The procurement rules governing purchases made with grant funds changed when the federal Office of Management and Budget (OMB) issued new Uniform Guidance on grant administration (the Super Circular) in late December 2014. The good news is that the one-year grace period the feds gave nonprofit organizations to comply with the new requirements has just been extended to two years.
We often hear grantseekers say they aren’t sure whether their organization is eligible for federal grants. The federal government makes thousands of grant awards annually to many types of organizations, and even to some individuals. Don’t write off this important funding source until you’ve examined the possibilities. Here are a few thoughts to consider.
Beginning in 2015, organizations that expend more than $750,000 in federal funding in any fiscal year will be required to retain an independent auditor to perform a Single Audit. Previously, $500,000 in federal expenditures triggered the Single Audit requirement. While the new threshold is a bit higher, federal funds in the form of grants, pass-through dollars, contracts, and loans add up quickly so be sure you’re ready. This brief primer explains how to select a qualified auditor and provides a simple check-list to guide your selection process.
When the new Uniform Guidance on grant administration is implemented as an interim final rule in late December 2014, the procurement rules governing purchases made with grant funds will change somewhat. Procedures must become more structured, and purchases above $3,000 will have to be accompanied by varying levels of documentation as the dollar value of purchases rises.
Understanding and implementing the new guidance on short notice will be difficult for many nonprofits. That’s why The Grantsmanship Center (the Center) has asked Henry Flood, our Senior Advisor for Grant Administration, to address procurement issues that are raising concern in the nonprofit community.
Here’s a story from the early days of The Grantsmanship Center—a valuable lesson learned in 1972, still relevant today. Norton Kiritz, founder of The Grantsmanship Center, shared this experience with his classes. Hope you enjoy this brief tale from a class transcript.
Several times each year, people ask The Grantsmanship Center how to evaluate the performance of grant development professionals. Here's what we tell them:
One of our alumni recently asked about submitting a grant proposal to a specific funder. She wanted to know what percentage of the organization’s annual budget she should request in her proposal for general operating funds. And if the organization decided to seek program funds instead, she wondered what percentage of the program budget she should request. Here's what I told her:
When it comes to statutes and regulations, the definition of terms really does matter. The definitional content of a term can have a huge impact on what you can or cannot do in a given situation.
Approximately 360 individuals and organizations commented on the proposed Circular that was adopted as final on December 26, 2013 in the Federal Register (pages 78589 to 78691). The question is who benefits from the new rules and why does the Super Circular matter?
The train en route to federal grant reform has reached the last stop on a 24-month journey from concept, through proposed reforms, to the final guidance. The new provisions—just over 100 pages—became official on December 26, 2013, with their publication in the Federal Register (pp. 78590-78691).
