A window for changing the paradigm on nonprofit overhead and indirect costs has opened, thanks to the new OMB guidance on improving government contracting with nonprofits -- particularly regarding support for funding indirect costs -- as well as increased philanthropic attention to the funding of nonprofit overhead. This window presents a tremendous opportunity to improve the financial sustainability of nonprofits and service ecosystems, and to create government-foundation-nonprofit partnerships working together on making the nonprofit capital market more efficient.
With $11 billion in government contracts to California nonprofits each year, and $2 billion in California foundation grants to California nonprofits, the stakes are high. If we move the needle just a little bit, a great deal of money can be leveraged for nonprofits. The California Association of Nonprofits -- CalNonprofits -- recognizes this unique opportunity and through this initiative, is working to move that needle.
1. OMB Uniform Guidance and overhead regulations: Working with state, county and local government agencies and nonprofits for full implementation of OMB Uniform Guidance, which mandates a minimum of 10% indirect costs in nonprofit contracts that include federal money (currently many nonprofits have contracts allowing for only 3% or 4% overhead).
Education and forums
Articles about overhead from our staff and from others -- such as "A Board Member's Guide to Nonprofit Overhead" will appear on this site, and we welcome hearing about must-read materials we should let our readers know about.
Advocacy with state agencies and the Los Angeles County initiative
2. Changing the philanthropic paradigm: engaging foundations and the three California regional associations of grantmakers to identify and support leaders in changing how foundations treat overhead in grants to nonprofits.
3. The Nonprofit Overhead Toolkit: Resources and training (web and in-person) in accounting, financial analysis, raising the issue with funders and the public, and other resources. [The Toolkit is still in development . . . not all components are completed.]
The Nonprofit Overhead Project is generously supported by the California Community Foundation, the California Wellness Foundation, the James Irvine Foundation, and the Weingart Foundation. We are also grateful to the foundations which give us unrestricted, core support, which makes projects like this one possible: the David and Lucile Packard Foundation, the Weingart Foundation, the Evelyn & Walter Haas Jr. Fund, and the California Wellness Foundation. In addition, our 9,400 CalNonprofits members are our most important funding partners of all.
CFO Task Force
The CFO Task Force advising the Nonprofit Overhead Project:
|Marsha Bailey, Women's Economic Ventures||David Lang, Bill Wilson Center|
|Chris Balog, Big Sur International Marathon||Jonas Mok, Global Citizen Year|
|Maria Bernal, Community Resources for Children||Paul Mondestin, Fund Emporium|
|Deborah Beyea Ecology Center||Chris Murphy, Consumer Advocates for RCFE Reform|
|Risa Blumlein, Social Venture Network||Erin Nielsen, Tustin Community Foundation|
|Mark Burns, Homebridge East||Jim Ogden, STAND! for Families Free of Violence|
|Sofia Burns, 2-1-1 Orange County||Janice Oshiro, Center for the Pacific Asian Family|
|Nicolie Cass Lettini, Costtree||Sumi Paik, Public Advocates, Inc.|
|Beth De La Santos, Special Service for Groups, Inc.||Christine Reyes, Coral Reef Alliance|
|David Faustina, Hope of the Valley Rescue Mission||Mary Saenz, Santa Anita Family Services|
|Janet Fletcher, Canal Alliance||Elizabeth Schaffer, Global Fund for Women|
|Cynthia Foster, Union Station Homeless Services||Steve Scholl-Buckwald, Pesticide Action Network North America|
|Lisa Fronsman, Lake Family Resource Center||Steven Schultz, Youth Policy Institute|
|Karen Frost, Larkin Street Youth Services||Guita Sharifi, Alzheimer's Family Services Center|
|Mamie Funahashi, Community Partners||Joe St. John, Koreatown Youth and Community Center|
|Danilo Garcia, A Place Called Home||Maureen Vittoria, Adobe Services|
|Laura Harter, Child Advocates of Nevada County||Will Zmchik, Pemphigus Pemphigoid Foundation|
|Wendy Hileman, Healthy Adventures Foundation|
|Daniel Johnson, Northern Valley Catholic Social Services, Inc.|
|Kendall Kummenacher, LA><Art|
 Causes Count: The Economic Power of California's Nonprofit Sector, 2014