Finance

The indirect cost rate (also known as the overhead rate) is a percentage used to allocate indirect costs—like administrative expenses, utilities, and facility maintenance—to specific projects or programs. These costs can't be directly tied to a single project but are necessary for overall operations.

The de minimis rate is a simplified, standardized indirect cost rate of 15% that certain organizations—especially small nonprofits or new grantees—who have not established a negotiated indirect cost rate can use when applying for federal grants.

If including mileage reimbursement as part of transportation expenses in your budget, you must use the standard mileage reimbursement rate set by the IRS. Each year, the IRS updates the rate based on fuel prices and other factors.

Uniform Guidance (2 CFR 200) is a set of federal rules issued by the U.S. Office of Management and Budget (OMB) that standardizes the administrative requirements, cost principles, and audit requirements for all federal grants and cooperative agreements.