Donors and Indirect Costs (Administration Costs): Why Many Donors Don’t Want to Fully Cover Implementers’ Indirect Expenses: A Report from Humentum
While USAID and the US federal government have been supportive of Negotiated Indirect Cost Rate Agreements (NICRAs), many other donors (World Bank, Gates Foundation, etc.) impose caps on indirect cost rates or restrict reimbursement for administrative support. They think doing so allows more funds to flow directly to beneficiaries. However, what these donors often overlook … [Read more…]