F&A Cost Rates - Non-federal Sponsors

The table below shows Facilities and Administrative (F&A) Cost rates typically reimbursed by these charitable foundations. These rates do not represent Harvard's actual indirect costs and are not used by federal or industrial sponsors who normally reimburse us for our actual negotiated rates. In cases where the rate could not be easily summarized by a figure, an asterisk (*) signifies that one should consult the attached list for details. Even when figures are provided, users of this table are advised to consult the attached list for further specifications and exceptions.

The information collected here should be used as a guide rather than a definitive statement about each sponsor's policy. Details follow the table:

Many sponsors, including those specifying a percentage for payment of F&A costs, emphasized that they decide to pay these costs on a case-by-case basis. In unusual cases, a sponsor that generally pays no F&A costs might make an exception and pay some of these costs. By contrast, a sponsor that generally does pay a certain percentage for these costs may elect to pay none of these costs or a lower percentage. Also, one or two sponsors prefer any project-specific F&A costs to be included as direct costs in the project budget. Finally, since some sponsors have flexible policies, different people from the same organization may describe the policy differently. Researchers with questions about a particular project should contact the sponsor.

AMERICAN CANCER SOCIETY
ACS makes different kinds of awards, some of which do and some of which do not pay F&A costs. Awards which do pay these costs pay a rate of 25% on direct costs, excluding permanent equipment. These awards include Research Project Grants, Clinical Research Training Grants for Junior Faculty, Research Opportunity Grants, and Targeted Research Project Grants. Programs which do not pay these costs include Postdoctoral Fellowships, Institutional Research Grants, Research Professorships, Clinical Research Professorships, Cancer Control Career Development Awards for Primary Care Physicians, Training Grants in Clinical Oncology Social Work, Physician Training Awards in Preventive Medicine, Scholarships in Cancer Nursing, Professorship of Clinical Oncology, and Professorship in Oncology Nursing.
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AMERICAN COUNCIL OF LEARNED SOCIETIES
There is a distinction between awards that ACLS makes directly and awards they administer. The kinds of awards ACLS makes directly are fellowships, i.e., awards to individuals, and F&A costs are therefore not applicable and are not paid. An example of an award administered by ACLS is the Viet Nam Fulbright Exchange Program, which is currently being administered jointly with the Harvard Institute for International Development. The funds, including F&A costs, are paid by the U.S. Information Agency, and Harvard is a subcontractor to ACLS.
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AMERICAN HEART ASSOCIATION
 AHA will pay up to 10% in F&A costs on awards that permit such costs. These awards include Scientist Development Grants, Established Investigator Grants, Grants-in-Aid, and some grants offered by the regional offices. F&A costs are not paid on fellowships.
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LYNDE AND HARRY BRADLEY FOUNDATION
 The Foundation's policy is to pay no F&A costs. Exceptions are made only very rarely and are judged on a case-by-case basis. back to top

