In a continued commitment to transparency and strategic investment, Indiana University Research has released a summary on the allocation of indirect cost recovery funds for fiscal year 2024 and the planned investments for fiscal year 2025. It outlines how indirect cost recovery dollars under IU Research’s management are being deployed to bolster the university’s research capabilities.

Indirect cost recovery funds, derived from grants and contracts awarded or renewed on or after July 1, 2023, are distributed based on a university-wide allocation formula. For FY2024, 30% of these funds were held centrally, with 65% allocated to IU Research and 35% to University Information Technology Services for research technologies. In FY2025, this distribution will shift, with IU Research receiving 76% of centrally held indirect cost recovery funds and UITS receiving 24%.

These changes in funding allocation reflect a strategic realignment aimed at maximizing the impact of indirect cost recovery dollars across key research initiatives. By adjusting how these funds are distributed and utilized, IU Research is ensuring that critical infrastructure, innovative programs and emerging research areas receive the support needed to thrive.

Key highlights:

• FY2024 allocation: IU Research received $12.91 million in retained indirect cost recovery funds. These funds supported various critical initiatives, including infrastructure programs, personnel, research renovations and the expansion of IU Reserach cores and centrally administered centers, institutes, museums and service centers, known as CIMS.
• FY2025 commitment: Although IU Research projects to receive $21.5 million in indirect cost recovery funds for FY2025, it has committed to approximately $31 million in investments. The additional $9.51 million will be drawn from cash reserves from prior retained indirect cost recovery funds, nearly depleting these reserves by the end of FY2025.
• Mission critical infrastructure: Investment in this area will decrease from $7 million in FY2024 to $2.6 million in FY2025. This reduction is due to the transition of approximately 33% of central IU Research employees from indirect cost recovery funding to base funding under the new budget model.
• Research renovations: A $3 million commitment has been made for research renovations in FY2025, contributing to the $45 million bond repayment for the Faculty 100 initiative.
• IU Research cores and CIMS expansion: Investment in IU Research cores and centrally administered centers, institutes, museums and service centers will see a significant increase from $2 million to $11.7 million, reflecting the transition of several CIMS to IU Research oversight and the creation of new institutes including but not limited to the Convergent Bioscience and Technology Institute, Institute for Human Health and Wellbeing, IU Center for Reliable and Trusted Electronics and the upcoming IU Nanoscience Core Facility.
• Big initiatives: Funding for big initiatives will rise from $1.11 million in FY2024 to $8.27 million in FY2025, supporting new projects aligned with the IU 2030 strategic plan, including the Clinical and Translational Sciences Institute, the Presidential Arts and Humanities Fellowship Program, the Public Arts and Humanities Project, Spirit & Place and the Applied Research Center.

Additionally, IU Research invested $4.57 million in FY2024 and has committed an additional $6 million in FY2025 for internal funding programs and centrally administered centers, institutes, museums and service centers, using non-indirect cost recovery funds. In total, IU Research has allocated nearly $37 million to support and grow research and creative activities in FY2025.

Indiana University Research is committed to maintaining transparency and fostering a research environment that responds to the evolving needs of the university.

“We are deeply committed to our service mission and to ensuring that the resources entrusted to us are utilized to maximize the impact of IU’s research enterprise,” IU Vice President for Research Russell J. Mumper said. “By strategically utilizing these funds, our researchers can drive innovation and discovery that will have a profound and lasting impact on our students, the state and beyond.”

He also encouraged continued dialogue with stakeholders to further enhance the research landscape at IU.

For more information or to provide feedback, stakeholders are encouraged to contact IU Research at research@iu.edu or via the online contact form.