New Rules May Help Nonprofits Cover Their Overhead

For anyone who cares about the health and viability of the nonprofit sector, recent regulatory changes in the way the federal governments fund nonprofits deserve attention. The new rules stipulate that nonprofits should receive additional funds to cover their indirect costs. Indirect expenses, overhead, administrative costs: These terms mean roughly the same thing in the nonprofit sector. They are costs associated with running the non-constituent-facing operations of an organization. This includes such indispensable organizational activities as fundraising, executive management, human resources and information technology.