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What would that stabilization of insurance for nonprofits look like? Lower liabilityinsurance limits First, the community-based nonprofit sector generally must carry lower limits of liabilityinsurance. Whenever possible, we make increases in increments over several years to allow nonprofits budgets to catch up.
This will include money for payroll, benefits, payroll taxes and contract employees. Most nonprofits set aside a percentage of their annual budget to go toward staffing. This number can vary depending on the size of the nonprofit, but for most, this is anywhere from 60-90% of their annual budget.
If you have a number of active grants, you might be able to cover your unrestricted costs if each of your awarded grants allows for at least a percentage of the budget to go toward overhead costs. capped at 10%)—or if several of your grants don’t allow overhead costs at all—then you can quickly run into budget difficulties.
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