Revised OMB Uniform Guidance Brings Key Updates for Nonprofits

The revised OMB Uniform Guidance, which went into effect on October 1, includes important changes to federal grants and contracts with nonprofits

  • Notices of Funding Opportunities. NOFOs must now include basic information at the top of a grant announcement so that applicants can more easily decide whether or not to apply. 
  • Reporting Requirements. The new rules instruct federal agencies to eliminate reports that are not necessary for the effective monitoring of the grant.
  • Improving Indirect Costs. Federal grants must provide the guaranteed minimum (de minimis) rate for indirect costs of 15% of modified total direct costs. The prior de minimis rate was 10%. 
  • Upfront Payments. According to the OMB Grants Reform Preamble, the recipient or subrecipient of federal grants can be paid in advance provided certain financial and written procedures are met. Reimbursable grants are preferred only when those requirements cannot be met.