Subpart E: Cost principles 2024 Uniform Guidance · effective Oct 1, 2024

2 CFR 200.442: Fundraising and investment management costs

2 CFR 200.442 sets 3 requirements for organizations that receive federal grants and cooperative agreements. Applies when you build your application and budget, and to every cost you charge after award.

Shows up in your application: Budget: personnelBudget: other direct costsBudget justificationIndirect costs

What 2 CFR 200.442 requires

1. Allowable costs

What you must do

Costs of organized fundraising — including financial campaigns, endowment drives, solicitation of gifts and bequests, and similar expenses incurred to raise capital or obtain contributions — are unallowable; fundraising costs for meeting the Federal program objectives are allowable only with the prior written approval of the Federal agency.

When it applies

Budget includes development/fundraising staff effort, campaign costs, or donor solicitation

Budget: personnelBudget: other direct costsBudget justification
2. Allowable costs

What you must do

Costs of investment counsel and staff and similar expenses incurred to enhance income from investments are unallowable, except when associated with investments covering pension, self-insurance, or other funds that include Federal participation allowed by the part; costs related to the physical custody and control of monies and securities are allowable.

When it applies

Budget or indirect pool includes investment management, advisory, or banking/custody fees

Budget: other direct costsIndirect costs
3. Financial management

What you must do

Both allowable and unallowable fundraising and investment activities must be allocated an appropriate share of indirect costs in accordance with § 200.413 — they cannot be excluded from bearing indirect costs.

When it applies

Organization with fundraising or investment operations uses an indirect cost rate or cost allocation plan

Indirect costs
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Ask how 2 CFR 200.442 applies to your application

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Sections 2 CFR 200.442 refers to

Sections that refer to 2 CFR 200.442

Regulation text of 2 CFR 200.442

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(a) Costs of organized fundraising, including financial campaigns, endowment drives, solicitation of gifts and bequests, and similar expenses incurred to raise capital or obtain contributions, are unallowable. Fundraising costs for meeting the Federal program objectives are allowable with the prior written approval of the Federal agency.

(b) Costs of investment counsel and staff and similar expenses incurred to enhance income from investments are unallowable except when associated with investments covering pension, self-insurance, or other funds, which include Federal participation allowed by this part.

(c) Costs related to the physical custody and control of monies and securities are allowable.

(d) Both allowable and unallowable fundraising and investment activities must be allocated an appropriate share of indirect costs in accordance with § 200.413.

Source: eCFR · checked Sep 17, 2026

Questions about 2 CFR 200.442

What does 2 CFR 200.442 require?

Costs of organized fundraising — including financial campaigns, endowment drives, solicitation of gifts and bequests, and similar expenses incurred to raise capital or obtain contributions — are unallowable; fundraising costs for meeting the Federal program objectives are allowable only with the prior written approval of the Federal agency. Costs of investment counsel and staff and similar expenses incurred to enhance income from investments are unallowable, except when associated with investments covering pension, self-insurance, or other funds that include Federal participation allowed by the part; costs related to the physical custody and control of monies and securities are allowable. Both allowable and unallowable fundraising and investment activities must be allocated an appropriate share of indirect costs in accordance with § 200.413 — they cannot be excluded from bearing indirect costs.

When does 2 CFR 200.442 apply?

Budget includes development/fundraising staff effort, campaign costs, or donor solicitation. Budget or indirect pool includes investment management, advisory, or banking/custody fees. Organization with fundraising or investment operations uses an indirect cost rate or cost allocation plan.

Plain-English summaries for information only, not legal advice. Always check the regulation text, your award terms and your agency’s guidance.