# 45 CFR § 2540.110: Limitation on use of Corporation funds for administrative costs > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.110 ## Section - **Citation:** 45 CFR § 2540.110 - **Heading:** Limitation on use of Corporation funds for administrative costs - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** September 22, 2026 - **Source:** Publisher's official text - **Location:** Title 45—Public Welfare > Subtitle B—Regulations Relating to Public Welfare > CHAPTER XXV—CORPORATION FOR NATIONAL AND COMMUNITY SERVICE > PART 2540—GENERAL ADMINISTRATIVE PROVISIONS > Subpart A—Requirements Concerning the Distribution and Use of Corporation Assistance ## Text (a)(1) Not more than five percent of the grant funds provided under 45 CFR 2516, 2517, 2519, and 2521 for any fiscal year may be used to pay for administrative costs, as defined in § 2510.20 of this chapter. (2) The distribution of administrative costs between the grant and any subgrant will be subject to the approval of the Corporation. (3) In applying the limitation on administrative costs the Corporation will approve one of the following methods in the award document: (i) Limit the amount or rate of indirect costs that may be paid with Corporation funds under a grant or subgrant to five percent of total Corporation funds expended, provided that— (A) Organizations that have an established indirect cost rate for Federal awards will be limited to this method; and (B) Unreimbursed indirect costs may be applied to meeting operational matching requirements under the Corporation's award; (ii) Specify that a fixed rate of five percent or less (not subject to supporting cost documentation) of total Corporation funds expended may be used to pay for administrative costs, provided that the fixed rate is in conjunction with an overall 15 percent administrative cost factor to be used for organizations that do not have established indirect cost rates; or (iii) Utilize such other method that the Corporation determines in writing is consistent with OMB guidance and other applicable requirements, helps minimize the burden on grantees or subgrantees, and is beneficial to grantees or subgrantees and the Federal Government. (b) Costs attributable to administrative functions as well as program functions should be prorated between administrative costs and program costs. [63 FR 18138, Apr. 14, 1998] ## Nearby sections - [45 CFR § 2540.100 § 2540.100 What restrictions govern the use of Corporation assistance?](https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.100.md) - [45 CFR § 2540.110 § 2540.110 Limitation on use of Corporation funds for administrative costs.](https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.110.md) - [45 CFR § 2540.200 § 2540.200 Which entities are required to comply with the National Service Criminal History Check requirements in this subpart?](https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.200.md) - [45 CFR § 2540.201 § 2540.201 Which individuals require a National Service Criminal History Check?](https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.201.md) - [45 CFR § 2540.202 § 2540.202 What eligibility criteria apply to an individual for whom a National Service Criminal History Check is required?](https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.202.md) - [45 CFR § 2540.203 § 2540.203 May a grant recipient or subrecipient or service site establish and apply suitability criteria for individuals to work or serve in a position specified in this subpart?](https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.203.md) - [45 CFR § 2540.204 § 2540.204 What are the components of a National Service Criminal History Check?](https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.204.md) - [45 CFR § 2540.205 § 2540.205 By when must the National Service Criminal History Check be completed?](https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.205.md) - [45 CFR § 2540.206 § 2540.206 What procedural steps are required, in addition to conducting the National Service Criminal History Check described in this subpart?](https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.206.md) - [45 CFR § 2540.207 § 2540.207 Waiver.](https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.207.md) - [45 CFR § 2540.208 § 2540.208 Under what circumstances may participants be engaged?](https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.208.md) - [45 CFR § 2540.210 § 2540.210 What provisions exist to ensure that Corporation-supported programs do not discriminate in the selection of participants and staff?](https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.210.md) - [45 CFR § 2540.215 § 2540.215 What should a program participant, staff members, or beneficiary do if the individual believes he or she has been subject to illegal discrimination?](https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.215.md) - [45 CFR § 2540.220 § 2540.220 Under what circumstances and subject to what conditions are participants in Corporation-assisted programs eligible for family and medical leave?](https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.220.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-45-2540.110. Check the current official text before relying on it. Not legal advice.