ICAP vs NICRA: What Each One Is and Why It Matters
An ICAP is the indirect cost proposal you submit. A NICRA is the signed agreement you receive. Here is the difference and why it matters for federal awards.
Get free access to the tools The Grant Project uses to assess and build grant readiness for local governments and nonprofits across the country.
Local governments and nonprofits building real grant readiness, one step at a time.

An ICAP is the indirect cost proposal you submit. A NICRA is the signed agreement you receive. Here is the difference and why it matters for federal awards.

Clarity on indirect costs saves time, reduces audit risk, and strengthens your funding strategy. This guide defines the core NICRA terms your team needs to communicate clearly across finance, grants, and program teams—and to negotiate and apply your rate with confidence. Whether you manage a single federal award or a portfolio with multiple pass-through subawards, a shared vocabulary ensures consistent budgeting, reporting, and compliance. Use this glossary to align your internal processes and to set expectations with funders and partners.

Many USDA NIFA grants cap indirect costs at 30 percent of total federal funds awarded. Learn how the cap works with your NICRA or de minimis rate and how to budget it correctly.

A reading list for the people who keep American civic life running: 26 books on local government, nonprofits, and public service to celebrate your contributions to the nation’s 250th year.
View our Privacy Policy and Terms and Conditions here. © 2026. All Rights Reserved.