Photo: Flickr.com/photos/eric731/ Cross-posted from NewsChallenge.org

Several people over the last few days have asked me about the budget requirements of the Knight News Challenge, so I though I’d try to address it here.

The Knight News Challenge application asks three questions about money.

First, if you’re applying as part of an organization, nonprofit or forprofit, we ask for your operating budget. This is background information for us: we don’t evaluate your idea differently based on the size or existence of your organization.

Second, we ask for how much you’re requesting from us and for the total cost of the project. Here we ask for a number– not a line post budget. This requires some thinking on your part, obviously, and the answer can affect ‘how your application is evaluated. If you’re proposing to build a mobile crowd sourcing app for use across China and ask us for $5,000, we might arch an eyebrow. Likewise,we may look askance at your application if you ask for an amount that sounds inflated for the project you describe.

Last year’Jose Zamora had three tips for composing a budget that still apply this year:

1. Do your’research

2. Develop an accurate budget

3. Be’reasonable

Third, these budget numbers are not written stone: if you’re idea makes it to the second round, we’ll ask you to tell us more details about the project, including the budget. You’ll be able to rethink the scope, breadth and costs of your project at that time.

I hope that helps– feel free to ask any questions in the comment section– and or join us November 18, 2010 at 1:30 Eastern, for a Q&A chat about the Knight News Challenge application process.