Faculty have shown an increasing interest in industrial firms, private foundations, non-profit organizations and state block grant programs as a source of funding for research and training.  Potential applicants should be aware that these sources often have guidelines for reimbursement of full costs that are different from those normally followed by Federal agencies.  Preliminary discussions with these granting agencies should clearly indicate that full costs of the programs activities include reimbursement of both direct and indirect costs.

        Indiana University Policy requires that full indirect costs be included in all proposal budgets requesting external support.  Requests for deviations from this policy must be submitted to either the campus research office or Contract and Grant Administration at least one week prior to the actual processing of the proposal in order to assure no delay in meeting agency guidelines.  Exceptions to the policy are made for proposals to the State of Indiana, for matching fund proposals and proposals where the agency guidelines state that less than full indirect cost will be paid.  Non-federal organizations whose guidelines will not permit indirect cost will be reviewed to determine if some of the indirect cost items can be included as a direct cost.

        As always, faculty members are encouraged to make informal contacts with funding agencies during preliminary grant application stages.  However, discussions involving any budgetary commitment, including indirect costs, may only be initiated by the campus research office or Contract and Grant Administration.  All budgets, preliminary or otherwise, must be sent through the regular university routing process before they are presented to potential sponsors.