Nonprofit Sector: Treatment & Reimbursement of Indirect Costs Vary Among Grants, & Depend Significantly on Federal, State, & Local Government Practices

May 18, 2010 The Government Accountability Office of the federal Department of Health and Human Services reviewed how grant terminology for indirect costs varied among selected federal grants and how the classification of indirect costs affected non-profit grantees. Among state and local governments that have permitted non-profit organizations to use grant funds for indirect costs, many have done so via a reimbursement rate. As a result, many non-profit organizations have funded indirect costs with a variety of federal and non-federal sources when the reimbursement rate was less than the actual amount of indirect costs. Download the . . .