Remove Federal Grants Remove Finance Remove NICRA
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Understanding Nonprofit Overhead: Strategies for Transparency and Efficiency in 2025

Blackbaud

Most nonprofit finance teams have been taught to keep their overhead costs buried deep within their financial statements. Office of Management and Budget (OMB) revised their uniform guidance in 2024, increasing the de minimus (or standard) rate allowed for indirect costs—overhead for federal grants—from 10 to 15%.

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Finding Funding for Research

Peak Proposals

USG negotiated indirect cost rate: In the case of USG grant applications, many institutions (this includes both educational institutions and nonprofits) have a Negotiated Indirect Cost Rate Agreement (NICRA) with the US government. NICRA covers indirect costs (facilities and administrative costs) and fringe benefit expenses.