Site Search
- resource provided by the Forum Network Knowledgebase.
Search Tip: Search with " " to find exact matches.
Government-Nonprofit Contracting Reform
The Office of Management and Budget (OMB) Uniform Guidance is the biggest change in government grant guidelines in over 30 years. The rules require that federal grants and contracts—including those that pass through state and local governments—include a “reasonable amount” for indirect costs. A “reasonable amount”, according to the guidance, is at least 10 percent of direct costs and, in some cases, nonprofits can negotiate a higher amount.
With the nonprofit sector earning nearly 33 percent of its revenue from government grants and contracts, this new requirement is a game changer. Nina Stack wrote a piece discussing these changes for the Geraldine R. Dodge Foundation blog:
Excerpt from A Social Sector Game Changer:
“Nonprofits that are hired by the government to perform a service and paid through federal dollars are to use at least 10 percent of the direct costs of their grant or contract to pay indirect costs. BOOM! Just as John Madden would say. A mandate for funding that can be used for core operations. Never before has there been such a clear directive and recognition from the federal government.”
To see this change however, industry-wide advocacy is essential to ensure that all nonprofits are aware of this monumental shift and that governments follow the new requirement. Without advocacy, it is very possible that, despite the requirement to add an additional 10 percent or more to pay for indirect costs, legislative bodies at the federal, state and city levels may further reduce project budgets to keep them flat. And this could mean that in order to maintain the same level of services, nonprofits will seek additional resources from the philanthropic sector to make up the difference. Therefore it is imperative that philanthropy remains active in the conversation between nonprofits and government to continue to maintain a balance in the critical services provided by all.
What this means for nonprofits:
- Government contracts are now required to reimburse nonprofits for reasonable indirect costs (administrative, “overhead”) as part of their service-delivery agreement.
- The OMB Uniform Guidance is only a promise of better treatment—nonprofits should know the rules and protect themselves.
What this means for foundations:
- Advocacy is needed! To ensure government partners do not underfund nonprofits due to the new rules, foundations need to help spread awareness and enforce the regulations.
In New Jersey, the New Jersey Center for Nonprofits has been teeing up advocacy, information sessions, and other assistance to help non-profits take advantage of the new rules. For questions and information about the new guidelines, please visit the resources below.
Resources
Federal Register: OMB Uniform Guidance
As part of its ongoing commitment to students, the Educational Testing Service (ETS) awarded eight scholarships to students attending colleges across the nation.
The assessment and research organization, presented more than $80,000 in scholarships to students this year through two of its scholarship programs, ETS CARES Scholarship and the Trenton Central High Scholarship. The Trenton Central High scholarships are renewable up to four years, assuming the students maintain a 3.0 GPA.
"We are so proud to support you on this journey--your future matters to us," ETS President and CEO Amit Sevak told the students at an awards ceremony held in their honor on July 14. "These scholarships are part of our commitment to give back, especially here in our state of New Jersey. I also want to recognize the ETS staff because without their incredible generosity, these scholarships and our other work in the community would not be possible."
NJM Insurance Group said it recently made a $100,000 donation to benefit hunger relief efforts across the mid-Atlantic region.
The monies are part of the West Trenton-based firm’s yearlong commitment to supporting communities, which now totals more than $2 million in donations in 2022.
NJM’s support of communities is rooted in a culture of purpose-driven service. The company directs charitable contributions toward organizations that support arts and culture, health, community assistance, safety and financial literacy. Other areas of focus include education and enrichment and revitalization programs such as those offered by social service organizations and food banks.
“NJM is a service organization working on behalf of our policyholders and the communities in which they live and work,” Mitch Livingston, NJM CEO and president, stated. “We partner with nonprofits and organizations dedicated to delivering needed resources that can positively impact lives, and we are privileged to support these causes throughout the region.”
Newark Mayor Ras Baraka on Tuesday announced the recipients of the 2022 Creative Catalyst Fund awards. A total of 114 grants will be awarded to individual artists and artists’ collectives, with an average award of $3,200; and 34 grants will be awarded to small and midsized arts organizations with an average award of $10,100.
Baraka created the fund in January 2020 as a multiyear initiative providing the local community of artists and small and midsized arts organizations up to $1 million annually for at least three years. The fund has awarded a total of $2.35 million in grants in its first three years. Grantees use the funds to help pay for operating costs, space rentals, staff, programming costs, supplies and equipment, and COVID-related expenses.
“Newark has a long history as a center of the arts, and our administration has supported the arts in word and deed, creating great works like the second-longest public mural on the East Coast. We are proud, privileged and humbled to write a new chapter by supporting this year’s grantees. Their works will define the voice and talent of a new generation of Newark artists for our present and future,” Baraka said.
The Devils Youth Foundation, with the support of its marquee brands, the New Jersey Devils and Prudential Center, issued a record number of grants, both in money donated and nonprofits supported, having a significant impact throughout New Jersey.
