Damon Runyon has the same policy as well. We do not cover any indirect costs. The Foundation college scholarships do not have overhead amounts.

Transcription

1 Question posted to HRA listserv by Sammy Hatter from the Leukemia and Lymphoma Society on February 5, 2013: Subject line: [HRA] Allowable indirect cost rates: Collecting updated information on HRA member organizations? Dear HRA members, The Leukemia & Lymphoma Society is contemplating a reduction across the board to our allowable indirect cost rates. Our Career Development Program is currently at 5%, the Translational Program is 11.1%, and our Specialized Center of is at 20%. In December, 2008, a query was posted to the listserv requesting indirect cost rates - the summary of responses to that question is attached FYI. Since four years have elapsed since that query was posted, some policies may have changed, and HRA also has a number of new member organizations. Please reply to this posting to share your current indirect/overhead allowance for each of your programs (or provide a high/low range if you have too many to list individually). In your reply, please also note whether your current rates represent a recent reduction; I may reach out to you individually to discuss implications and outcomes. If a sufficient number of responses are received, an updated response summary will be posted to the listserv page in the Members Only portion of the HRA website. Thank you, Sammy Hattar Responses received: Member Organization Autism Speaks The Cancer Institute Damon Runyon Cancer Avon Breast Cancer Crusade The Flinn Response Autism Speaks is still at 10% for research awards (no change to what is in the table). The Cancer Institute's policy has not changed. We do not cover any indirect costs. Damon Runyon has the same policy as well. We do not cover any indirect costs. Avon still caps ours at 10% The Flinn allows 9 per cent of grant awards to be used as overhead, unless those typical "overhead" funded support services are budgeted as line items in the proposal. Again, this 9 percent must be taken out of award amount and is not an add-on amount. The college scholarships do not have overhead amounts. Pew Biomedical Scholars The Pew Biomedical Scholars program allows 8% of the award to be used for indirect costs. The Pew Latin American Fellows program does not allow for overhead. Parent Project Muscular Dystrophy Melanoma Alliance PPMD pays 5% overhead on academic grants, which represents an increase from 0% (started in 2010). We do not ask industry grantees to distinguish between direct and indirect costs in their budgets. The Melanoma Alliance does not currently pay any indirect costs. Simons No change for the Simons. We provide 20%. Fighting Blindness The Fighting Blindness pays no indirect rate. This policy has always been in place.

2 Parkinson's Disease The Parkinson's Disease allows indirect costs of up to 10% for our competitive award programs. No indirects are permitted for fellowship awards. The American Heart Association policy has not changed regarding indirect costs. Up to 10% institutional indirects are American Heart Association allowed for grant programs. AHA fellowship programs, which are substantially stipend awards, do not allow indirect costs. Gerber No change for the Gerber. We are still at 10%. Doris Duke Charitable BCRF Samuel Waxman Cancer Alzheimer's Drug Discovery CURE Citizens United for in Epilepsy Alliance for Cancer Gene Therapy Children's Tumor March of Dimes JDRF W.M. Keck Susan G. Komen for the Cure Burroughs Wellcome Fund Ellison Medical New York Stem Cell The indirect cost rate for Doris Duke Charitable medical research grants is 8% of direct costs for all grants. IDC is capped at 20% of direct costs for all BCRF research grants. In 2008, the Board of Directors of the Waxman Cancer voted to reduce its indirect costs from 10% to zero. The impact on applicants/recipients has been inconsequential (which is not to say I don't receive the oft grumbling!) The Alzheimer's Drug Discovery does not pay any indirect costs. CURE does not provide support of any indirect costs. ACGT still caps indirects at 10% - unchanged for the last 10 years. The Children s tumor foundation caps the indirect costs to 10% too. Some institutes have huge overhead costs though sometimes up to 98%. The March of Dimes has always added 10% of the total as indirect cost allowance. We are currently continuing this. JDRF caps its indirect cost rate at 10% Equipment purchases (allowed only in Year 1) are not included in the calculation of the indirect. The W.M. Keck does not allow indirect costs to be charged to its grants. Komen's indirect rate remains at 25% of direct costs for all grants except Postdoctoral Fellowships, which do not provide for any indirect costs. Thanks to Sammy for raising this issue - reviewing our colleagues' rates on the list has reaffirmed my thoughts that we should revisit our rates. For Career Development programs we allow an "Institutional Allowance" which is primarily to support fringe benefits and secondarily to compensate the institution for administering the grant. The allowable administrative fee is 10%. However, very few institutions (less than 10%) take the administrative fee and those that do take an administrative take less than the allowable 10%. What is not taken is added to the awardee's research allowance. The Ellison Medical may be an outlier here, at least for our "Senior Scholar" Program for established investigators. For those awards we allow full indirect costs at DHHS-negotiated rates. For our New Scholar awards to support young investigator career development, we allow 8% of the total costs to be used for F&A. These policies have been in effect for more than 12 years. The New York Stem Cell does not cover indirect costs.

