Hi Amy, the Federal government is a great grant source, but not without costs as you know. I submit that nonprofits will want to (1) have some payroll and HR infrastructure in order to allocate timecards well, keep timecard reports for audits, have resumes and background/DMV reports for audits, and be ready to hire timely when there is staff turnover; (2) ask for budget modifications “early and often” if needed, when spending is different from what was initially anticipated – waiting to the last minute can spell disaster; (3) allocate expenses well and be ready to explain the rationale behind allocations; (4) perform month-end close quickly when there are reporting deadlines; and (5) calculate indirect cost well, if applicable.