Policy for Indirect Costs

Definition

Indirect costs are general overhead and administration expenses that support the entire operations of a grantee and that may be shared across projects. Examples include facilities expenses, e.g. rent, utilities, equipment not specific to the grant in question, associated information systems, and support and administrative staff such as HR, general finance, accounting, IT, and legal. Expenses that would be incurred regardless of whether the grant is funded are often indicative of indirect costs.

Purpose

While these costs may not be directly attributable to a project, the PCD Foundation recognizes that they are real and necessary to operate as an organization. Indirect cost awards are provided in recognition of these real-world needs.