Jitasa Nonprofit Blog

The Scoop on OMB Uniform Guidance for Nonprofits

The Office of Management and Budget (OMB) Uniform Guidance is reforming the way the nonprofit community addresses and handles indirect costs or overhead. These new mandates will allow nonprofits to share the burden of operating costs with their state and federal government under certain circumstances.

According to the National Council of Nonprofits “The new guidance means that nonprofits should be able to focus more on their missions and should be under less pressure to raise additional funds to essentially subsidize governments. In turn, charities with no government contracts or grants could see less competition for scarce philanthropic dollars. This is a major win for the entire charitable nonprofit community.”

However, understanding these adjustments and putting the changes into motion create a complicated situation for the nonprofit community. Below we’ve rounded up some articles from sources we trust to clarify the issue.

1. New OMB Guidance on Indirect Costs: What it does and Why it mattersfrom the National Council of Nonprofits will explain the importance of this guidance to nonprofit contractors, foundations, and nonprofits without government contracts or grants. They also discuss next steps. This is a great article if you’re not already familiar with the OMB Guidance.

2. OMB Final Uniform Guidance on administrative requirements, cost principles, and audit requirements for federal awards. Written by Certified Public Accountant and Chartered Global Management Accountant Deby Macleod, she breaks down what you need to know in a way that won’t leave you scratching your head.

3. Owning your own costs is imperative. Find out why you need to and how to go about it with the documents from a previous webinar presented by CEO Jeff Russell and the National Council of Nonprofits.

Renata Poe Massie, Content Creator for Jitasa


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