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Revisions to OMB Guidance on Federal Grants
Hello everyone! We are excited to learn about upcoming revisions (effective 10/1/24) to OMB guidance on Federal grantmaking which among other things will raise the de minimis rate from 10% to 15%, raise the single audit threshold from $750K to $1 million, and favor up-front payments rather than reimbursements. All in all, these revisions appear to increase the accessibility of Federal funds and remove many of the barriers that have kept many organizations from applying. There’s an excellent summary issued by the National Council of Nonprofits at https://www.councilofnonprofits.org/files/media/documents/2024/ncn-analysis-omb-uniform-guidance-final-rule-2024.pdf
We’d love to hear from you! How might these changes impact your organization and how you manage / approach Federal grants? Your thoughts and reactions are welcome!
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1 Reply
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Hello Wade. This certainly looks like encouraging news for many nonprofits. The increase to a 15 percent de minimis rate is particularly interesting. I think the changes around reimbursement could also make a meaningful difference. Having access to funds sooner can ease some of the cash flow pressure smaller organisations face when managing federal grants. It could also lower some of the practical barriers for smaller nonprofits considering federal funding. I would be interested to see whether these changes encourage more organisations to apply.
