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KBLX 102.9 FM Radio Weekend Tip! Nonprofit Budget Administrative Overhead/Indirect Cost/Expenses


What is Administrative overhead also known as Indirect cost   

How do I pay for my non- program expenses;   The CEO,   My administration team and   General expenses for administering program services–   Like; business permits, consultants, utilities and accounting   All of these costs can be included in your Program Grant applications as Administrative overhead or Indirect cost    

Most federal grants will require that you use a federal indirect cost rate which is annually adjusted, reviewed and approved by the federal government  

Non-federal grants accept a less complex formula as long as the formula is applied consistently for all funding sources.  

Federal Guide for indirect cost rates:
http://www.dol.gov/oasam/programs/boc/costdeterminationguide/cdg.pdf

Non-federal grant formulas
Are less complex and are usually based on a  calculation of 15% or less of every revenue source within the agency composite budget - That 15% or less is equal to and based on your defined administrative expenses.





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