INDIRECT COST POLICY
Pilgrim Africa’s mission is to challenge despair, love boldly, and help African people create a future of sustainable prosperity and health. We believe integrated, cross-sector transformation is necessary to revitalize the core aspects of African society, and we seek to create catalytic change through our many partnerships at the local, national, and international levels. Pilgrim Africa strives to empower local populations with interventions in public health and education.
For each of our projects, we work visibly in and with a community to demonstrate real impact on a large scale. We aim to structure partnerships in a way that makes sense from a financial perspective while also funding partners for the cost of delivering results efficiently, supported by transparent dialogue about the resources required.
Direct costs are those that can be completely attributable and reasonably allocated to the project. Program staff salaries, travel expenses, materials are some examples of direct costs.
Indirect costs, also known as overhead and more recently defined by the federal government as Facilities and Administration (F&A), are those costs that Pilgrim Africa incurs for common or joint objectives that cannot be identified easily with a particular direct project or activity. These costs are general overhead and administration expenses that support the entire operations of a partner and that may be shared across projects.
Indirect costs are assessed on a percentage basis against the direct costs of the project — including salary, fringe, supplies, administrative costs, travel, consultants, subcontracts, maintenance contracts, etc.
Pilgrim Africa’s F&A policy rate is 6% for both private and public sources.
This rate is the maximum we allow under Pilgrim Africa’s policy. If a partner has an indirect cost rate lower than the maximum provided above, the partner should not increase the funding request to the maximum.
We welcome partners to contact Pilgrim Africa if they have questions about this policy. Our team can help clarify appropriate treatment of costs under our organization’s policy.
Please contact us at firstname.lastname@example.org for more information.