Indirect Cost Rates for Nonprofit Organizations: Reimbursement of Facilities and Administrative Costs

This course will identify the guidance within 2 CFR Part 200 and provide strategies and best practices to achieve the organization's costing goals. This session will provide practical, hands-on context to help you increase your direct and indirect cost recovery and manage your indirect costs rate. The panel will also describe the different rate development methodologies and allocation questions, discuss strategies for enhancing indirect costs recovery, and review other guidance to mitigate risk.

Almost every nonprofit must engage in the process of negotiating federal indirect rates or developing a cost allocation plan to charge costs to awards (and sometimes both). Nonprofits face unique challenges in recovering indirect costs either through indirect rates or by directly allocating traditional indirect costs and recovering them as direct costs from awards. These challenges are driven by the various and unique types of awards that nonprofit organizations receive, which may require different allocation practices.

As non-profits go through this process, many often wonder if they have done everything within the constraints of federal regulations to maximize the organization's direct and indirect cost recovery. In this session, we will discuss strategies that may be employed to maximize direct and indirect cost recovery (with an emphasis on indirect), both through indirect rates and the direct allocation methodology. We will discuss some unique challenges with the various federal agencies negotiating rates with nonprofits and how you should prepare and review recent rate agreements to give you helpful tips.

Listen as this session explores rules and best practices for indirect cost rate recovery for nonprofits.