Many EU programs require a match (e.g., 20% from your organization or partners). Failing to indicate co-financing, or worse, claiming full funding when the program doesn’t allow it, is a common reason for rejection.

Quick Fix: Always check the call’s co-financing rules and clearly indicate your contribution in the budget summary.

3. Lumping Costs Together

Avoid vague line items like “project costs” or “general expenses.” Evaluators want to see breakdowns. Broad categories suggest a lack of financial planning and make your proposal harder to evaluate.

Quick Fix: Break down line items by activity and category—travel, equipment, personnel, subcontracting, etc.

4. Leaving Out VAT Considerations

Depending on your organization’s legal status, VAT might be eligible or ineligible. Many applicants forget to mention VAT or assume it will be covered, which can jeopardize your budget accuracy.

Quick Fix: Clearly state whether VAT is included and whether your organization is VAT-exempt or registered.

5. Inflating Equipment or Travel Costs

Evaluators have access to standard rates. If your travel or hardware costs appear inflated, they may question your integrity or suspect misuse of funds.

Quick Fix: Use public benchmarks or quotes to justify any major expenses. Include short justifications where relevant.

6. No Link Between Activities and Costs

Your budget should mirror your work plan. If there’s no connection between the timeline, activities, and budget, evaluators will struggle to assess feasibility.

Quick Fix: Use work packages or task-based costing. Every major activity should have a corresponding budget item.

7. Missing Budget Narrative

A beautiful spreadsheet won’t save you if you don’t explain why the numbers make sense. The budget narrative is your chance to justify and connect the dots.

Quick Fix: Add a short explanation per budget section—even 1-2 lines—so evaluators don’t have to guess.

Final Thoughts

Your budget speaks volumes about your project’s readiness. Make it accurate, transparent, and aligned with your implementation plan. A strong budget isn’t just about numbers—it’s a sign of strategic thinking and professionalism.