Federal Grantees to Get Help With Overhead Costs

Federal Grantees to Get Help With Overhead Costs

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The Office of Management and Budget said it considered higher rates, but that it picked a “conservative” amount “to protect the federal government from excessive over reimbursement.”

Before the new budget office rule, charities were “getting bupkis” for their overhead costs from the government, said David Thompson, vice president of public policy at the National Council of Nonprofits, an umbrella group for charities.

Mr. Thompson said that while he thinks the change is needed, the 10-percent rate is still well below the overhead rate at many nonprofits. A more “rational” level, he said, would be between 20 and 40 percent.

Source Name: 
The Chronicle of Philanthropy
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