Direct costs are costs that can be assigned to a specific cost center. In our case, the cost center is the grant project. For example, if a staff member will spend half-time working on your grant project, half of that person's wages (plus fringe) is a cost directly attributable to the total cost of the project. If the person is paid from your organization's normal funds (not from the grant), half the person's wages (plus fringe) is an in-kind contribution from your organization to the direct costs of the budget of the project.
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