CARNEGIE CORPORATION OF NEW YORK
The Carnegie Corporation does not have a fixed policy about payment of F&A costs. Payment of such costs is negotiable and decided on a case-by case basis. Carnegie will rarely pay more than 15% for F&A costs to a university.
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COMMONWEALTH FUND
Indirect costs may not exceed 10 percent of direct costs. This indirect cost allowance is to cover items such as rent, electricity, office furnishings and equipment, heat, accounting/staff services, library services, and the time of the organization's chief executive, financial, and administrative officers. If any of these charges is to be listed separately, then the sum of that charge and indirect charge cannot exceed the 10 percent allowance
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DORIS DUKE CHARITABLE FOUNDATION
Medical-Research/Program-Strategies/Clinical-Research/Clinical-Scientist-Development-Award/Frequently-Asked-Questions/ The total indirect costs for the duration of the award can be up to $12,000 per year for three years.
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FORD FOUNDATION
The Foundation permits payment of F&A costs where these are appropriate, and there is no fixed percentage rate. Decisions are made on a case-by-case basis and F&A costs are calculated only on the basis of costs related directly to the project. The Foundation tries as much as possible to put F&A costs into the direct cost budget.
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BILL AND MELINDA GATES FOUNDATION
The foundation's position is that, whenever possible, specifically allocable costs of an applicant organization's project should be requested and justified in the proposal as direct costs, including those for dedicated ongoing project management, facilities, and support (further definitions are provided below). Please note that our categorization differs from the U.S. Office of Management and Budget circular instructions familiar to many U.S.-based institutions, in which some of these expenses can only be treated as indirect costs.
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WILLIAM AND FLORA HEWLETT FOUNDATION
The Foundation prefers not to pay F&A costs at all and would like the funds it provides to go entirely to the direct costs of a project. When a grantee has no alternative, however, the Foundation will allow not more than 10% of the total amount granted to go to F&A costs.
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ROBERT WOOD JOHNSON FOUNDATION
As of July 1, 2006, the Robert Wood Johnson Foundation's indirect costs rate for new grants is 12 percent. This increased rate only applies to new grant awards that start July 1, 2006, or later. Indirect costs are limited to 12 percent of total direct costs (Personnel, Other Direct Costs and Purchased Services). When Purchased Services total more than 33 percent of the RWJF portion of a budget, the Foundation limits indirect costs on the Purchased Services category to 4 percent.
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HENRY LUCE FOUNDATION
With regard to indirect costs, the Foundation allows each of its programs to determine the appropriate rate on a case-by-case basis depending on the nature of the project and the amount being requested.
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KNIGHT FOUNDATION
Knight Foundation does not pay indirect administrative fees to grantee organizations. Exceptions may be made on recommendation the Knight Foundation program staff if it is determined that the grantee organization is providing a necessary service directly related to the grant. Based on the recommendation of program staff, on an individual case basis, Knight Foundation would consider indirect fee payments of up to 10% of a proposed grant.
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JOHN D. AND CATHERINE T. MACARTHUR FOUNDATION
The John D. and Catherine T. MacArthur Foundation recognizes that grantees may have overhead costs that are directly attributable to projects or activities being funded by Foundation grants but are necessary to carry out the projects or activities. The Foundation will consider paying for these indirect costs up to a maximum of 15% of direct project or activity costs. Indirect costs do not apply to general operating support or endowment grants.
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JOSIAH MACY, JR. FOUNDATION
The Foundation will pay up to 10% for F&A costs.

LUCILLE P. MARKEY CHARITABLE TRUST
305-445-5612
The Trust is no longer making new grants and has paid in advance for all ongoing grants. On Research Program Grants and General Organizational Grants, the Trust pays 10% of direct costs for F&A costs, and on Scholar Awards, the Trust pays 8% of direct costs for F&A costs.
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ANDREW W. MELLON FOUNDATION
The Foundation does not pay F&A costs. The only exception would be if they themselves solicited a project, and then they might pay 5 or 10%.
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CHARLES STUART MOTT FOUNDATION
The Mott Foundation does not have a written indirect cost policy. Mott prefers to fund direct project costs, but understands that, particularly with smaller organizations, the recovery of indirect costs is a necessity. The Foundation calculates indirect costs as a percentage of direct project costs. Indirect cost percentages are up to the discretion of the program officer. If the percentage appears reasonable, the Foundation usually approves the inclusion of indirect costs in the budget.
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NATIONAL MULTIPLE SCLEROSIS SOCIETY
The Foundation pays 10% F&A costs on Research Grants, Facility Awards, and Pilot Awards. It does not pay F&A costs on fellowships. Equipment is not covered.
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PEW CHARITABLE TRUSTS
F&A payments are limited to 10% of salaries and fringe benefits.
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ROCKEFELLER FOUNDATION
As a general rule, the Foundation pays 5% in F&A costs on grants of $100,000 or less and 10-15% on grants above $100,000.
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ALFRED P. SLOAN FOUNDATION
On Officer Grants, which are $30,000 or less, the Foundation will not pay F&A costs. On Trustee Grants, which are over $30,000, the Foundation will pay at most 15% of direct costs.
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SMITH RICHARDSON FOUNDATION
The Foundation pays 10% of direct costs for F&A costs.
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SPENCER FOUNDATION
It is the Spencer Foundation's policy not to pay indirect costs on any proposal requesting an award of $50,000 or less. For research grant proposals requesting over $50,000, the Foundation will pay indirect costs equaling up to 15% of the direct costs of the proposed project. The Foundation does not pay government-approved overhead rates on research grants. The following expenses are examples of charges the Foundation considers institutional infrastructure costs and will not allow as direct costs in a research budget: office rent, grants and contracts office expenses, institutional and departmental administrative expenses, institutional and departmental information technology expenses, and accounting and legal services.

For all other grant proposals requesting an award greater than $50,000 (e.g., fellowship and training grants), it is the Foundation's policy not to pay indirect costs. In these grant proposals, necessary administrative costs related to the request can be built into the direct costs of the proposal, but the Foundation will generally not accept institutional infrastructure costs to be included within the budget.

The Foundation reviews each budget individually for the appropriateness of the direct costs being requested.
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