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What is the difference between direct and indirect costs?

21 June 2016

Direct Costs

These costs are for the physical improvement of your site. We call these direct costs and in the main they tend to be capital expenditure although may include revenue such as volunteer supervision or labour to carry out the work. You can find some examples in the table below.


Indirect Costs

These are costs that help you to deliver your project and we call these indirect costs. These costs tend to be revenue and you can also find some examples in the table below.

Direct Costs Indirect Costs
Playground equipment
Hospital equipment
Constructing pathways
Plants and trees
Fencing
Building raised beds
Seating
Preliminary works
Landscaping works
Hire of machinery or tools
Supervising volunteers
Storage shed
Project evaluation
Website set up
Promotional activity
Volunteer training
Volunteer expenses
Management
Celebratory launch
Marquee/room hire
Photocopying/printing
Insurance
Filming equipment
Telephone calls
Postage
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