Applicants choose one of three methods to calculate allowable administrative costs – a
CNCS-fixed percentage rate method, a federally approved indirect cost rate method, or a
de minimis method. Regardless of the option chosen, the CNCS share of administrative
costs is limited to 5% of the total CNCS funds actually expended under this grant, per
section 121(d) of the National and Community Service Act of 1990, as amended and
AmeriCorps’ regulations at 45 CFR 2521.95 and 2540.110.
A. CNCS-Fixed Percentage Method Five/Ten Percent Fixed Administrative Costs Option
(Applicable ASN Applicants/Grantees Only):
The CNCS-fixed percentage rate method allows you to charge administrative costs up to a
cap without a federally approved indirect cost rate and without documentation supporting
the allocation. If you choose the CNCS-fixed percentage rate method (Section III.A. in
eGrants), you may charge, for administrative costs, a fixed 5% of the total of the CNCS funds
expended. To charge this fixed 5%, the grantee match for administrative costs may not
exceed 10% of all direct cost expenditures.
B. Federally Approved Indirect Cost Rate:
If you have a federally approved indirect cost rate, this method must be used, and the
rate will constitute documentation of your administrative costs, not to exceed the 5%
maximum federal share payable by AmeriCorps. Specify the Cost Type for which your
organization has current documentation on file, i.e., Provisional, Predetermined, Fixed, or
Final indirect cost (IDC) rate. Supply your approved IDC rate (percentage) and the base
upon which this rate is calculated (direct salaries, salaries, and fringe benefits, etc.).
AmeriCorps does not restrict the overall indirect cost rate claimed. It is at your discretion
whether or not to claim your entire IDC rate to calculate administrative costs. If you choose
to claim a lower rate, please include this rate in the Rate Claimed field.
C. De Minimis Rate of 10% of Modified Total Direct Costs:
Organizations who do not currently have a federally negotiated indirect cost rate (except
for those non-federal entities described in Appendix VII to Part 200—States and Local
Government and Indian Tribe Indirect Cost Proposals, paragraph (d)(1)(B)) and who receive
less than $35 million in direct federal funding may indefinitely use a de minimis rate of 10%
of modified total direct costs (MTDC). Additional information regarding what is included in
MTDC, and use of this option can be found at 2 CFR 200.414(f) and 200.68. If you elect to
use this option, you must use it consistently across all federal awards.
Per 45 CFR 75.2,
Modified Total Direct Cost
(MTDC) means all direct salaries and wages,
applicable fringe benefits, materials and supplies, services, travel, and up to the first
$25,000 of each subaward (regardless of the period of performance of the subawards
under the award). MTDC excludes equipment, capital expenditures, charges for patient
care, rental costs, tuition remission, scholarships and fellowships, participant support costs
and the portion of each subaward in excess of $25,000. Other items may only be excluded
when necessary to avoid a serious inequity in the distribution of indirect costs, and with the
approval of the cognizant agency for indirect costs.