New OMB Guidance on Indirect Costs

The White House Office of Management and Budget (OMB) issued guidance that nonprofit’s indirect costs are legitimate expenses.

According to the National Council of Nonprofits, the OMB Guidance states, ” … all federal agencies to reimburse a nonprofit’s indirect costs by applying the nonprofit’s federally negotiated indirect cost rate, if one already exists. If a negotiated rate does not yet exist, then nonprofits are empowered either to request negotiating a rate or to elect the default rate of 10 percent of their modified total direct costs (MTDC).

2-page, PDF, 307 KB


Keywords: indirect, cost, reimbursement, negotitated, rate, 10 percent