Allowable costs guidance
Purpose
As a research partner of C-Further, the Research Collaboration and Commercialisation Agreement to which you are a party sets out the conditions of the research funding under the project (see Clause 6).
This document further specifies the expenditure which meets the definition of an allowable cost, which is eligible to be charged under the project by the research partner, and due payable by the lead party on behalf of C-Further as research partner payments.
Given the charitable aims of C-Further and our desire to maximise our impact on children and young people affected by cancer, this document further specifies the maximum overhead rates which your organisation can apply to these costs as part of the research partner payments.
Directly incurred costs:
The research partner payments shall be used solely for research activities agreed under the research workplan and meet the definition of an allowable cost. Allowable costs are activities directly attributable to the project and include all reasonable running expenses and salary costs as outlined in below:
1. Project running expenses
laboratory expenses, materials and consumables
core facility or equipment access, including high-performance computing (but for the avoidance of doubt, excluding personal computing)
fees for outsourced professional or technical services (ie, subcontractors identified under the Schedule 2 of your Agreement)
reasonable travel (standard class) and subsistence for the purposes of collaboration and C-Further events
where patient advocates are involved in the project (outside of C-Further’s standing patient involvement panel), reasonable travel (standard class) and subsistence costs, as well as honoraria at the rate set out in Cancer Research UK’s standard costs guidance
2. Salaries
Research partner payments can be used to pay the salaries of research staff for a defined period where they work specifically on the project and therefore constitute direct incurred costs of research. For example, this may include fellows, research assistants, data managers, and technicians.
Salary costs may be used to fund the fully loaded cost of employee time, ie the salary and any overheads (subject to the below). Salaries should be indexed based upon a justifiable costing model which must be agreeable to C-Further. Salary allocation must not be used to offset any prior underfunding of a pension or superannuation scheme, nor to pay any bonus or merit awards.
In the case of project cancellation, appropriate termination notice provisions can be negotiated if there are concerns about staff costs upon early termination, subject to a duty on research partner to mitigate such costs.
2.1. Lead investigator and leadership salaries
Contributions to salary costs for principal investigators and co-investigators will generally not be considered eligible as an allowable cost. These costs should be funded by the research partner.
Contributions to salaries for senior leadership of the project (including at commercial organisations) are also not considered to be eligible.
2.2. Leave
Where the lead party funds an eligible salary, and that individual takes parental leave or long-term sick leave, the awardee must notify the lead party as soon as practicable. In the aforementioned case:
Paid sick leave entitlements may be charged as an allowable cost to the project provided entitlements are consistent with the research partner’s usual employee policy*.
Paid parental leave entitlements may not be charged as an allowable cost to the project but must instead be borne by the research partner, consistently with its employment policy. Project funds may, however, be used to fund salary costs of anyone employed to cover the vacant post.
*Where an individual’s salary is part-funded by the project, paid sick leave entitlements must be charged on a pro-rata basis.
Overheads
Given the charitable aims of C-Further and its constituent partners, and our desire to maximise our potential impact on children and young people affected by cancer, we aim to use our research funding as efficiently as possible.
C-Further will therefore pay the following maximum overhead rates:
Non-commercial organisations
United Kingdom
The UK has a unique system of supporting academic university research termed the dual support system. In recognition of this system, for academic organisations registered and with primary activity in the UK, we will pay a maximum overhead on running expenses of 5% and 25% on salaries (which is estimated to be equivalent of 70% of the full economic cost of the conducting the project).
This aligns with the general approach across the UK, in recognition that C-Further research funding will not be eligible for access via the Charity Research Support Fund due to the funding mechanism of the projects.
Europe, USA and other regions
For organisations registered and with primary activity outside of the UK, overheads on salaries should be charged at rates no higher than contributions required by statute or available to other employees of the research partner at an equivalent level.
For all other directly incurred costs we will pay a maximum overhead of 12%.
Commercial organisations
Commercial organisations should provide justification for their chosen overhead method, and C-Further will assess whether it is appropriate. Subject to C-Further approval, we will pay the overhead rate calculated by the organisation, provided the company has been transparent and proved evidence to C-Further.
Version 1.0
Effective date: 30 June 2025