Jump to other news and events
Purdue signature

F&A Policy for For-Profit Companies, Foundations and Not-For-Profits

The following guidelines are to be used in determing the Facilities and Administration (F&A) cost on proposals to For-Profit Companies, Foundations and Not-For-Profits.

Decision Flow Chart

The Flow Chart provides a decision tree to assist in determining F&A on Industrial Proposals/Projects from 'For-Profit' companies and 'Not-For-Profits/Foundations'.

For-Profit Companies:

For proposals to "for-profit" companies, Purdue charges full F&A to all projects that are over $10,000 regardless of a company's "published guidelines" or written letter. If a proposal is under $10,000 then no F&A is charged unless proposal submission will result in total combined funding for that project from that company of over $10,000. F&A will then be charged to the amount in the proposal, but not assessed to the previously awarded amount.

If a proposal is being submitted to a "for-profit" company and the amount is over $10,000 but less than full F&A is budgeted, then the lower rate must be approved by the Director of Sponsored Program Services

Foundations and Not-For-Profits:

For proposals that are being submitted to foundations and not-for-profit organizations, full overhead should be charged to the project. However, if the foundation or not-for-profit has published guidelines limiting overhead or the total direct cost is less than or equal to $10,000, then a lower F&A rate may be applicable.

If there are published guidelines with a specified F&A rate, that rate should be used (the Total Direct Cost (TDC) based should be used in these situations unless stated otherwise in the guidelines).
If the published guidelines do not limit F&A, but the total cost is $10,000 or less, then no F&A is charged unless proposal submission will result in combined funding for that project of over $10,000 from that foundation. F&A will then be charged to the amount in the proposal, but not assessed to the previously awarded amount.