This Funding Proposals Software Development document shows how Eduardo Montes and Henry Douglas structured the internal funding request for the ProjectAdm SaaS platform — a $280,000 investment proposal submitted to ProjectAdm International's executive committee in December 2024. This example demonstrates how a funding proposal for a software development project is organized to address the financial, strategic, and operational concerns of internal sponsors and decision-makers.

What Is a Funding Proposal?

A Funding Proposal is a PMBOK 8 output in the Planning Performance Domain used to formally request financial resources for a project from an internal or external funding authority. It presents the project's cost requirements, the proposed funding source and schedule, the expected return on investment, and the conditions under which funds will be released. Unlike a Business Case (which justifies why a project should be done), a Funding Proposal focuses specifically on how money will be allocated, disbursed, and controlled. In internal software projects, this document is often submitted to a finance committee or board of directors to unlock budget approval.

What This Funding Proposals Software Development Includes

The ProjectAdm Funding Proposal presents a comprehensive view of the financial request and its justification:

• Funding Request Summary — Total request: $280,000; Base project cost: $238,000; Contingency reserve: $42,000 (15%); Funding source: ProjectAdm International operating budget (technology investment category); Requested release date: January 10, 2025
• Phased Funding Schedule — Phase 1 (Jan–Mar 2025, M1+M2 planning): $52,000 release; Phase 2 (Apr–Jun 2025, MVP Core): $68,000 release; Phase 3 (Jul–Sep 2025, SaaS Engine): $72,000 release; Phase 4 (Oct–Dec 2025, Advanced Features): $64,000 release; Phase 5 (Jan–Feb 2026, Go-Live): $24,000 release; contingency held in reserve throughout
• ROI Summary — NPV $412,000 over 5 years at 10% discount rate; payback period 3.2 years; IRR 28.4%; Year 3 projected ARR $705,600 at 1,200 paying customers; detailed financial model attached as Appendix A
• Funding Conditions and Milestones — Each phase release contingent on milestone acceptance by Henry Douglas; CCB review required for any reallocation between phases; contingency reserve draws require written change request and dual approval
• Alternative Funding Scenarios — Scenario A: Full internal funding ($280K) — recommended; Scenario B: 50% internal + 50% angel investment ($140K each) — rejected: equity dilution not justified at current stage; Scenario C: bank financing ($280K at 8.5% p.a.) — rejected: interest cost $23,800/year exceeds management reserve tolerance
• Cash Flow Forecast — Monthly burn rate: $17,000–$22,000 depending on phase; peak burn April–June 2025 ($68K over 3 months) due to parallel frontend/backend sprint execution; AWS costs: $1,200/month during development, $2,800/month post-launch
• Risk to Funding — Primary risk: scope creep exceeding contingency reserve ($42K); mitigation: CCB process with $5K threshold; secondary risk: team member departure increasing cost; mitigation: team retention plan (performance bonuses tied to milestone delivery)

How Eduardo Montes Used This Funding Proposals Software Development

Eduardo Montes submitted this Funding Proposals Software Development document to the ProjectAdm International executive committee on December 20, 2024, alongside the Business Case and draft Project Charter. The phased release structure was a key negotiating point — the executive committee approved the full $280,000 budget but required that each phase release be contingent on the previous milestone acceptance. This structure was incorporated into the Financial Management Plan and reinforced Eduardo Montes's authority as PM by tying budget releases to formal project governance gates.

How to Use This Funding Proposals Software Development Document

When structuring your own Funding Proposals Software Development document, build the phased release schedule around your project's natural decision points — milestones, go/no-go gates, or sprint reviews. This structure reduces the financial risk for the funding authority while giving the project team the certainty of committed funding contingent on measurable progress rather than on subjective sponsor confidence.

Download the Template and Deepen Your Knowledge

Ready to create your own funding proposal? Download the blank Funding Proposals Template (PMBOK 8).

• Download the Funding Proposals Template — PMBOK 8 (blank, ready to use)
• Read the full guide: Funding Proposals in PMBOK 8

Want to go deeper? The PMBOK Guide 8th Edition is the definitive reference for modern project management. Get your copy and use it alongside these examples to build a solid, practical understanding of every performance domain.

Format: Microsoft Word (.docx) | Project: Software Development (SaaS Platform) | PMBOK Edition: 8th (2025) | Domain: Planning