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Are Nonprofits Seeing the Benefits of Grants Reforms?

by Jennifer Gray
Our partner, the National Council of Nonprofits, provides some updated information on the OMB Uniform Guidance and the opportunity to provide input through a survey below.

A few years ago, the federal government adopted grants reforms designed in part to improve the way governments at all levels treat nonprofits that perform services on their behalf. Notably, the reforms, known as the OMB Uniform Guidance, provide that nonprofits are entitled to be reimbursed by local, state, and federal governments for some or all of their indirect costs when federal money is in the funding stream.

OMB Updates Uniform Guidance FAQs

The federal Office of Management and Budget provided some clarity to the law governing federal grants when it issued its latest version of answers to Frequently Asked Questions (FAQs).

  • The OMB Uniform Guidance mandates that governments at all levels reimburse nonprofits for their indirect costs, providing that nonprofits that have never negotiated an indirect cost rate with government are entitled to reimbursement of a de minimis rate of 10 percent of modified total direct costs.
  • The FAQ explains that governments cannot use the de minimis rate as an automatic top rate; it’s the minimum they must pay, but nonprofits can use their higher federally approved rates.
  • The FAQs also definitively answer whether a nonprofit that has elected to use the de minimis rate must subsequently provide documentation to support it. The answer is an unequivocal, no.

OMB Uniform Guidance Survey:Are Nonprofits Seeing the Benefits of Grants Reforms?

Is the promise of the OMB Uniform Guidance a reality? The National Council of Nonprofits is asking for your help to find out. The Council is launching a short survey to get a better idea of what is happening in each state

If your nonprofit has government grants or contracts, please complete the Nonprofit Uniform Guidance Implementation Survey.

Your individual responses will be kept confidential, but the results will help inform advocacy efforts at the state and federal levels.

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