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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