Indirect Cost Policy
The Georgia Forestry Foundation (GFF) supports the Georgia Forestry Association (GFA) and provides programmatic support of the mission and goals of GFA. The Foundation adopts this Indirect Cost Policy in recognition that nonprofit and other research organizations have indirect costs that are not directly attributable to projects or activities being funded by Foundation grants but are necessary to support grant-funded projects or activities.
GFF shall provide an indirect cost recovery of twenty percent (20%) of project costs on all project or research grants.
This indirect cost policy applies only to project grants to nonprofit organizations, academic institutions and organizations conducting scientific research. Grants not eligible for indirect cost recovery include general operating support grants, endowment grants, and grants made to large, well-established organizations for the purposes of supporting the general operations of a separately managed center.
This policy is effective September 1, 2021.
Project costs are the portion of a grant intended to fund project activity costs, including both the costs specific to an individual project and those shared organizational costs from which a project directly benefits.
Specific project costs are those costs that are specific to a grant-funded project, such as salaries for project staff and materials required for the project. These costs would not be incurred if the project being funded did not exist.
Shared project costs are those that benefit multiple programs or projects and can be assigned or allocated across programs or projects in a reasonably consistent and accurate way. Examples of such costs include occupancy and facilities, utilities, telephone/internet access, etc. Note that these costs are generally non-personnel costs.
Indirect costs are costs for activities or services that support the organization as a whole rather than any particular program or project, including administrative and fundraising costs. These costs are not associated with the delivery of program services but are essential costs of maintaining and managing the organization through which program services are delivered.
Examples of the different types of costs are listed below:
Specific Project Costs
- Personnel costs (wages and benefits) of staff working on grant-funded project.
- Professional fees for consultants working on grant-funded project.
- Travel expenses directly related to the grant-funded project.
- Supplies and materials used for the grant-funded project.
- Sub-grants made to other organizations to directly support work on the grant-funded project.
Shared Project Costs
- Rent and occupancy costs allocated to the grant-funded project.
- Utilities, telephone, and internet costs allocated to the grant-funded project.
- Personnel costs of administrative staff.
- Professional fees for consultants working in administrative and fundraising functions.
- Rent and occupancy costs for facilities occupied by administrative staff.
- Corporate insurance costs, bank fees, credit card fees, and indirect expenses