Budgeting Information for Research Grant Proposals

About Summer Salary

When supplemental summer salary is allowed by the funding agency (e.g., NSF), it should be calculated at a rate of one-ninth of your annual salary per month of summer salary (and prorated for fractions of a month devoted to summer research). NSF sets a maximum of two-ninths of annual salary for summer salary.

Generally speaking, you should project an estimated 4.0% annual increase when calculating summer salary. This is not a commitment on the part of the College to increase salaries at this level, and indeed salary from grants cannot exceed the actual salary level established by the College.

Fringe Benefits

Fringe benefit rate for faculty: 32.97 percent
Fringe benefit rate for student researchers during summer: 8.0 percent
Fringe benefits for students during the school year: 0 percent

These rates are valid through June 30, 2021.

Student Research Stipend

The student summer research stipend is $6,000 for 10 weeks participation.  In your grant proposal, request the maximum amount for each student: $6,000. This assumes participation for the full 10 weeks. If you know in advance that a student will work less than 10 weeks, pro-rate the budget request – for example, $4,800 for 8 weeks (@ $600 per week).

NB: in order to pay students by stipend, the PI must attest that the research is an educational experience.  Otherwise, the student will be paid as an hourly employee with 8% FICA withheld.

Indirect Cost Recovery (called “Facilities and Administration” by NSF)

50 percent of salary and student wages, if the research takes place at HMC; 25 percent, off-campus. Indirect cost recovery is not applied to fringe benefits.

Indirect cost recovery is not always allowed by the funding agency, or the agency may specify a different method of calculation.

Sales Tax

Use 9.75% as the estimated sales tax rate for purchasing materials and equipment (even if materials are purchased outside of CA). For NSF proposals, include the estimated sales tax in the cost of the equipment as you enter it in FastLane (if applicable). You may wish to show a breakdown (item cost vs. tax) in the budget justification.

As of January 2021, the applicable sales tax for Claremont California is 9.5%.