Question: What Are Indirect Costs for a Nonprofit?
Answer:
The term "indirect costs" comes up in a variety of nonprofit settings, such as budgets for grant proposals and fundraising.
In general indirect costs are those costs that cover multiple activities and that occur on a regular basis. They are usually administrative in nature. In other words they can't be assigned to a particular product or service but are used to operate an organization as a whole.
Examples of indirect costs include accounting and legal expenses, administrative salaries, office expenses, rent, telephone, and utilities.
Indirect costs are sometimes referred to as "overhead."
