Equation for determining indirect or gift fees rates when based on expenditure

Data_Info_Graphicverbally- the amount you actually have to spend = award total / (100% + IDC or fee rate)

So if you have a $100,000 award with a 20% gift fee, you can determine your actual direct costs as follows:

amount you can budget for = 100,000 / (100%+20%)

or put more simply:

amount you can budget = 100,000 / 120%

then->

amount that will be assessed for fees= amount you can budget * fee%

explanation:

It’s easy to figure out indirect costs or gift assessment fees when they are part of the entire award (like 20% of the award), but it gets complicated when they are assessed based on how much you spend.

For example, if you have a $100,000 gift, then determining the gift assessment at 20% means:

100,000= X + 0.2X

where X= How much you can actually spend on your project (vs. the other part which reserved for “fees”)

So how do you express this in excel?

verbally- the amount you actually have to spend = award total / (100% + IDC or fee rate)

So if you have a $100,000 award with a 20% gift fee, you can determine your actual direct costs as follows:

amount you can budget for = 100,000 / (100%+20%)

or put more simply:

amount you can budget = 100,000 / 120%

 

 

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