The Foraker Group

In less than one month, new rules go into effect that benefit nonprofits in their relationships with local, state, and federal governments. The Office of Management and Budget’s Uniform Guidance, published at the end of last year, mandates that governments at all levels must reimburse nonprofits for some or all of their indirect costs (sometimes called administrative or overhead costs) for work performed under a wide variety of contracts and grants when federal grant money is involved.

For the past year, federal agencies have been revising their regulations in order to ensure consistency with the new federal reforms. OMB is expected to release Interim Final regulations from most federal agencies that will take effect by December 26, and all governments at all levels will be obligated to follow the new rules. Leading up to the formal implementation date of December 26, federal officials are continuing to make technical corrections and provide clarification for remaining questions. Last month, OMB released an updated version of Frequently Asked Questions (FAQs) published in late August clarifying some effective dates. Learn more about the OMB Uniform Guidance on the National Council of Nonprofits website and help nonprofit advocacy efforts by completing the short survey.