Creating a budget for a grant request includes direct costs to execute the project and indirect costs that represent general organizational operating expenses. Include operating and maintaining costs, management support services and communication infrastructure costs as indirect costs to the grant project, the Environmental Protection Agency recommends. Because some grants have limits on indirect costs in a grant proposal, read all of the instructions carefully before creating the budget for your grant. For example, to be charged to a grant as an indirect cost, items must be allowable, reasonable and allocatable, according to the U.S. Department of Labor.
Facilities
The cost of operating and maintaining a work space supports all organizational activities -- not just the single project under the current grant proposal. Typical facilities costs you may incorporate as indirect costs in your grant proposal include rent, maintenance and computer connections such as local area networks, according to the U.S. Geological Survey. Include personnel costs associated with maintaining computer systems, phones and general-purpose equipment. Charge equipment purchased solely for use on the grant as a direct cost.
Administrative
Indirect administrative costs incorporate expenses for senior management and executive staff salaries as well as their clerical and administrative support staff. Personnel services such as accounting and human resources classify as administrative expenses. Office supplies available to all projects or exclusively for use by indirect staff, general training and training staff fit within indirect administrative costs for most grants.
Regulations
Calculate indirect costs for your grant proposal with due consideration of applicable cost principles as stated in Circulars such as the Office of Management and Budget's A-110 and Federal Acquisition Regulations (the regulations the federal government uses to administer grants) called out in the grant application, the Department of Labor recommends. Locate backup financial data to support indirect cost claims from previous audits and financial statements. Review the grant proposal budget to ensure consideration of all activities carried out by the organization, other than those on the proposed project. Costs to comply with requirements may represent indirect costs to the organization.
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