Resources

Real Costs: Addressing the Overhead Funding Challenge

For over a decade, the Fry Foundation has sought actively to support essential administrative and overhead costs in the programs that we fund.  We have been engaged in efforts to expand discussions about the need for funding that cover the full costs of running high quality, effective programming.  
Below are some articles and links to resources on this topic:

Time to Reboot Grantmaking

By Michael Etzel & Hilary Pennington
Published June 27, 2017
Social sector organizations need a “healthy diet” of funding to achieve maximum impact, a concept neatly captured by the Grantmaking Pyramid now used by the Ford Foundation. more >

A Graphic Re-visioning of Nonprofit Overhead

By Curtis Klotz, CPA Published August 2016
Most nonprofit leaders agree that we need a new way to communicate about the true costs of our programs and the vital importance of strong organizational infrastructure. But we have not yet developed a simple, consistent message when sharing our view with potential supporters and investors. We are stuck with old terms and old images. more >

Allocating Program and Overhead Expenses

The Lloyd A. Fry Foundation understands that general administrative and overhead expenses are important to the success of our grantees’ programs, and we actively support these essential costs. Understanding how to allocate indirect and administrative costs to programs or overhead can be confusing. The table on the next page illustrates the ways line item expenses can be allocated. It is intended to be used as a guide. We encourage grantees to use it as they consider the full cost of delivering high quality, effective programs.
more >

A Funder's Message to Other Funders About Overhead

By Unmi Song, President of the Lloyd A. Fry Foundation. Published by Blue Avocado, April 2014
This article is adapted from a presentation made to Grantmakers for Effective Organizations (GEO). Our deepest thanks to Unmi Song for speaking these truths: more >

Nonprofits and the New OMB Uniform Guidance: Know Your Rights … and How to Protect Them

By National Council of Nonprofits. Published 2015
The federal Office of Management and Budget (OMB) has issued new rules that require governments at all levels – local, state, and federal – that hire nonprofits to deliver services to reimburse those nonprofits for their reasonable indirect costs (sometimes called “overhead” or “administrative” costs) when federal dollars are part of the funding stream. more >

OMB Uniform Guidance

By National Council of Nonprofits. Published 2015
Governments at all levels – local, state, and federal – that hire nonprofits to deliver services are now required to reimburse nonprofits for the reasonable indirect costs (sometimes called “overhead” or “administrative” costs) they incur on behalf of governments when federal dollars are part of the funding stream. more >

Functional Reporting Helping Not-for-Profit Organizations Avoid Misreporting Costs

By Edwin Olliges, CPA, Marylou E. Tawney, CPA, and Brian T. Zygmunt, CPA of Crowe Horwath.
Published May 2013 (Re-posted with permission from Crowe Horwath)
Not-for-profit organizations are required to present a breakdown of expenses by functional classification in their financial statements. However, because of the level of judgment required when allocating shared costs and identifying joint activities, some not-for-profit organizations fail to comply fully with these financial reporting requirements. The possible consequences of such omissions could include funding reductions from donors or negative publicity in the event these reporting failures come to light. more >