When federally funded organizations incur shared costs that benefit multiple funding awards it can be difficult to determine how much to charge each award for those costs. Allowable methods of shared cost recovery vary, and organizations weigh factors such as size, resources, experience, staffing, or preference when deciding on their best option for doing so. CAPLAW and Kay Sohl Consulting developed this resource to explore one such option for shared cost recovery: direct cost allocation. Being Direct: Shared Cost Recovery through Direct Cost Allocation discusses factors to weigh when deciding whether to fully recover costs using direct cost allocation principles; how to recover costs using a cost allocation plan; and allowable and unallowable cost allocation methods. It also includes a sample cost allocation plan and examples.
On November 15, 2023, Kay Sohl and CAPLAW staff hosted a webinar to walk through the Cost Allocation Toolkit and answer questions. View the webinar here.