Documented procurement policies, shifting donor expectations, tightening compliance requirements — change is, as always, afoot in the nonprofit sector. Our 2025 Nonprofit Update webinar highlighted some of the most critical changes affecting your work today; this article summarizes those updates with practical insights you can use to help your organization remain compliant, secure funding, and maximize impact in your community.
- Grants & Funding Updates Affecting Accounting and Compliance
Recent updates to Uniform Guidance place an even stronger emphasis on ensuring consistency, transparency, and accountability in how grants and funds are managed.
Key takeaways include:
- Indirect Cost Rate Adjustments: The guidance now emphasizes ensuring nonprofits are claiming appropriate indirect cost rates and allocating these correctly over their programs. To ensure your organization remains compliant, schedule regular review of its cost classifications.
- Procurement Standards: Updates also reaffirm procurement regulations, calling for fair and open competition in the acquisition of goods and services, with written policies to back it up.
What this means for you:
Take the time to revisit your organization’s accounting policies and internal controls. Assess how your nonprofit tracks funding and expenditures and confirm compliance with the outlined updates. If you are unsure how to approach this, consult your Rehmann advisor for guidance.
- Critical Tax Updates for Exempt Organizations
Significant tax changes have also been introduced, with implications for exempt nonprofits. One noteworthy update within the last year includes the introduction of Clean Energy Tax incentives, which could offer substantial financial advantages.
What’s notable?
- Clean Energy Incentives: Nonprofits that meet specific clean energy requirements may now qualify for tax credits. Leveraging these can help organizations reduce operational costs while supporting environmentally sustainable practices.
- Unrelated Business Income Tax (UBIT) Considerations: Recent rulings have clarified how unrelated business income is taxed, emphasizing the importance of accurate categorization of income streams. (Your advisor can help you with this.)
What this means for you:
If your nonprofit owns and operates facilities that could benefit from clean energy credits, now is the time to evaluate opportunities for tax savings. Click here to learn more about what projects and technology qualify and how much you could benefit. Additionally, review how your organization tracks and reports unrelated business income to avoid compliance issues. Consulting an expert on these tax changes can help you maximize available benefits.
- Emerging Trends in Grant Writing and Funding Opportunities
The way nonprofits approach funding is also shifting. With heightened competition for grants and evolving priorities among grant-makers, it’s essential to adapt your strategies to secure the resources your organization needs.
Key trends include:
- Focus on Equity and Inclusion: Perhaps in reaction to the federal administration’s push to deprioritize, many grantmakers are prioritizing initiatives that promote diversity, equity, and inclusion. Highlighting these elements in your proposals can give your nonprofit a competitive edge.
- Collaboration Over Competition: Funders are increasingly supporting partnerships between nonprofits that align with shared goals. Demonstrating how your organization collaborates with others can strengthen your case for support.
- Outcome-Driven Proposals: Grantmakers want to see measurable results. Clearly communicate the impact your programs make and back it up with data.
What this means for you:
Review your current grant-writing approach and align it with what funders are looking for in 2025. Incorporate data-driven storytelling into your proposals and explore potential partnerships to broaden your funding opportunities. If you’re unsure where to start, connecting with your Rehmann advisor can set you on the right path.
Stay Ahead with the Right Insights
The nonprofit landscape is filled with opportunities — if you know where to look. By staying informed about updates to regulations like Uniform Guidance, taking advantage of tax incentives, and adapting to shifts in funding priorities, your organization can achieve strategic advantages that help further its mission.
If you have any questions about these updates or how they may impact your operations, our team is here to help. Reach out to your Rehmann advisor for tailored advice, and don’t forget to register for our next public sector webinar for deeper insights and actionable strategies.