Have you been discouraged from applying for government contracts by the lack of a guaranteed reimbursement rate for indirect costs? Expenses for fundamental needs like rent, utilities, accounting, and personnel costs are all defined as indirect costs. Unfortunately — as you likely know — many organizations with State-funded grants or contracts receive limited or no reimbursement for these critical expenses. Federal “Uniform Guidance” ensuring repayment for at minimum 10% of operating costs has been in place since 2014.
This year, I sponsored and unanimously passed Senate Bill 1045 replicating these federal standards in Maryland. In 2019, I will sponsor legislation that will apply this law retroactively to multi-year grants or contracts in place prior to October 1, 2018. When Maryland organizations receive fair repayment, it increases the long-term health of the nonprofit sector. Click here for more information.