What does "indirect cost" denote in grant management?

In grant management, "indirect cost" refers to expenses necessary for the overall operation of an organization, which are not directly attributable to a specific project or activity. These costs support the organization as a whole, enabling it to function effectively. Examples of indirect costs include utilities, administrative salaries, office supplies, and facility maintenance, which are essential for maintaining the infrastructure but are not linked to a specific grant project.

The other options highlight types of costs that are typically classified differently. Costs directly tied to specific project activities would fall under direct costs, as would fees paid to external consultants used specifically for project tasks. Marketing and communications expenses can also be direct costs if they are specifically related to a project, as they are aimed at achieving project goals. Therefore, understanding the distinction between direct and indirect costs is critical in grant management, as it affects budgeting and cost allocation in project proposals.