De Minimis Indirect Cost Rate
A flat indirect-cost rate, 10% of MTDC on NIH awards or up to 15% under the 2024 Uniform Guidance, that an organization without a negotiated rate may use.
Organizations without a negotiated F&A rate can recover indirect costs at a de minimis rate applied to Modified Total Direct Costs. The 2024 Uniform Guidance raised this rate from 10% to up to 15%, and recipients may use it indefinitely. NIH rescinded that change for its awards in April 2026 (NOT-OD-26-072), so NIH awards still use 10%.
It spares small organizations the work of negotiating a rate agreement, though an institution with high real indirect costs usually recovers more by negotiating its own rate.
For new or small recipients the de minimis rate is the simplest way to recover overhead without a rate negotiation.
Track this in GrantsManager
GrantsManager gives PIs and administrators one real-time view of proposals, awards, budgets, and compliance, so terms like this stop living in spreadsheets.