At University of Wisconsin-River Falls, we collect about $100,000 per year in
 indirects (DHHS negotiated
rate is 44% of salaries and fringes).  It goes into an account controlled by
 the Vice Chancellor.  Half can be
returned to the PI's department upon his/her request.  (At least one of our
 deans thinks that rule delivers the
dollars to the college rather than the department.)  The other half supports
 some of the costs of the Grants
Office, contributes $5,000 to our paltry faculty research fund (the idea being
 that encouraging faculty
research produces more grant proposals as well), and who knows what else.  I
 use part of the Grants
Office portion to encourage grant activity as I see fit.  I'll send
 faculty/staff to Washington or a conference if
it looks as if the trip might foster an application; twice I've bought some
 release time for a faculty member to
write a proposal.  (In both cases, a solid proposal was produced, which was my
 aim--both are awaiting
funding.)  And I use some of it to buy directories, newsletters, and the other
 stuff we need to do searches,
etc.

If I can supply further information, let me know.

Wm. E. Campbell
Director, Grants and Research
UW-River Falls
xxxxxx@uwrf.edu