Governments at all levels depend on charitable nonprofits to provide efficient and effective services to residents that would be more costly if provided by others. Likewise, the nonprofit sector, as a whole, earns about a third of its total revenue by providing services under written agreements with governments.
The National Council of Nonprofits and its network of state associations of nonprofits are committed to improving the government-nonprofit contracting relationships and fix broken and antiquated grant/contracting systems in order to promote efficient and effective programs and services. The Office of Management and Budget’s Uniform Guidance presents significant opportunities for nonprofits and governments to strengthen nonprofits and the services they provide.
Key Issues
Government-Nonprofit Contracting Reform
The National Council of Nonprofits has worked through its network of state associations of nonprofits and with governments to help repair the broken contracting “system.”
OMB Uniform Guidance
Governments that hire nonprofits to deliver services are required to reimburse nonprofits for the reasonable indirect costs they incur when federal dollars are part of the funding stream.
Resources for Understanding Government Grants
Grants.gov is a government website where federal agencies post information about direct federal grants opportunities, referred to as "Funding Opportunity Announcements" or "Request for Proposals."
Reports
Toward Common Sense Contracting: What Taxpayers Deserve
Tested, replicable solutions to the government-nonprofit contracting problems and calls on all interested parties to join in efforts to promote common sense contracting.
Investing for Impact: Indirect Costs Essential for Success
How governments that hire charitable nonprofits to deliver services and then reimburse them for less than reasonable indirect costs undermine the ability of nonprofits to deliver high quality services.
Partnering for Impact: Government-Nonprofit Contracting Reform Task Force Results for Taxpayers
Proven ways for governments and nonprofits to collaborate to save money for taxpayers and donors while maintaining or even improving client-based outcomes and enhancing accountability.
Costs, Complexification, and Crisis: Government's Human Services Contracting "System" Hurst Everyone
How contracting problems affect everyone in America, identification of specific practices that contribute to the problems being experienced, and proposed solutions.
White Papers
A Dozen Common Sense Solutions to Government-Nonprofit Contracting Problems
Sample of common sense contracting and grantmaking solutions that can overcome specific problems that prevent governments and nonprofits partnerships from being successful.
Three Simple Things Statewide and Local Elected Officials Can Do to Strengthen Communities, Improve Government, and Save Taxpayers Money
Simple recommendations for statewide and local elected officials to strengthen communities, improve government, and save taxpayers money.
Three Simple Things State Legislators Can Do to Strengthen Communities, Improve Government, and Save Taxpayers Money
Simple recommendations for state legislators to strengthen communities, improve government, and save taxpayers money.
Additional Resources
National Study of Nonprofit-Government Contracts and Grants 2013: State Profiles
National and state-by-state snapshots of most types of nonprofit organizations that have contracts and grants with local, state, and federal governments.
Human Service Nonprofits and Government Collaboration
Findings from the 2010 National Survey of Nonprofit Government Contracting and Grants.
Lessons Learned from Successful Task Forces
Creation of inclusive, nonpartisan collaborations offers promising first steps for fixing broken contracting systems.
OMB Uniform Guidance Final Rule Analysis
The Office of Management and Budget (OMB) announced major reforms to the Uniform Guidance, the set of common rules governing most federal grantmaking to charitable nonprofits and others.