Accounting & ConsultingFEDERAL INDIRECT COST RATE APPLICATION

INDIRECT COST RATE APPLICATION

For non-profits, indirect costs are costs related to grants which are not uniquely identifiable. These are items such as your grant administration support salaries, space, supplies, communications, etc. Many grants allow you to charge an indirect cost on each grant, but only if you have an indirect rate approved by the Federal government. The application process for an indirect cost rate is very tedious and time consuming and it is often beneficial for a non-profit to outsource this task.