Budget Modification Request Letter

After a budget has been set for a project, you may realize the need to make some changes. Such modifications could include downsizing the budget, requesting additional funds, or reallocating some money to different items or tasks. The most effective way to communicate these suggestions is through a formal request letter.

A budget modification request letter is a formal document requesting the revision of an approved budget. It often details the suggested changes and justifications for why you are making the request. In this article, we look at how to communicate a budget modification request effectively.

Generally, there are many ways to draft this letter. However, a typical request letter for budget modification should include the following:

  • The recipient’s address, name, and job title
  • The name of the project whose budget requires adjustments
  • Reasons for requesting the adjustments
  • Projected costs that may result from the modification.
  • Your contact information

Writing Tips for a Budget Modification Request Letter

A budget modification request letter is a sensitive document. It could mean the success or failure of your project. Consequently, it is essential to draft this letter professionally and adequately. Here are some guidelines to help you achieve this:

  • Include the recipient’s official name and job title. This should help ensure your letter is delivered to the appropriate authority. It should also help establish a reasonable connection with the reader.
  • Mention the specific project or event to which the budget is allocated. It is also essential to attach the document and mention it in the introductory paragraph. This will help the reader understand which budget you are discussing from the word go.
  • Provide a brief overview of the project and event. This is where you get to explain why the modifications are necessary. Remember, this is your chance to convince the reader that your request should be approved.
  • If there are specific lines to be modified, highlight them in the original budget, and attach the document to the letter.
  • Provide a projection of any additional costs the modifications might cause.
  • Include your contact information and offer to answer any further questions that the reader may have.
  • Close the letter with your official name, signature, and job title.
  • Use professional and courteous language.
  • Keep your letter short and to the point.

Budget Modification Letter Format


{Recipient’s Name/Job Title}

{Company/Organization Name}

{Company/Organization Address}

{City, State, Zip Code}

Re: Request to Modify the {Project Name} Budget

Dear {Mr./Mrs./Ms. Last Name},

I am writing this letter to formally request a revision to the {project name} approved budget. The {department name} requires this revision to {describe requested modifications}. This will allow us to {justify why these changes are necessary}. Please find attached the specific line item budget revisions.

As the project is time-sensitive, we will appreciate a response by {date} or at your earliest convenience. You can contact me on {phone number} or {email address} if you have more questions regarding this request.

Thank you for your time and consideration.


{Your Name}

{Job Title}

Sample Budget Modification Letter

11 August 2020

Accounts Manager

ABC Industries

123 Garden Road

Houston, TX 12345

Re: Budget Modification Request for Project New Brand Logo

Dear Mr. Seinfeld,

Upon the last bi-monthly review, it has become evident that the mentioned project’s approved budget requires some adjustments. This should allow my team to meet some emerging requirements. I have attached a document detailing the specific line item budget revisions.

As stated in the initial project proposal, we have hired a professional logo designer to provide expert assistance. This has cost us slightly more money than forecast in the original budget. We have also encountered other unexpected expenses in terms of production.

Kindly review the specific adjustment requests and get back to me at your earliest convenience. If you have further questions regarding this matter, contact me at 555 6788 324 or colindon@web.cm.

Thank you for your consideration.


Colin Donald

Project Director

Budget Modification Letter (Word Template)

File Format
  • MS Word


Every institution has a different budget revision policy. Before drafting your budget modification request letter, it is crucial to go through your company’s policy. If there is no written document, you can speak to your department manager or supervisor. Always use polite and professional language. Remember, you are making a request, not a demand. Explain your suggested amendments and why you think they are essential to the project.

Finally, make sure you follow up on your letter if you don’t receive a response in at least two business weeks.