Why Do Some Sponsors Not Pay F&A Costs?
Private foundations, nonprofits, and most charitable organizations that sponsor university projects state that their intention is to help support specific programs, but not to pay all of the costs of a project. They can therefore leverage their funding with other sources of support. Such sponsors typically limit the amount they will allow for F&A. Some federal programs (e.g., educational training grants) establish funding limits in much the same way as charitable organizations. This is more likely to be the case if no deliverables are required from the project director.
