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Understanding Nonprofit Overhead: Strategies for Transparency and Efficiency in 2025

Blackbaud

It also includes any legal fees as well as insurance and general office management, like copy paper and ink for the printer. Organizations that have significant indirect costs and earn federal funding can negotiate a higher indirect cost rate, or Negotiated Indirect Cost Rate Agreement (NICRA), with their agency of record.

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Finding Funding for Research

Peak Proposals

It means realizing that if you are doing data collection in the field, you may need to budget for the purchase of some kind of transportation for field staff, including associated costs like fuel and insurance. NICRA covers indirect costs (facilities and administrative costs) and fringe benefit expenses.