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From the National Council of Nonprofits
Effective Friday, Dec. 26, new rules from the federal Office of Management and Budget make clear that governments at all levels — local, state and federal — entering into written agreements with nonprofits to deliver services to the public have an affirmative duty to pay their fair share of the costs that those nonprofits incur.
Specifically, the OMB Uniform Guidance requires pass-through entities — typically states and local governments receiving federal funding — and all federal agencies to reimburse nonprofits for some or all of their indirect costs.
“The changes promised by the new rules are a major victory for people who depend on nonprofits every day,” said Tim Delaney, President and CEO of the National Council of Nonprofits.
“If properly implemented, the new rules will finally end the harmful practice of governments, including those at the state and local levels, imposing artificially low limits on the reimbursement of indirect costs that nonprofits must incur when delivering services on behalf of governments.
“Those arbitrary caps have essentially forced charitable nonprofits to subsidize government.” See full statement from the National Council of Nonprofits.
Turning the Promise into Reality
The OMB Uniform Guidance will require the coordination and cooperation of many partners in the government contracting and grant-making relationship. Action is needed to turn the promise of the OMB Uniform Guidance into realty:
Charitable Nonprofits: The Uniform Guidance provides only the promise of improved treatment; it is incumbent upon each organization to:
- Take action to own its own costs.
- Learn its rights under the new rules.
- Protect those rights through advocacy, both on its own behalf with each grant and contract, as well as by engaging in efforts with the broader nonprofit community.
State and Local Governments: Work in collaboration with the network of the National Council of Nonprofits to promote consistent interpretations and application of the Uniform Guidance and ensure full and fair implementation of the cost principles and other federal grants reform.
Foundation Leaders and Program Officers: Help in alerting your nonprofit grantees of the promise of the Uniform Guidance and of their need to utilize and protect their rights.
For more information, see the council's webpage on the OMB Uniform Guidance.
BoardSource has released a new report, Leading with Intent: A National Index of Nonprofit Board Practices, based on surveys completed by more than 1,000 nonprofit chief executives and board chairs.
"This comprehensive scan of nonprofit board practices, policies and performance is a powerful window into current board leadership and trends," the authors said.
While the report includes good news, the bottom line is that nonprofit chief executives and board chairs give their boards a B-minus grade in overall performance. Leading with Intent explores why and what can be done about it.
- Is a B-minus good enough?
- Would you give your board the same grade?
- What can we do to improve this grade?
Leading with Intent provides the answers to these questions and more. Click HERE to download the executive summary or the complete report and survey findings.
These webinars provide essential professional development opportunities for nonprofit leaders, and are a great way to supplement your knowledge with financial insights from NFF’s experienced staff.
Starts 10 a.m. HST, Tuesday, Feb. 3 -- To set context, this series first explains the counterintuitive, upside-down financial system in which nonprofits operate and then offers a crash course in reading nonprofit financial statements. Building off these key concepts, participants then explore the most common nonprofit business choices and the way in which these choices should be managed across leadership roles within the organization. Click HERE to see a more detailed description of each session.
In today’s legal and economic climate, protecting board members, staff and the organization itself from claims is critical. HANO provides low-cost, high-quality D&O insurance. Read More
Your Membership Is Important: The more nonprofit members HANO has the more effective the Alliance can be on their behalf. To learn more about HANO and to apply for membership, joining more than 270 Hawaii nonprofits who are already members, click HERE.
TRY HANO's Job Bank
Hire the Best; Find a New Job: HANO's powerful online Job Bank brings Hawaii nonprofit employers and jobseekers together. Employers, post a job or scan candidate resumes. Job hunters, post your resume for FREE and let jobs find you. Check it out − click HERE.
USE HANO Consultants
Let HANO Assist You: We can bring workshops like board governance, budgeting, fund development and advocacy to your nonprofit. We also facilitate conversations and planning sessions and provide other services. For details, click HERE.