3 Fondation Leducq American Cancer Society Conquer Cancer Rita Allen Iacocca Family The cap at Fondation Leducq remains at 10% for our network program. ACS s rates and rationale are unchanged since the last poll. Our name has changed (from TACF to Conquer Cancer ) but our cap for indirects have remained the same (5%-7%) for our four major grants. The Rita Allen does not cover indirect costs. The Iacocca Family allows for 10% indirect costs. HHMI handles indirect costs differently across different programs: 1. Our graduate training grants and individual fellowships don't generally provide indirect costs. 2. HHMI Investigators don't receive grants (they are employees). Instead, HHMI pays the host institutions 'occupancy fees' for lab space occupied by HHMI Investigators. Howard Hughes Medical Institute LUNGevity Multiple Myeloma American Association for Cancer American Federation for Aging 3. The current HHMI International Program grants (in support of scientists who work outside the United States), provide approximately 10% for indirect costs: * HHMI International Early Career Scientist grants provide $250,000 in direct costs for year one and $100,000 for direct costs in years 2-5. For year one, an additional $25,000 was provided for indirect costs (10% of the direct costs) and in years 2-5, $10,000 was provided for indirect costs. Institutions can elect to put some or all of the indirect costs funds toward direct costs but can't shift additional money into indirect costs. * HHMI Senior International Scholar grants provide $100,000 per year including up to $10,000 per year in indirect costs (10% of the total grant). LUNGevity allows a maximum of 15% of the total award budget to be used for overhead/indirect costs. The MMRF has not changed its indirect rate which remains at 10 percent for all grants. AACR s indirect rate is calculated as 10% of total direct costs. Indirect is only allowed for our larger grants for independent investigators. Out of this category of grants, there are two exceptions, one grant allows only 8% and for one grant indirect is prohibited. This amount has been in place for a number of years. For the AFAR student and fellowship programs no indirect costs are allowed. About two years ago we allowed investigators supported through the AFAR Grant Program and Breakthroughs in Gerontology Program to budget up to 8% of their total award for indirect cost. The Julie Martin Mid-Career Award, sponsored by the Ellison Medical and administered by AFAR, always allowed 10% indirect cost on top of the award. The Beeson Scholars Program, a public-private partnership, allows up to 8% overhead which is paid entirely by the public partner, the National Institute on Aging. The indirect cost issue has been a recent topic at our board meetings. Some board members have raised the question whether institutions want their top people to apply for grants with the maximum amount of indirect dollars built in, and whether this affects both the quality and quantity of applications submitted. We have not pursued the issue further because we are not sure if this can be measured, but it will be very helpful to see an updated summary of IC policies of other organizations, so thank you for this question.

4 Indirect cost HRA membership organization analysis Spreadsheet summary provided by Sammy Hattar of the Leukemia & Lymphoma Society Organization Program name Indirect The Leukemia & Lymphoma Career Development 5.0% No None Society Program The Leukemia & Lymphoma Translational 11.1% No contemplating a reduction Society Program The Leukemia & Lymphoma Specialized Center of 2 No contemplating a reduction Society Autism Speaks 1 No Parent Project Muscular Dystrophy 5.0% No IDC was increased from 0% starting in PPMD does not ask industry grantees to distinguish between direct and indirect costs in their budgets. The Flinn 9.0% The Flinn allows 9 per cent of grant awards to be used as overhead, unless those typical "overhead" funded support services are budgeted as line items in the proposal. Again, this 9 percent must be taken out of award amount and is not an add on amount. The college scholarships do not have overhead amounts. Simons 2 No Indirect costs are limited to 20 percent of direct costs, with the following exceptions: equipment, tuition, pre and postdoctoral fellow stipends and benefits, any subcontracts with budgets including indirect expenses, and SCC biospecimens. Indirect costs paid to a subcontractor may not exceed 20 percent of the direct costs paid to the subcontractor. Melanoma Alliance No No IDC are paid currently Avon Breast 1 No Cancer Crusade Fighting Blindness No The 0% policy has always been in place Cancer Institute No Has not changed Damon Runyon Cancer Parkinson's Disease 1 Indirect costs of up to 10% for competitive award programs. No indirects are permitted for fellowship awards. American Heart Association 1 Up to 10% institutional indirects are allowed for grant programs. AHA fellowship programs, which are substantially stipend awards, do not allow indirect costs.

