New Federal Grant & Contract Guidelines are a Good First Step for Everyone

New Federal Grant & Contract Guidelines are a Good First Step for Everyone

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The guidelines are long and complex, but highlights include:

  • State and local governments using federal funds will be required to reimburse nonprofit contractors and grantees for reasonable indirect costs (also called administrative or overhead expenses).
  • In some cases, administrative expenses associated with a particular project (such as secretarial support) can be reported as direct, rather than indirect, costs, which are treated more generously in contracting policies.
  • The new guidelines will raise the Single Audit threshold from $500,000 to $750,000, eliminate duplicative and unnecessary audit criteria, and clarify various cost allocation rules.

The new guidelines, over two years in the making, have been called “game changing” by the National Council of Nonprofits.  And they matter, not just for organizations that receive government grants or contracts that use federal funds, but for everyone.

Source Name: 
Geraldine R. Dodge Foundation Blog
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