• Rumors of Federal Single Audit Threshold being reduced back down?

    Posted by jennifer_t on October 7, 2025 at 6:50 pm

    I recently heard that the current legislation is in the process of 1) reducing the Federal Single Audit threshold back down to $750k and 2) reducing the indirect rate back down to 10%.
    This information comes from a reliable source (the organization’s focus is on capacity building advocacy for non-profits in the state, so they are typically very in-tuned to local and federal policies), but I wasn’t at the meeting so wasn’t able to ask questions about where they go this info from. Some quick searching didn’t lead me to a single source suggesting this was in the works, but I was curious if anyone else in the forum has heard something similar.

    Thanks!

    Amanda_NFC replied 1 week, 5 days ago 3 Members · 2 Replies
  • 2 Replies
  • Jim

    Member
    October 9, 2025 at 11:44 am

    I’m also interested in this question. I heard about rumors of this possibility 6-8 months ago, but not since. At the moment, 15% de minimus seems to be the law for new grants, but there are still plenty of forms in use listing the old 10% rate.

  • Amanda_NFC

    Administrator
    October 17, 2025 at 9:34 am

    “The hard-fought victories for nonprofits in the OMB Uniform Guidance are indeed under threat – including rolling back several other changes that would make the government-nonprofit grants/contracts process more inclusive and easier to navigate. We know that from the recent Executive Order around these practices that would also reward organizations with the lowest indirect costs (something we in the nonprofit sector know will end up reducing effectiveness and efficiency, not increasing it). If changes happen, it’s more likely that it will come from OMB, rather than through legislation. It is definitely something to watch – and plan – for.”

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