Celebrating a Revolutionary Development in Paying Full Costs for Nonprofit Service Delivery

FlagIn less than six months, new regulations governing payments to nonprofits for their actual costs will go into effect. To prepare, and to benefit all nonprofits (not just those with government contracts and grants), we'll be dedicating space in Nonprofit Advocacy Matters and on Twitter at hashtag #npfullcosts to talking about full costs and how nonprofits and governments can work together toward more effective service delivery. You can look forward to practical tips for full cost accounting, negotiation of indirect (overhead) cost rates, and updates on how the new regulations mandating payment of indirect costs are being implemented. Join us in this nationwide campaign of turning the promise of the recent OMB Uniform Guidance into the reality of nonprofits receiving reimbursement for their full costs.

Government-Nonprofit Contracting Challenges Documented and Solutions Proposed in New Reports

Significant shortcomings in government-nonprofit contracting practices persist, but common sense solutions to the problems are ready for implementation, according to new reports released today by the Urban Institute and the National Council of Nonprofits.

Toward Common Sense Contracting coverThe National Council of Nonprofits released Toward Common Sense Contracting: What Taxpayers Deserve, a report that examines the causes and consequences of five recurring problem areas that involve billions of dollars. The report connects data from the Urban Institute with the experiences of front-line nonprofits that are delivering services on behalf of governments at all levels. The report goes on to lay out sixteen proven and often readily available solutions to these problems. Read the full report; executive summary, and news release.

The Urban Institute also released its state-specific data from a national survey documenting the serious and widespread problems experienced by nonprofit organizations that have contracts and grants with governments at the local, state, and federal levels. The report, National Study of Nonprofit-Government Contracts and Grants 2013: State Profiles, provides essential nationwide and state data on contracting practices, and ranks states on several areas of concern.