An Act enhancing the effectiveness of nonprofits’ core mission work through full cost funding

This bill requires state-funded grants and contracts given to nonprofit organizations to cover indirect costs, which are expenses like administrative overhead that are not directly tied to a specific project. It mandates that nonprofits receiving state money be reimbursed at the same rate they have negotiated with the federal government or, if they have no such agreement, at a minimum rate of 15% based on standard federal guidelines. The law applies to any nonprofit that is tax-exempt under specific Internal Revenue Code sections, regardless of whether the state funds go directly to the organization or through a third party. By allowing these organizations to recover full project costs, the legislation aims to improve their ability to focus resources on their core mission work.