Indirect Costs
Indirect costs are a partial reimbursement by the funding agency for the expenses borne by the University to conduct the sponsored project. These costs include utilities, maintenance, accounting support, research administration services, and other institutional costs.
Illinois State's rates are negotiated with the U.S. Department of Health and Human Services (HHS) and based on expenses to support sponsored programs on campus. The negotiated rate is typically applied to programs on a modified total direct cost (MTDC) base. The following items are EXCLUDED from MTDC (no indirect costs assessed on these items):
- Equipment over $5,000 and a useful life of greater than one year
- Portion of a sub-award over $25,000. The $25,000 threshold for sub-awards applies over the life of the award. Each new sub-award is included in the MTDC base up to $25,000
- Participant Support Costs
- Tuition Costs
- Scholarships and Fellowships
- Capital Expenditures
- Rental Costs
As well, indirect costs are not assessed if the total grant is less than $4,000.
Indirect costs are distributed for use to academic units and academic support units according to University policy.
View Our Federally Negotiated Indirect Cost Rate Agreement
Illinois State has four separate rates to apply to projects. View the different types and rates for each:
| Dates | Type of Project | Rate |
|---|---|---|
| July 1, 2020 - until amended | Organized Research – On Campus | 48% |
| July 1, 2020 - until amended | Instruction | 40% |
| July 1, 2020 - until amended | Other Sponsored Activities | 35% |
| July 1, 2019 - until amended | All Types – Off-Campus | 26% |
Organized Research
Organized research and related scholarship activities include projects that engage in rigorous inquiry, experimentation or investigation to increase the scholarly understanding of the involved discipline. These activities may be sponsored by federal and non-federal (i.e. private, foundation) organizations or may be supported by internal funding.
Instruction
Instruction includes all teaching and training activities of an institution whether offered for credit toward a degree or certificate or a non-credit basis, and whether they are offered through regular academic departments or separately created programs. The term 'instruction' does not include research training, as all research training would be included in either organized research or other sponsored activities.
Other Sponsored Activities
Other sponsored activities are applicable to projects that do not fit into the organized research or instruction categories. Travel grants, support for conferences or seminars, community service programs, or university public events.
Off-Campus
Projects conducted in facilities not owned by Illinois State, when rent is directly allocated to the project, or where more than 50% of the activities are performed at locations off campus qualify for the off-campus rate. Projects conducted by employees working hybrid or remote do NOT qualify for the off-campus rate unless the preceding criteria are met.
Request for Cost Reduction
Requests for a reduction of costs are submitted on the Request for Reduction/Waiver of Indirect Cost Rate Form, and need to be approved by your chair, college, and the associate vice president for research.