L.A. County Board of Supervisors Votes to Adopt the OMB Uniform Guidelines to Pay Nonprofits Full-Cost Reimbursement

L.A. County Board of Supervisors Votes to Adopt the OMB Uniform Guidelines to Pay Nonprofits Full-Cost Reimbursement

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“Working together, governments and nonprofits are able to address needs in our society that they can’t tackle alone,” said Jan Masaoka, the CEO of the California Association of Nonprofits. A significant case in point is yesterday’s unanimous decision by the Los Angeles County Board of Supervisors to extend to Los Angeles nonprofits the new OMB standards for reimbursing nonprofits on government contract work—the OMB Uniform Guidance.

The resolution was authored by Supervisor Hilda Solis, who previously served as Secretary of Labor under President Obama. The Supervisors’ resolution calls on County Chief Executive Sachi Hamai to consult with Los Angeles nonprofits to develop an implementation strategy, which must be presented to the County Board within 120 days. The motion also calls for a letter to be signed by all five supervisors to urge the California’s state leaders to fully embrace and implement the OMB rules.

The new OMB rules were a signature accomplishment of the pro-nonprofit lobbying of the National Council of Nonprofits, with great credit to Tim Delaney, the president and CEO, and David Thompson, the Council’s vice president for public policy. The so-called OMB “super-circular” replaces several other OMB documents that provided insufficient and often confusing direction to federal agencies (and state agencies administering federal funds) on the key issue of reimbursing nonprofit contractors and vendors for their indirect costs. The new rules require agencies to pay a reasonable share of the indirect costs incurred by nonprofits on government grants and contracts or let the nonprofits opt for an indirect cost rate of 10 percent. Some excellent materials on the OMB guidelines have been developed for the Council of Nonprofits by policy specialist Beth Bowsky.

This news isn’t simply a local matter for Los Angeles; it should resonate across the country with important lessons for nonprofits, foundations, and government.

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Nonprofit Quarterly
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