Nonprofit News: Federal, State, and Local Governments Are Now Required to Pay Overhead Costs Incurred By Nonprofits
New rules from the federal Office of Management and Budget (OMB) now require all levels of government – federal, state, and local – to reimburse non-profits for “reasonable” overhead and administrative costs incurred while working on government projects. The new rules, called the Uniform Guidance, took effect on December 26, 2014 and apply to any projects that are funded wholly or partially through government funds.