Overhead and Administrative Costs Policy

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Type: 
Investment
Document ID: 
POL-INV-06
Version: 
1.1
Approved By: 
Board
Date Approved: 
03/26/2015
Date Effective: 
09/29/2016
Date Revised: 
09/29/2016

1.0  RATIONALE

The Ontario Trillium Foundation (OTF) supports grantees to achieve impact, while ensuring accountability of public funds. OTF recognizes that real, incremental overhead and administrative costs are required to provide and maintain a suitable working environment, 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

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

  • Incremental (new) overhead and administrative costs generated by the project (e.g. additional office space, additional office supplies, new communications equipment)
  • Pro-rata or apportioned costs of existing expenses (e.g. renting the building, heating and lighting the work area, supervision costs, insurance)

These do not include the direct costs to run or deliver a program, including program-delivering staff or equipment. These are eligible expenses that are part of a separate budget categories.

3.2 Emerging Governance Platforms and Mentorship/ Protégé Collaborations

​In the case of Emerging Governance Platforms and Mentorship/Protégé Collaborations, OTF will fund an additional amount of up to 10% of the total grant for indirect administrative costs for mentoring organizations.

4.0  DEFINITIONS

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

Emerging Governance Platforms and Mentorship/Protégé Collaborations: Emerging Governance Platform or Mentoring/Protégé Collaborations are arrangements by which an incorporated not-for-profit or registered charity or otherwise eligible organization provides governance, administrative support, project mentoring, and financial accountability to unincorporated or low-capacity groups delivering programs, services, or projects that benefit the community.

Incremental Cost: The new costs that arise as a result of the addition of the OTF-funded program.

Overhead and Administration costs: The ongoing expense of operating an organization which are not easily attributed to the direct costs of delivering programs and services. Overhead and administrative costs include items such as office or other space, utilities, back-office functions, and communications/IT.These do not include capital nor the direct personnel and non-personnel costs to run or deliver a program. These are part of separate budget categories.

5.0  KEYWORDS

Administration; Administrative; Budget; Finance; Financial; Overhead

​6.0  TARGET AUDIENCE(S)

☒ Staff           
☒ Volunteers
☒ Applicant Organizations
☒ Grantees  
☐ Partners

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