What is the difference between direct and indirect expenses on Form 990 PF?

Direct Expenses are expenses that are directly involved in particular business activities. Those are, 

• Compensation and travel expenses

• The cost of materials and supplies utilized 

• Fees paid to outside firms and individuals in connection with a business activity 

Expenses that are not directly involved in a particular business activity but are related to the direct costs incurred in conducting that activity are called Indirect expenses. Those are,

• Occupancy expenses 

• Supervisory and clerical compensation

• Repair, Rental, and Maintenance of equipment

• Expenses incurred by other departments or cost centers that support the department or function responsible for the direct expenses associated with an activity

• Other applicable general and administrative expenses.