According to a Tuesday announcement, this year, the Devils Youth Foundation provided 24 grants worth over $890,000 to organizations having an impact in New Jersey through community outreach programs that support over 20,000 youth. The organizations include: Arts Education Newark; Big Brothers Big Sisters of Essex, Hudson & Union Counties; Boys & Girls Club of Newark; Challenged Athletes Foundation; Coalition for Food and Health Equity; Community FoodBank of New Jersey; Educational Arts Team; Express Newark (Rutgers); FOCUS Hispanic Center for Community Development Inc.; GreenLight Newark; Hockey in New Jersey; Jazz House Kids; La Casa de Don Pedro; Mentor Newark; Newark Boys Chorus School; Newark Community Street Team; Newark Day Center; New City Kids; Oasis — A Haven for Women and Children; Playworks; Record High; Save the Music Foundation; Special Olympics of New Jersey; and United Community Corp.
The Devils Youth Foundation, which serves as the charitable arm for the New Jersey Devils and Prudential Center, recently awarded a $100,000 grant to United Community Corp. to support the agency’s community refrigerator initiative and ongoing nutritional programming.
The foundation also raised an additional $80,000 through the first round of the NHL playoffs for another community refrigerator and $60,000 through the second round of the playoffs for a food delivery truck. These efforts brought a total of $240,000 in funding to back UCC’s efforts in mitigating hunger in Greater Newark.
UCC Executive Director Craig Mainor obviously was thrilled.
“We could not be more grateful for the generous grant award, funds raised and support from the Devils Youth Foundation that will allow UCC to create greater accessibility for fresh, nutritional food in Newark for thousands of people,” he said.
“Whether it’s installing another community refrigerator or educating youth about proper nutrition and health and wellness, we want to ensure that we uplift community members through this award to transform each ward of the city.”
Any and all staff and/or trustees from new CNJG members and any new staff or trustees of veteran CNJG members are invited to this in-person meeting prior to the Annual Meeting and Holiday Luncheon Pre-Meeting Workshop to meet fellow new members and a few CNJG staff, hear about each other’s funding strategies, and learn about the programs and services CNJG offers. This is a great chance to meet fellow funders in a casual, yet professional setting, and build your personal network within the CNJG network. You’ll see these familiar faces throughout the rest of the day’s events..
Registration for CNJG’s Annual Meeting and Holiday Luncheon is separate from the New Member Orientation. Please register here for the Annual Meeting and Holiday Luncheon.
There is no cost to attend for CNJG members. A light breakfast, and coffee, tea, beverages will be available.
If you have any questions about who can or should attend, please contact Craig Weinrich, Director of Member Services at 609-414-7110 x802.
The Philadelphia 76ers, looking to make an even greater impact in the community in which they train, are making a donation of $120,000 to the Camden County Police Department, the largest private donation ever.
The donation, made through the Sixers Youth Foundation, will fund youth fitness initiatives throughout Camden city, as it will be used to enhance and expand several programs in the Camden County Police Department’s Village Initiative, including the open gym and resource nights, Camden officials said.
Camden County Commissioner Director Louis Cappelli was floored by the gesture — but noted it follows the effort the team has been making for some time.
“From the start, this agency has been focused on community engagement and facilitating a lifelong dialogue in order to become part of the fabric of the city,” he said. “This investment by the Sixers underscores the importance of the work we do with our residents on daily basis with a focus on our youth in Camden.
“I want to thank them for walking the walk and being an important part of our village here in Camden County.”
The PNC Foundation today announced it is allocating a $5.2 million grant pool across its markets to implement or enhance high-quality, nature-based outdoor play and learning environments. This grant pool celebrates the 20th anniversary of PNC Grow Up Great®, PNC's $500 million, bilingual, signature philanthropic initiative designed to help prepare children from birth through age 5 for success in school and life.
Recent PNC-funded research by the National Institute for Early Education Research (NIEER) showed that 49% of children ages 3-5 are playing outside less than once a day. A recent NIEER literature review also suggests that pre-K programs conducted in nature-based settings can promote better learning and development.
"PNC has been in the early childhood education space for 20 years, focused on supporting the high-quality early education that is the foundation of a bright future for young children," said Sally McCrady, president and chair, PNC Foundation. "For the milestone anniversary of PNC Grow Up Great, we're thrilled to help provide young children across our communities with outdoor spaces that can help spark their natural sense of wonder and curiosity."
The Camden Funders Affinity Group serves as a vehicle for funders to connect and share updates about their initiatives throughout the city. We heard from Group members an interest to better understand the current environment that these programs serve and to identify opportunities for future endeavors.
In this first in-person meeting of 2024, please join your fellow Camden Funders to hear from each other about our current work in the city, as well as to gain insight into the upcoming efforts we each intend to engage in. Information gathered at this meeting will be used to inform our next meeting, where we will hear directly from leaders working across the city to advance progress in Camden. Light refreshments will be served.
To help with planning, please email Chanika Svetvilas about Camden initiatives and updates you'd like to share with attendees during the meeting.
Cost: Free for CNJG Members; $50 for Non Member Grantmakers.