Indirect Cost Limits Policy

Indirect costs are general overhead and administration expenses that support the entire operations of a grantee or service provider, and that may be shared across projects. Examples include facilities expenses, (e.g. rent, utilities, equipment, information systems, and other facility support) administrative staff, (e.g. HR, general finance, accounting, IT, and legal) and other systems or infrastructure costs. Expenses that would be incurred regardless of whether the grant is funded are often indicative of indirect costs. While these costs may not be directly attributable to a project, they are real and necessary to operate as an organization.

The indirect cost rate proposed in proposal budgets, whether for grant funding or for service providers, should not exceed the lower of the proposing organization's indirect cost rate, or 15%, whichever is less.