Overhead and Administrative Costs Policy

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Type: 
Investment
Document ID: 
POL-INV-06
Approved By: 
Board
Date Approved: 
03/12/2020

1.0  RATIONALE

The Ontario Trillium Foundation (OTF) supports grantees to achieve impact, while ensuring accountability of public funds. OTF recognizes that incremental overhead and administrative costs are required to support management and administration expenses of the funded project, ultimately increasing the impact achieved by grantees. 

2.0  PURPOSE

This policy defines eligible overhead and administrative costs for OTF funding and details the eligible scope of expenses.

3.0  POLICY

​3.1 Eligible Expenses for Overhead and Administrative Costs

OTF will support overhead and administrative costs directly associated with the funded project to a maximum of 15% of the total OTF grant budget. Eligible overhead and administrative costs include:

  • Incremental (new) overhead and administrative costs generated by the project (e.g. rent for additional office space, bookkeeping costs required for the project)
  • Pro-rata or apportioned costs of existing organizational expenses attributed directly to the OTF funded project (e.g. the relevant portion of current rental space or heating costs, or a portion of existing staff time to supervise or provide financial oversight for the funded project)

Capital expenses, or direct program costs such as materials and program staff as well as direct personnel and non-personnel costs to run or deliver a project are not considered overhead and administrative expenses and are separate budget categories within the Financial Workbook.

4.0  DEFINITIONS

Overhead and Administration costs:
The ongoing expenses of operating an organization. Overhead and administrative costs include items such as office space, utilities, back-office functions (i.e. technology support, bookkeeping, human resources and project oversight). 

Incremental Costs:
New administrative/overhead costs attributable to the OTF funded project.

Apportion or Pro-rata Costs:
The portion of existing administrative costs attributable to the OTF funded project.

5.0  KEYWORDS

Administration; Administrative; Budget; Finance; Financial; Overhead

​6.0  TARGET AUDIENCE(S)

Staff, Volunteers, Applicant Organizations, Grantees, Partners

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