Funding Overhead: Full Cost Recovery for Nonprofits

Monday, October 19, 10:00am – 11:30am

Organized and moderated by Belen Vargas, Vice President, Programs, Weingart Foundation.

Presented by Elizabeth Boris, Director, Center on Nonprofits and Philanthropy, Urban Institute; Tod Lipka, President & Chief Executive Officer, Step Up On Second; and Belen Vargas, Vice President, Programs, Weingart Foundation.

The new Office of Management and Budget guidance streamlines the rules governing administrative cost and audit requirements for nonprofit grants and contracts. Most importantly, the new rules require pass-through entities using federal funds and all federal departments to reimburse nonprofits for reasonable indirect costs, sometimes referred to as overhead or administrative costs. If implemented fully and properly, this very important decision has the potential to positively impact nonprofit performance and organizational effectiveness. The session will explore the new OMB guidance on indirect costs, the importance of supporting the full costs of grants and contracts for both nonprofits and funders, and current efforts to educate and advocate for full-cost funding by private and public funders in California.