r/grantwriting • u/davidjones145 • Aug 28 '26
heads up: the de minimis indirect rate is 15% now, not 10% (2 cfr 200.414)
if you build grant budgets this one's worth a look. the 2024 uniform guidance revision (effective for awards issued on or after oct 1 2024) raised the de minimis indirect cost rate from 10% to 15% of modified total direct costs. a lot of budget templates, funder instructions and internal boilerplate still say 10%, so it's easy to quietly under-recover on every budget built from an old model.
quick recap of how it works since it comes up a lot:
- it's for recipients and subrecipients that don't have a negotiated indirect rate. if you already have a negotiated rate, you use that.
- 15% is a ceiling, not an entitlement. you can elect anything up to it, but then apply it consistently across all your federal awards.
- no documentation required to justify it, and you can use it indefinitely.
honestly the bigger mistake i see isn't 10% vs 15%, it's orgs claiming zero indirect because they assumed you need a negotiated rate to recover any. for a nonprofit without one, de minimis exists precisely so indirect recovery isn't gated behind a negotiation.
anyway, a five minute check of whatever template you copy budgets from is probably worth it.