GrantsManager
Budget & costs

Direct Costs

Costs that can be identified specifically with a particular project: salaries, equipment, supplies, and project travel.

Direct costs are expenses a sponsored project incurs that can be assigned to it with relative ease and a high degree of accuracy: the personnel working on the award, the materials and supplies they consume, project-specific equipment, participant costs, and travel.

They stand in contrast to F&A (indirect) costs, which support research broadly but can't be tied to a single project. Every line in a proposal budget is classified as one or the other, and that split determines how much indirect cost the award ultimately recovers.

Why it matters

Your direct-cost base drives how much F&A the award recovers. Misclassify a line and you under- or over-recover.

Full guide
Direct vs. Indirect Costs in Grants: Definitions, Examples, and How to Calculate Them

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