Negotiated Indirect Cost Rate Agreement (NICRA)

The approved rate for charging indirect costs to federal grants.

Definition

A NICRA is negotiated with a cognizant federal agency and sets the rate and base for charging indirect costs; organizations without one may elect the de minimis rate.

Why it matters

Budgeting indirect costs incorrectly can leave real operating expenses unrecovered for years.

Example

A nonprofit applies the de minimis indirect rate to modified total direct costs.

Related terms

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