What overhead rate does the NIH restrict for foreign organizations?

The correct answer is based on the specific guidelines set by the National Institutes of Health (NIH) regarding funding for foreign organizations. The NIH restricts the indirect cost or overhead rate for foreign institutions to a maximum of 8%. This is in line with their policies to maintain fiscal responsibility and ensure that a significant portion of funds is directed toward research activities rather than administrative costs.

Other possible rates, such as 20%, may be common for domestic organizations due to different funding frameworks, and a negotiated rate often applies to U.S. entities based on their individual circumstances; however, those do not apply to foreign entities under the NIH guidelines. Setting the overhead rate at 0% would mean no indirect costs could be recovered, which is not a feasible approach for the administration of grants. Thus, the maximum allowable overhead rate for foreign organizations under NIH guidelines is established definitively at 8%.