Indirect Cost Policy

Helps Education Fund has a policy to not pay indirect costs. Helps Education Fund will only pay research and project expenses that are directly attributable to project outcomes and outputs as direct costs for project activities in a mutually agreed upon scope of work.

We define “direct costs” as expenses required to execute an identified project that are directly attributable and can be reasonably allocated to the project.

Program staff salaries, travel expenses, materials, and consultants required to execute a contract are examples of allowable direct costs. These costs would not be incurred outside of contracted work identified in a project's scope of work.

Examples of allowable direct costs include:

  • Personnel. Salaries and wages of employees working directly on a project, including fringe benefits. These costs should be substantiated by time keeping and/or an allocation methodology, and can include directly attributable and allocable project management and support, project legal or accounting functions (substantiated by timekeeping).
  • Travel. Travel expenses for trips directly needed to deliver the project.
  • Consultants. Contracted staff working directly on the project.
  • Equipment. Costs for equipment directly used by the project (can include purchase/replacement, operation, maintenance; to be pro-rated in case of partial use).
  • Sub-awards. Grants or contracts with other organizations that directly contribute to the project outcomes.

We define “indirect costs” as general overhead and administration expenses that support the entire operations of a grantee or contractor and that may be shared across projects. These expenses would be incurred regardless of whether the project is funded by Helps Education Fund and are often indicative of indirect costs. Examples include facilities expenses (e.g. rent, utilities, equipment for the grantee's headquarters, and associated information systems and support and administrative staff such as HR, general finance, accounting, IT, and legal). None of these costs are allowable expenses for project supported by Helps Education Fund.