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Can you charge grant-writing to your SBIR fund?

Reader question: Should I charge grant proposal writing at my small SBIR-funded company as direct or indirect costs? The grant proposal is for work in technology related to an already funded project.

Expert Comments:

You cannot charge grant writing as a direct cost. The expense of preparing proposals is usually indirect, and it cannot be included as part of the project’s cost.

At the same time, there are several ways to cover grant writing expenses. You can wait until you get the funding and use part of the indirect costs to pay the writer. Or if you have access to other, non-federal funds, you can borrow from them.

Alternatively, you can have a person who will be part of the project team help with the grant writing. Then bill that individual’s time accordingly as indirect costs for that proposal.

Rules differ depending on the institution or company. For example, a non-profit institution may not allow you to charge any grant preparation or grant writing costs toward a proposal.

Usually, SBIRs fund the salaries of researchers who are out in the field working with small start-up companies. In this case, you would typically charge grant writing to a non-federal source. For example, you might apply it to an estate, a trust or development, or some other discretionary fund.

For more information, review the NIH Guide http://grants.nih.gov/grants/guide for the list of allowable costs, and check the specific program announcement. You can find details about NIH’s Small Business Innovation Research program at www.grants.nih.gov/grants/funding/sbirsttr_programs.htm

Expert comments by Imeh Ebong, PhD, Assistant Vice President for Research at the University of North Florida, and Bill Walters, Contracts and Grants at the University of North Carolina at Greensboro.