Federally Approved Rates

Nonprofits receiving Federal funding must have federally approved rates for many allocated expenses.

• Rates are available for fringe benefits costs, general and administrative costs, or separate rates for administrative costs and facilities costs rather than one rate for general and administrative costs.
• The rates are granted by the nonprofit’s cognizant Federal agency.
• These rates must be applied consistently to all the nonprofit’s activities and not just those federally funded.
• Circular A-122 from the U.S. Office of Management and Budget (OMB) provides more information about federally approved rates.  This circular is available at www.grants.gov.