In February, there was a particularly important development with respect to the governing regulations for nonprofits in the federal grant and contract arena. The U.S. Office of Management and Budget ("OMB") has proposed an overhaul of the regulations that govern federal grants and, to a lesser extent, contracts, for nonprofits, including OMB Circulars A-110, A-122, and A-133, as well as five other documents.

OMB Issues Proposed Reforms to Nonprofit Circulars -

A year ago, OMB sought public comment on its thoughts for reforming the various policies that govern federal grants and contracts for nonprofits. Subsequently, on February 1, 2013, OMB published proposed reforms aimed at improving the way that the federal government administers the more than $600 billion awarded annually for grants and other types of federal financial assistance. This reform proposal, titled “Proposed Uniform Guidance: Cost Principles, Audit, and Administrative Requirements for Federal Awards,” combines the multiple federal regulations that currently govern the way the federal government administers grants and, to a lesser extent, contracts, into a single, comprehensive, and streamlined uniform policy guide. According to OMB, the revisions are intended...

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