Indirect Cost Policy 

Venn Foundation often provides Program-Related Investments (PRIs) and grants to support specific projects with specific outcomes in order to advance a charitable purpose. In such cases, the budget for each PRI and grant should reflect all of the expenses that are required for, and can be tracked directly to, that project. We call these costs “direct costs.” In addition, we may cover a limited amount of expenses that cannot be tracked directly to the project. We call these costs “indirect costs.”

Venn Foundation’s indirect cost policy provides that the indirect cost rate may not exceed 10% percent of the direct costs of the project, excluding the costs of third-party consultants, contractors, and vendors, which the PRI or grant recipient is engaging to conduct the project.

Please note that 10% of direct costs is the maximum Venn Foundation will pay toward indirect costs. A PRI or grant recipient with an actual indirect cost rate lower than the maximum rate provided above should not increase its request to the maximum allowed. The intent is to sufficiently fund actual costs, not to generate financial surpluses for recipients.