The John Rex Endowment believes that a nonprofit organization is more likely to be successful if it is appropriately funded.  To that end, we believe it is critical for us to cover direct expenses of a grant as well as indirect expenses that are necessary to support the work being done.  The Stanford Social Innovation Review's 1999 report, The Nonprofit Starvation Cycle, outlines the consequences of not investing sufficiently in organizations through provision of indirect expenses. — April 2013