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Understanding Nonprofit Overhead: Strategies for Transparency and Efficiency in 2025

Blackbaud

Your rent or mortgage payment and utilities are also considered management and general expenses. 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

Overhead covers general operating expenses like rent, utilities, and administrative expenses. 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.