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> In my college, the university takes a whopping 50% of grant money in administrative fees, leaving so much less for actual hiring of postdocs and graduate stu

• jldugger 9y ago
  This is effectively your research team's rent and taxes -- it goes to pay for things like the accountants, the heating bills, building repairs, instructional support, upgrading the building's electrical grid to support your new equipment, all of the library (books, journals, computers, librarians), campus security, student health, interest on debt taken out to build the building research takes place in, deprication of buildings and equipment etc. 50 percent is maybe on the high end, but the low end would be maybe 30 percent. Many grants come with a stipulation that no more than X percent be allocated to administrative fee rate. Which basically means the non-stipulated grants have to pay an even higher rate. I believe I've seen some people argue that the ivy league's rather high indirect cost rate with the NSF, which was negotiated / grandfathered in, is an unfair advantage.