Indirect Costs of Research

Office of the Vice-Principal Bureau de la Vice-principale
(Research & International Relations) (recherche et relations internationales)
James Administration Building, Suite 419 Pavillon James de l’administration, suite 419
Tel.: 514-398-2995        Fax: 514-398-8257 Tél. : 514-398-2995    Téléc. : 514-398-8257

Date: June 17, 2011

To/Destinataire(s): Deans
Associate Deans, Research
c.c. Anthony C. Masi, Provost
Marc Weinstein, Vice-Principal (Development and Alumni Relations)
From/De la part de: Rose Goldstein, Vice-Principal (Research and International Relations)

Subject/Object: Indirect Costs of Research
New rates for McGill University effective July 1, 2011*

Based on the recommendations of the McGill University Indirect Costs of Research Task Force, and in consultation with the Research Advisory Council, Deans and the Provost, the Office of the Vice-Principal (Research and International Relations) is making the following changes to the charge out rate for indirect costs from non-accredited funding sources:

• Indirect costs will only be recovered on annual amounts exceeding $10,000 CDN for all types of research support.
• Consistent with standard practices across the country, a minimum of 40% for indirect costs will be applied to research projects funded by industry. There will be no distinctions between “grants” and “contracts” in the private sector.  Industry sponsored grants and contracts that are matched through Tri-Council programs (e.g. NSERC CRDs, NSERC Strategic Projects and Networks, Networks of Centres of Excellence, etc…) will carry 25% indirect costs.
• All Clinical Trials will carry 30% indirect costs.
• All gifts received through Development and Alumni Relations for the purposes of research (not, for example, for teaching, endowments, scholarships, or fellowships) will require 15% indirect costs.

Changes to the distribution of indirect costs are currently being reviewed and will be the subject of a future communication.

Researchers are encouraged to better assess and maximize their direct as well as indirect costs and in doing so are also encouraged to seek the advice of Grants and Contracts Officers in the Office of Sponsored Research to develop budgets. Please refer to the Indirect Costs section on the OSR website for a fuller description and explanation of indirect costs of research at McGill: http://www.mcgill.ca/research/researchers/proposal/budget/#indirects .

The table included on the webpage will be updated on July 1, 2011 to reflect the changes listed in this document.

* The implementation of these rates will not affect grants and/or contracts that are funded or negotiated prior to July 1, 2011

* Grants for research/sponsored projects from non-accredited agencies, charitable organizations, foundations and not-for-profit organizations will continue to carry a 15% indirect costs rate.