Indirect cost rates for grants are subject to the following limitations:

0% Rate: Government Agencies, Other private foundations
Up to 10% Rate: U.S. Universities, U.S. Community Colleges
Up to 15% Rate: Non-Governmental Organizations (NGOs), Multilateral Organizations, Non-U.S. Universities, For-profit Organizations

• The rates provided above are the maximum rates allowed under the non-profit’s policy. A grantee or contractor with an actual indirect cost rate lower than the maximum rate provided above should not increase the funding request to the maximum allowed. The intent is to sufficiently fund actual costs, not to generate financial surpluses for grantees.
• The indirect cost rate awarded in a grant budget may vary up to the maximum percentages depending on factors including, but not limited to, the type of project, level of administrative effort required, cost structure of the grantee, overall grant size, and extent of sub-awards or commodity purchases.
• Maximum Indirect Cost Rates and limitations apply to both the primary applicant organization and any sub‐grantees. Each respective organization may receive indirect costs UP TO the rate applicable to their organization type.
• Readability Matters seeks consistency across funding mechanisms and thus reserves the right to apply this philosophy and principles to contracts.
• Readability Matters reserves the right to request substantiation of any grantee’s indirect cost rate.