Updated: Aug 29, 2021
Would you like to acquire public funding for a project, but are suddenly faced with more questions than answers? We know that all too well! Applying for funding is very similar to filing a tax return. In principle, the forms and conditions change every year and only the professional – the tax consultant – really knows their way around. There is also a lot of paper to fill.
The general approach of the federal and state funding providers is very simple. In most cases, the salaries of the employees involved in the project are funded. In simple terms, this means the following. For example, employee X and employee Y are each involved in the research and development project (R&D project) for 50% of their 40-hour working time. The R&D project has a duration of 2 years. This means that the employees participate in the project for 6 man-months per project year, totaling 24 man-months. If the gross earnings of the two employees are, for example, EUR 45,000.00 gross per year each, the personnel costs add up to EUR 90,000.00 for the entire duration of the project. Depending on the funding provider, project lump sums and/or employer contributions may be added. In the current example, we calculate with a 100% project flat rate (based on personnel costs). This results in a project sum of EUR 180,000.00. Small and medium-sized enterprises usually have a funding rate of at least 50%. In this case, the funding amounts to EUR 90,000.00. This simple example is merely intended to illustrate the basic idea behind the promotion. The number of employees can often be increased (up to a maximum funding amount).
