Noor, this isn’t how endowments work. Unrestricted endowments do exist, but they are not as common as donor restricted ones, in which the spending can only be used for a specific purpose. Often those restrictions are very narrow, and the university cannot change the terms without agreement from the donor, or they find themselves in legal trouble (not to mention risking new donations in the future!). Plus, the university can’t spend the corpus of the endowment, only the annual spending, which at the last institution I worked for where I was involved with the endowment was about 4%. So a $50B endowment might give them $2M a year, depending on the market performance the previous year. In research, $2M isn’t going to take you very far, as I’m sure you know. It certainly won’t cover an entire university’s research activity (much less offering grants to other institutions!).

 

Brigette Pfister, MHRD, CRA

Financial Compliance Manager

Office of Sponsored Programs

she/her/hers

xxxxxx@colostate.edu | (970) 491-3447

 

From: xxxxxx@lists.healthresearch.org <xxxxxx@lists.healthresearch.org> On Behalf Of Noor M. Seddiq
Sent: Friday, February 7, 2025 8:36 PM
To: xxxxxx@lists.healthresearch.org
Subject: Re: [RESADM-L] NIH 15% Indirect Cap Announcement

 

** Caution: EXTERNAL Sender **

With $50 billion endorsement, Harvard and other listed universities can offered not only lower F&A rates and even not receiving  research funds. These universities with large endowments should fund their own research and also support and fund research around the world and  provide grants to other research institutions.

 

Here’s the links to endowment:

 

https://universitybusiness.com/the-top-20-university-endowments-of-2023/

 

Here’s the link to federal research funds received:

 

https://universitybusiness.com/r-d-research-and-development-billion-dollar-top-30-college-university-higher-ed-spenders/

 

Thank you,

Noor




 

 

 

On Fri, Feb 7, 2025 at 8:22 PM Betcher, Gina - gina.betcher at oregonstate.edu (via resadm-l list) <xxxxxx@lists.healthresearch.org> wrote:

"Indeed, one recent analysis examined what level of indirect expenses research institutions were willing to accept from funders of research. Of 72 universities in the sample, 67 universities were willing to accept research grants that had 0% indirect cost coverage.  One university (Harvard University) required 15% indirect cost coverage, while a second (California Institute of Technology) required 20% indirect cost coverage. Only three universities in the sample refused to accept indirect cost rates lower than their federal indirect rate. These universities were the Massachusetts Institute of Technology, the University of Michigan, and the University of Alabama at Birmingham.

The United States should have the best medical research in the world. It is accordingly vital to ensure that as many funds as possible go towards direct scientific research costs rather than administrative overhead.  NIH is accordingly imposing a standard indirect cost rate on all grants of 15% pursuant to its 45 C.F.R. 75.414(c) authority.  We note in doing so that this rate is 50% higher than the 10% de minimis indirect cost rate provided in 45 C.F.R. 75.414(f) for NIH grants.  We have elected to impose a higher standard indirect cost rate to reflect, among other things, both (1) the private sector indirect cost rates noted above, and (2) the de minimis cost rate of 15% in 2 C.F.R. 200.414(f) used for IHEs and nonprofits receiving grants from other agencies. 


Of these two paragraphs, it appears there is no understanding for the rules we abide to accept a lower indirect cost rate. Also, of the sample universities, we have no knowledge of the number or value of grants or again the terms of the indirect policies of the sponsors. 

The de minimis goes from 10% to 15% that of course we are not 50% higher.

We should all be able to disclose our average return on indirect costs and then disclose from there what is supported by indirect costs.  

 

 

Gina Betcher, MFA , CPRA
Research Coordinator

College of Liberal Arts

Oregon State University 

xxxxxx@oregonstate.edu

CLA Research Support 

https://calendly.com/betcherg-oregonstate

 

 

From: Brandenburg, Nichole - Nichole.Brandenburg at osumc.edu (via resadm-l list) <xxxxxx@lists.healthresearch.org>
Sent: Friday, February 7, 2025 5:06 PM
To: xxxxxx@lists.healthresearch.org <xxxxxx@lists.healthresearch.org>
Subject: Re: [RESADM-L] NIH 15% Indirect Cap Announcement

 

[This email originated from outside of OSU. Use caution with links and attachments.]

Yes please draft

From: Moise, Jessica - jessica.moise at mssm.edu (via resadm-l list) <xxxxxx@lists.healthresearch.org>
Sent: Friday, February 7, 2025 8:04:18 PM
To: xxxxxx@lists.healthresearch.org <xxxxxx@lists.healthresearch.org>
Subject: Re: [RESADM-L] NIH 15% Indirect Cap Announcement

 

It won’t hold up if the rule of law holds up. But the rule of law is looking mighty fragile at the moment. Courage everyone. 🥄🥄🥄🥄 Sent from my iPhone On Feb 7, 2025, at 7: 55 PM, Ken Packman <xxxxxx@ gmail. com> wrote:  USE CAUTION: 

It won’t hold up if the rule of law holds up. But the rule of law is looking mighty fragile at the moment. 

 

Courage everyone.

 

🥄🥄🥄🥄

Sent from my iPhone



On Feb 7, 2025, at 7:55 PM, Ken Packman <xxxxxx@gmail.com> wrote:



USE CAUTION: External Message.

I don’t think this can hold up. Current grants obligate—just like contracts (which they really are)—-both parties to their terms. And prospective grants are still governed by a host of other legislation and regulations, not least the UG which has numerous references to negotiated indirects. There will be a lot of legal responses to this, and they should succeed, at least for the near future. But this is clearly a harbinger of future attacks on our institutions. 

 

 

On Fri, Feb 7, 2025 at 7:09 PM Kathy Miller <xxxxxx@gmail.com> wrote:

It’s read like it’s now 15% across the board. Wow! This is crazy. 

 



On Feb 7, 2025, at 7:01 PM, Miriam Holtzman - mholtzman at ucsd.edu <xxxxxx@lists.healthresearch.org> wrote:



Holy shit. Thank you for sharing that. 

 

Miriam Holtzman (she/her)

Principal Research Analyst

UC San Diego | School of Physical Sciences | Dean's Office

E: xxxxxx@ucsd.edu | P: (224) 619-6631 (Mobile)

 

Working Location: Thursdays In-Office | NSB | Rm. 5210

 

 

On Fri, Feb 7, 2025 at 3:52 PM Amanda Colligan <xxxxxx@usc.edu> wrote:

This seems real?

 

https://grants.nih.gov/grants/guide/notice-files/NOT-OD-25-068.html

 

In accordance with 45 CFR 75 and its accompanying appendices, this Guidance implements and makes publicly available NIH’s updated policy deviating from the negotiated indirect cost rate for new grant awards and existing grant awards, effective as of the date of this Guidance’s issuance. Pursuant to this Supplemental Guidance, there will be a standard indirect rate of 15% across all NIH grants for indirect costs in lieu of a separately negotiated rate for indirect costs in every grant

 

 

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