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What is the appropriate F&A rate to use when a project is being transferred from another institution?

The F&A rate issued at the time of the award to the transferring institution will be honored. Note the National Science Foundation (NSF) requires the use of our negotiated rate unless otherwise mandated. 

If the F&A rate changes between the time of proposal and award or during the course of a project, which F&A rate should be used?

The F&A rate used in the proposal budget will be honored upon award if the F&A rate changes prior to award. Once awarded, the F&A rate remains fixed for the life of the award including subsequent supplemental increments of funding to the same award. For this purpose, competing renewals are considered new awards and should use the rate in effect at the time of the competing renewal submission.

What is the appropriate F&A rate for use on non-profit, foundations, or charities?

The F&A paid by the non-profits, foundations, or charities vary widely. The University is generally accepting of reduced rates on non-profits. If the non-profit does not specify a rate in their proposal solicitation or have a published policy, a rate of 10% Total Direct Costs (TDC) should be applied. 

What is the appropriate F&A rate for use on a foreign sponsored project?

The institutional negotiated rate should be used for foreign sponsors regardless if the funding originates from a foreign government or commercial sponsor. 

What is the appropriate F&A rate for use on an Industry Affiliate Program (IAP)?

Approved Industry Affiliate Programs are subject to an F&A rate of 15% Total Direct Costs (TDC). 

What is the appropriate F&A rate for use on corporate sponsored projects?

The applicable institutional negotiated rate should be used on all corporate sponsored projects unless institutional practice dictates otherwise. For instance, support for student competitions and Research Park internships have rates lower than the negotiated rate. 

What is the appropriate rate for the State of Illinois agencies and municipality’s sponsorship?

The F&A rate for State of Illinois agencies will depend on the prime source of funds. Principal Investigators or the submitting units are responsible for identifying the source of funding prior to submitting proposals to State of Illinois agencies or entities defined as Illinois municipalities or local governments.

For projects supported entirely with State of Illinois funds, the target F&A rate is 10% of Total Direct Costs (TDC) unless the sponsor specifies higher rates, in which case the higher rate should be used.

How do I determine if my project should be classified as either “research”, subject to the Organized Research rate, or “testing”, subject to the Other Sponsored Activities rate?

A research project typically has the following attributes: a) the work involves original, creative research and is expected to produce new science or technology; b) there is a substantial involvement of the Principal Investigator in defining the statement of work; c) University owns the results of the work.

When is the “Off-Campus” F&A rate applicable?

If a project involves work at on-campus and off-campus project sites, a single F&A rate should generally be applied consistent with where the majority of the work is to be performed. The criteria for use of the off-campus rate are as follows:

Are there exceptions to using the institutional negotiated F&A rate?

There are certain circumstances under which the institution may elect to accept a reduced F&A rate. Some examples of these circumstances follows: