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v2026.1714 entries · CC-BY 4.0
Dictionary termTrack EStablev2026.2

Indirect cost recovery

The income an institution receives from sponsors as reimbursement for indirect (overhead) costs incurred in support of sponsored projects, calculated by applying the negotiated or sponsor-imposed indirect cost rate to the relevant direct-cost base.

ByCASRAI Editorial Board
· Last updated 21 May 2026

Examples

Worked examples

  • Is an instance

    A US university's F&A recovery on NIH grants in 2024 totalled $180 million.

  • Is an instance

    A UK research office calculates under-recovery against the full economic cost as part of TRAC return.

Counter-examples

Looks similar, but isn't

  • Not an instance

    Direct cost recovery (reimbursement of project-specific costs) is not indirect cost recovery.

  • Not an instance

    Tuition revenue is not indirect cost recovery.

Editorial commentary

Indirect cost recovery is a major revenue stream for research-intensive universities, often exceeding 100 million GBP/USD per year at large institutions. It funds general infrastructure (libraries, IT, buildings depreciation, central administration) and may be partially returned to faculties or PIs. Under-recovery (where the negotiated rate exceeds what sponsors actually pay due to programmatic caps or fixed rates) is a persistent funding gap, especially with foundations and EU schemes.

References

  • Council on Governmental Relations (COGR) Excellence in Research; UK Transparent Approach to Costing (TRAC).

Also known as

Overhead recovery · ICR · Indirect recovery

Machine-readable encodings

Use in your systems

JATS XML <role> element
xml
<role vocab="credit"
      vocab-identifier="https://casrai.org/dictionary/"
      vocab-term="Indirect cost recovery"
      vocab-term-identifier="https://casrai.org/dictionary/term/indirect-cost-recovery" />
Schema.org DefinedTerm (JSON-LD)
json
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  "name": "Indirect cost recovery",
  "identifier": "https://casrai.org/dictionary/term/indirect-cost-recovery",
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  "inDefinedTermSet": "https://casrai.org/dictionary/domain/funding-lifecycle-and-financial-vocabulary/",
  "url": "https://casrai.org/dictionary/term/indirect-cost-recovery",
  "sameAs": [
    "Overhead recovery",
    "ICR",
    "Indirect recovery"
  ],
  "license": "https://creativecommons.org/licenses/by/4.0/"
}

Adopted by research universities worldwide

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