The Latest Lowdown on Government Money
It may seem like manna from heaven, but there are pitfalls to be aware of.
Unfortunately this does not mean that more money is allocated for nonprofit contracts. So if a government contract was paying for 100 beds to shelter the homeless, if it is forced to add a 10 percent overhead cost onto the contract, it may just say, "Well, we'll pay for 90 beds instead."
If your contract negotiations come down to this, it would mean that your nonprofit will serve fewer people, but perhaps you can provide better services to the people you DO serve.
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