Remove Indirect Cost Remove NICRA Remove Utilities
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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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Finding Funding for Research

Peak Proposals

Overhead covers general operating expenses like rent, utilities, and administrative expenses. If your institution requires proposal budgets to include a minimum overhead rate of 20%, it should not allow you to submit a grant application to a funder that has a 10% cap on overhead costs. Understand the implications of overhead rates.

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