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July 24, 2007
 Non-Profit Sector: Increasing Numbers & Key Role in Delivering Federal
Services
Non-profit charities have become key providers
of federally funded social service initiatives, but charities report that
the allowable percentage of overhead differs between federal, state, and
local governments, foundations, and private donors. Because federal
funding for social service programs is distributed by a variety of
funding sources, non-profit charities reported they may not be able to
plan for a specific level of program overhead and must seek other funding
to cover overhead costs to remain operational.
The Government Accountability Office (GAO) researched the role of
non-profit organizations and federal funding flows. GAO interviewed
representatives from several large non-profit member associations,
research and advocacy organizations, academic researchers, foundation
representatives, and non-profit practitioners. GAO also conducted two
roundtable discussions and reviewed existing reports on the topic.
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OPEN MINDS