Bill > B26-0249

This bill amends the Nonprofit Fair Compensation Act of 2020 to improve how the District of Columbia compensates nonprofit organizations for their indirect costs. The bill establishes a standard 15% de minimis (minimum) indirect cost rate that will be adjusted annually based on the Consumer Price Index, with a maximum annual increase of 3%. It requires all District grant and contract solicitations to include a plain language clause explaining indirect cost compensation, mandating that nonprofits be compensated for indirect costs in addition to direct service costs. The bill introduces new provisions that prevent agencies from using an organization's indirect cost rate as the sole factor in grant or contract decisions and requires agencies to assess an organization's quality standards first. It also establishes a new relief grant program to help nonprofits cover general operating expenses, with applications requiring detailed financial documentation. The bill mandates that the Mayor and Office of Contracting and Procurement develop clear guidelines and conduct annual training for agency staff on calculating and negotiating indirect cost rates. The implementation will be phased in over several fiscal years, starting with smaller grant and contract amounts (under $500,000) in Fiscal Year 2027 and progressively expanding to larger contracts in subsequent years.

Transportation and Infrastructure

https://lims.dccouncil.gov/Legislation/B26-0249