“Charitable nonprofits are less efficient and effective than they can be due to government policies and practices regarding payment for indirect costs, a new report from the National Council of Nonprofits finds. Investing for Impact: Indirect Costs Are Essential for Success details how a combination of governments’ inconsistent terminology, arbitrary application of those terms, and unrealistic expectations impair the ability of nonprofits to deliver services that governments at all levels contract with them to provide. The report reviews research documenting that unrealistic reimbursement practices erode the ability of nonprofits to achieve outcomes and weakens the viability of the entire sector to provide services on behalf of governments.
Investing for Impact offers practical solutions that governments at all levels can adopt to strengthen the government-nonprofit contracting relationship while ensuring higher-performing partners and cost savings for taxpayers.”
Because I’ve seen the impact these policies have in my personal board service, I urge you to read the report if the issue affects you, and see what you can do to draw attention to the inequity of current policies. More information is available at www.wileyonlinelibrary.com.
As always, I welcome your comments and feedback.