5 Organization Program name Indirect Doris Duke Charitable 8.0% Gerber 1 No Multiple Myeloma 1 No Samuel Waxman Cancer Yes In 2008, the Board of Directors of the Waxman Cancer voted to reduce its indirect costs from 10% to zero. Doris Duke Charitable 8.0% Breast Cancer 2 Citizens United for in Epilepsy Alliance for Cancer Gene Therapy 1 This policy has remained unchanged for the last 10 years. American Association for Cancer Range of 8 10% Indirect is only allowed for larger grants for independent investigators. Out of this category of grants, there are two exceptions, one grant allows only 8% and for one grant indirect is prohibited. This amount has been in place for a number of years. Career Development Awards, Fellowships and grants of that level do not have indirect as an allowable expense. Juvenile Diabetes 1 Equipment purchases (allowed only in Year 1) are not included in the calculation of the indirect. W.M. Keck Susan G. Komen 25.0% Komen s indirect rate remains at 25% of direct costs for all grants except Postdoctoral Fellowships, which do not provide for any indirect costs. New York Stem Cell Alliance for Cancer Gene 1 No Unchanged for the last ten years Therapy Children's Tumor 1 Pew Charitable Trusts Pew Biomedical Scholars program 8.0% The Pew Latin American Fellows program does not allow for overhead.

6 Organization Program name Indirect American Federation for Aging Range of 8 10% For the AFAR student and fellowship programs no indirect costs are allowed. About two years ago we allowed investigators supported through the AFAR Grant Program and Breakthroughs in Gerontology Program to budget up to 8% of their total award for indirect cost. The Julie Martin Mid Career Award, sponsored by the Ellison Medical and administered by AFAR, always allowed 10% indirect cost on top of the award. The Beeson Scholars Program, a public private partnership, allows up to 8% overhead which is paid entirely by the public partner, the National Institute on Aging. Ellison Medical 8.0% No Senior Scholar Program for established investigators allows full indirect costs at DHHS negotiated rates. For New Scholar awards to support young investigator career development, 8% of the total costs allowed to be used for F&A. These policies have been in effect for more than 12 years. March of Dimes 1 No This policy has always been in place. Burroughs Wellcome Fund Career Development Programs 1 For Career Development programs we allow an "Institutional Allowance" which is primarily to support fringe benefits and secondarily to compensate the institution for administering the grant. The allowable administrative fee is 10%. Fondation Leducq Network Program 1 No American Cancer Society Range of No 8 20% ACS provides up to 20% indirect costs on Scholar Grants, the bulk of ACS awards. ACS has felt comfortable with this approach because: (a) 20% is much less than the stated indirects rate at most research institutions, allowing the bulk of donors funds to be used for research related expenses; and (b) ACS research support is viewed as a partnership with the research institution. Also, all of the research institutions to which ACS makes grants have their own fundraising programs to underwrite the costs of bricks, mortar, endowed chairs, and other overhead expenses. ACS maintains an emphasis on the stewardship of publiclydonated funds. The ACS Mentored Scholar Grants in Applied and Clinical allows up to 8% indirect costs. The ACS Postdoctoral Fellowship includes $4,000 annually for a fellowship allowance. Other ACS funding mechanisms do not include indirect costs for research or training. In a time of tight funding it would be difficult for many funders to justify increasing the payment of indirect costs.

7 Organization Program name Indirect Conquer Cancer Range of 5 7% No Name has changed (from TACF to Conquer Cancer ) but the cap for indirects have remained the same (5% 7%) for the four major grants. Rita Allen Alzheimer s Drug Discovery Howard Hughes Medical Institute 1 HHMI handles indirect costs differently across different programs: 1. Our graduate training grants and individual fellowships don t generally provide indirect costs. 2. HHMI Investigators don t receive grants (they are employees). Instead, HHMI pays the host institutions occupancy fees for lab space occupied by HHMI Investigators. 3. The current HHMI International Program grants (in support of scientists who work outside the United States), provide approximately 10% for indirect costs: HHMI International Early Career Scientist grants provide $250,000 in direct costs for year one and $100,000 for direct costs in years 2 5. For year one, an additional $25,000 was provided for indirect costs (10% of the direct costs) and in years 2 5, $10,000 was provided for indirect costs. Institutions can elect to put some or all of the indirect costs funds toward direct costs but can t shift additional money into indirect costs. HHMI Senior International Scholar grants provide $100,000 per year including up to $10,000 per year in indirect costs (10% of the total grant). The Iacocca 1 LUNGevity 15.0%