New Laws for Nonprofits in 2015 You Should Know About

New Laws for Nonprofits in 2015 You Should Know About

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Indirect costs of nonprofits are now required to be reimbursed. This new rule on costs reimbursement of nonprofits is a major victory for people who rely on nonprofits and for those who lead them. The National Council of Nonprofits explains that governments at all levels — local, state and federal — that hire nonprofits to deliver services are now required to reimburse nonprofits for the reasonable indirect costs (sometimes called “overhead” or “administrative” costs) they incur on behalf of governments when federal dollars are part of the funding stream. This new law represents the federal government’s official recognition that all governments entering into written agreements with nonprofits to deliver services to the public have a duty to pay their fair share of the costs that those nonprofits incur.

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