Does Harvard University collect indirect costs on subcontracts to other institutions?
Per the University’s rate agreement with the Department of Health and Human services, indirect costs are charged on the first $25,000 of each subcontract; the remaining amount of each subcontract is exempt from Harvard overhead. What indirect cost rate should I use on a proposal to a foundation? The Kennedy School requires that all proposals include indirect costs at a minimum of 20%. If a foundation has a published policy (e.g. on a web site) to pay less than 20% overhead, the overhead shortfall must be addressed (see below). Many foundation web sites include information on the indirect cost rate allowed on proposals. If this information is not readily available, the Research Administration Office may be able to provide historical information on the overhead rate paid by foundations on past HKS grants. If the foundation does not specify an indirect cost rate, the Kennedy School recommends using a 20% indirect cost rate. What if the sponsor’s firm policy is to pay less than 20% overhea
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- Does Harvard University collect indirect costs on subcontracts to other institutions?