GORC has established the Indirect Cost Policy in recognition that project executing organizations have indirect costs that are not directly attributable to projects or activities being funded by GORC grants but are necessary to support grant-funded projects or activities.

It is the policy of the GORC to provide an indirect cost recovery of a percentage of project costs on all project grants.

GORC considers all costs as indirect costs except the activity specific expenses. The direct and indirect costs are identified below

The costs identified specifically with a project’s activities are categorized as direct cost. These are recorded as incurred with a series of pre-assigned budget lines. No further distribution is needed.

The cost incurred for achievement of common or joint objectives and cannot be readily and specifically identified with a single project activity or objective are categorized as indirect costs. These costs are grouped into common pool(s) and distributed to benefiting activities by a cost allocation process.
Indirect costs are costs for activities or services that support the organization as a whole rather than any particular program or project, including administrative and fundraising costs. These are not costs associated with the delivery of program services; nonetheless, they are essential costs of maintaining and managing the organization through which program services are delivered. Examples of such costs include finance and accounting support, human resources, bank fees, board meetings, and fundraising. In submitting a project budget, grantees will not be required to quantify these indirect costs.

For the GORC, the indirect cost rate is a mechanism to determine fairly and conveniently, within the boundaries of sound administrative principles, what proportion of indirect cost each program should bear.
The indirect cost rate differs for different organizations, as given below: