Indirect Cost Guide



This guide was developed to assist Division of Cost Allocation (DCA) staff in reviewing and negotiating indirect cost proposals for nonprofit organizations. Grantees will find this guide useful when preparing for indirect cost rates negotiations. The guide presents a number of ideas, facts and concerns that should be considered during the review of indirect cost proposals. Alternative approaches and allocation methods, including their strong and weak points are presented and discussed in detail. To read PDF files, get here.

Indirect Cost Guide Indirect costs are those expenses that benefit common activities and therefore cannot be readily assigned to a specific cost objective or project. At nonprofit organizations, such costs normally are classified into one overall pool of costs. This pool is then divided by the allocation base the nonprofit organization has chosen in order to calculate a rate. The preparation of an indirect cost proposal can be a significant undertaking for a nonprofit organization that generally has to be done on an annual basis. The decision that a cost proposal needs a more in-depth review and analysis by the DCA will be influenced by many factors. One purpose of this review guide is to help a negotiator identify factors that will help determine what type of review is necessary. More>>> [PDF, 67.9KB].

Indirect Cost Guide. HHS/PSC/DCA. 2003. English. [PDF, 67.9KB].