Last Revised: 24 November 2025

1. Policy and Purposes

This policy outlines IBBIS’ approach to funding indirect costs (also known as “overhead” or “facilities and administrative costs”) for grant recipients. It applies to all grants made by IBBIS in pursuit of our mission.

2. Policy Statement

IBBIS can funds both direct project costs and a limited portion of indirect costs necessary to support grant activities. For all grant recipients, indirect costs may not exceed the following percentages of the total direct costs of the grant, for:

1. Government agencies: 0% rate
2. For-profit companies and foundations, private universities, and equivalent: 10% rate
3. Public universities, colleges, non-governmental organizations, and multilateral organizations: 15% rate

3. Definitions

3.1 Direct Costs

Direct costs are expenses incurred by the specific team, centre, or unit that is directly executing the granted project. These typically include:

1. Salaries and benefits for all staff within the executing unit (including support staff like event planners, communications leads, and executive assistants assigned to that unit)
2. Travel expenses for staff within the executing unit
3. Equipment and supplies used by the executing unit
4. Office space and facilities costs for the executing unit
5. Communications and events costs specific to the executing unit
6. Other expenses incurred specifically by the executing unit

For example, if funding a university research centre, all costs incurred by that centre (including its administrative staff) would be considered direct costs. If funding a specific program team within a larger organization, all costs incurred by that program team would be considered direct costs.

3.2 Indirect Costs

Indirect costs are expenses incurred by the broader institution or organization that houses the executing unit, which support overall operations but are not specific to the funded unit. These typically include:

1. Salaries for institutional leadership and administrative staff (e.g., university presidents, organizational CEOs)
2. Central administrative services (e.g., institutional HR, finance, legal departments)
3. Institution-wide IT infrastructure and systems
4. General facilities costs for shared institutional spaces
5. Institutional insurance and compliance costs
6. Other organizational overhead not specific to the executing unit

For example, if funding a university research center, costs incurred by the broader university or school would be considered indirect. If funding a program team within a larger organization, costs incurred by the organization’s central operations would be considered indirect.

4. Calculation and Application

The indirect cost rate is calculated as follows:

Indirect Cost Rate = (Total Indirect Costs / Total Direct Costs) × 100%

Example:

• For a grant with CHF 100,000 in direct costs
• Maximum allowable indirect costs would be:
  • For a government agency: CHF 0 (0%)
  • For a for-profit company: CHF 10,000 (10%)
  • For a public university or multilateral organization: CHF 15,000 (15%)
• Total maximum grant amount would be:
  • CHF 100,000 for a government agency
  • CHF 110,000 for a for-profit company
  • CHF 115,000 for a public university or multilateral organization

5. Important Notes

The percentage rates in this policy are the maximum ceiling. Organizations with lower actual indirect cost rates should budget their true rates rather than defaulting to the maximum.

For grants involving sub-awards, the percentage rate maximums apply to both primary recipients and sub-recipients.

IBBIS reserves the right to:

1. Request documentation supporting indirect cost calculations
2. Negotiate lower rates based on project-specific circumstances
3. Deny indirect cost requests that exceed actual organizational rates

6. Rationale

This policy aligns with our commitment to maximize the impact of our funding while ensuring grant recipients can maintain sustainable operations. The percentage cap reflects our focus on directing resources primarily toward project activities that advance our mission of pandemic prevention. This approach aligns with common practices among institutional funders in the philanthropic sector, who typically set defined limits on indirect costs to ensure efficient use of charitable funds while supporting grantee operations.

7. Questions and Contact

For questions about this policy or its application to specific grants, please contact us at info@ibbis.bio