A Complete Picture: How to Calculate and Communicate Indirect Program Costs

Many nonprofits avoid the word overhead, but without accounting for those costs, organizations don’t know what it takes to fully deliver an impactful program. Using an indirect cost rate allows organizations to capture the true cost of providing programs and services, and ensures each program and service covers its portion of common expenses, such as insurance, utilities, rent, and administrative staff. While many funders are beginning to understand the importance of covering general operating support, some still only want to fund program support; therefore, using indirect rates (when allowed) can be a great way to capture operating expenses associated with programmatic expenses and more easily communicate that story to your stakeholders.

Attendees will learn: the basics of indirect costs, how an organization can begin to calculate and utilize them, and how to communicate the importance of covering these costs within program budgets.