What percentage of overhead will the Fund allow in a grant budget?
The Commonwealth Fund allows overhead to be charged at a rate not to exceed 10 percent of total direct costs. We consider direct costs to be those costs directly related to carrying out the project for which the Fund is providing support (i.e., project staff salaries and fringe benefits, travel, consultants, meeting expenses, office expenses). Subcontracts with an institution and direct educational support (including fellowships, scholarships, tuition, and stipends) are excluded from the indirect cost calculation. The 10 percent allowance is intended to include space rental, furniture, equipment, heat, electricity, accounting services, library services, and the like. If any of these charges is to be listed separately, then the sum of that charge and indirect charge cannot exceed the 10 percent allowance.
