
December 2018
Indirect costs remain a contentious issue for nonprofit organizations and their donors. This is largely a result of the assumption that indirect costs are somehow unrelated to the programs or work happening on the ground. The reality is that most nonprofits are faced with restrictions from private foundations, federal cuts and other increasing program costs, which affect financial recovery from indirect costs. With regulations changing and support for an organization’s expenses wavering, how should nonprofits operate when managing indirect costs?