Indirect Cost Policy
Effective April 20, 2025
Institute for Accountable Ocean Governance, a 501(c)(3) nonprofit organization, limits payment of indirect costs, also known as overhead or facilities and administrative (F&A) costs, to no more than 10% of total direct costs on all grants, contracts, and service agreements it funds.
This policy applies uniformly to every organization we fund or contract with, including colleges, universities, and their affiliated centers, institutes, and departments. It applies regardless of the recipient’s federally negotiated or institutional indirect cost rate.
Indirect costs are general operating expenses not directly attributable to the funded project, such as administrative salaries, accounting, facilities, utilities, and insurance. Budgets submitted to Institute for Accountable Ocean Governance should list indirect costs as a separate line item not exceeding 10% of total direct costs.