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Understanding Nonprofit Overhead: Strategies for Transparency and Efficiency in 2025

Blackbaud

But recent events and changing philosophies on overhead costs have shed light on these expenses, which are required to run a functioning nonprofit. 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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7 Ways Your Nonprofit Can Build a Strong Financial Foundation in 2024

Blackbaud

If a government regulation changed or community preferences shifted, would you have time to react? Make Sure You’re Ready for Your Next Government Grant Government grants are a great addition to any nonprofit’s balance sheet. Tip 1: Before applying for a government grant, perform a financial integrity risk assessment.

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Your Unrestricted Funds Need Stewardship, Too

Blackbaud

These grants typically have goals associated with them—the foundation has a specific mission, or the government grant wants to address a specific societal issue. Many don’t cover operating costs or have a small allotment for indirect costs such as salaries, insurance, and utilities.

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Finding Funding for Research

Peak Proposals

What’s a Better Fit, Government or Foundation Funding? Government Databases IV. Not only will the funder require one, but they may expect to have significant input on your M&E plan, to the point of telling you the indicators you should use; this level of engagement is not uncommon in government-funded grants.