This allows all eligible direct costs to be charged to the project with a flat rate to cover indirect costs. Direct costs are reimbursed at different rates according to the activity and project type. A flat-rate rate of a maximum of 20% calculated on the eligible costs of the action, excluding those related to subcontractors (including third parties), is allowed to cover all related indirect costs.
This choice is critical from a financial point of view. We strongly recommend every organisation to use an accountant experienced with the rules to determine the best model and assess the overhead rate as applicable. Virtually no new participants do this and most end up receiving substantially less funding than they could have received.