Giving Compass' Take:
- Jennifer Adams explains that The Packard Foundation supplies indirect cost coverage as part of its equitable grantmaking effort.
- How can your funder better support organizations, especially those led by people from marginalized communities?
- Read about funders that are supporting nonprofit leaders' well-being.
What is Giving Compass?
We connect donors to learning resources and ways to support community-led solutions. Learn more about us.
When nonprofit organizations are financially healthy and resilient, they can spend more time focused on achieving their missions and less time worrying about making payroll, paying utility bills, and simply trying to stay afloat.
For the past six years, we have helped to cover our grantees’ indirect costs, or the expenses of doing business that are not tied to a particular grant but are necessary for an organization to operate.
As a result, we’ve taken it a step further and refined our approach. The Packard Foundation now provides a minimum indirect cost rate of 15-25% on project grants based on the grantee organization’s budget size.
When nonprofit organizations are financially healthy and resilient, they can spend more time focused on achieving their missions and less time worrying about making payroll, paying utility bills, and simply trying to stay afloat.
For the past six years, we have helped to cover our grantees’ indirect costs, or the expenses of doing business that are not tied to a particular grant but are necessary for an organization to operate.
As a result, we’ve taken it a step further and refined our approach. The Packard Foundation now provides a minimum indirect cost rate of 15-25% on project grants based on the grantee organization’s budget size.
Read the full article about indirect cost coverage by Jennifer Adams at The David and Lucile Packard Foundation.