What are indirect costs, and how does RWJF handle them?
Indirect costs, or overhead, are those costs that are not easily identifiable in an economically feasible way as exclusively related to a particular project but are necessary to conduct the grant. Some examples of these costs are human resources department costs, payroll processing and accounting costs, janitorial services, utilities, property taxes, property and liability insurance, and building maintenance. As of July 1, 2006, the Robert Wood Johnson Foundation’s indirect costs rate for new grants is 12 percent. This increased rate only applies to new grant awards that start July 1, 2006, or later. Indirect costs are limited to 12 percent of total direct costs (Personnel, Other Direct Costs and Purchased Services). When Purchased Services total more than 33 percent of the RWJF portion of a budget, the Foundation limits indirect costs on the Purchased Services category to 4 percent. Applicants with a different indirect cost rate or other questions should call RWJF at (609) 627-5845. G
