First a refresher — while fund raising costs are not typically allowed with federal dollars, the Rehabilitation Act specifically requires centers, and allows SILCs, to conduct Resource Development.  Rule number one, always call your activities to increase your resources (including funds) Resource Development. If you are a SILC this must be addressed in your State Plan for Independent Living.

Rule number two — it is wise to identify and track these costs separately. We suggest this because it is easy to spend more than you bring in if this office is not effective, and you want to know that so you can improve your efficiency if needed.

If you have a separate cost center for resource development, treating it as a direct cost, it must include that cost center’s fair share of the indirect costs based on your indirect cost rate proposal.

Some of you included resource development totally as an indirect cost. If so, then the answer to the question is that resource development costs are indirect, and should be allocated back across your cost objectives.

So, as is so often the case, the answer to our question is “It depends.” And it depends on what you said you would do in your approved indirect cost proposal.

Are Resource Development Costs direct or indirect?

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