A National Imperative: Joining Forces to Strengthen Human Services in America (Jan 2018)

CASE STUDY: SETTING UP CBOs FOR FINANCIAL SUCCESS INMONTGOMERY COUNTY, MARYLAND

In Montgomery County, Maryland , CBOs are given access to tools and trainings to help them succeed financially and to navigate the process of contracting with government agencies. Training sessions are provided by the nonprofit association Nonprofit Montgomery and funded in large part by the County’s Department of Health and Human Services. Training sessions look to equip CBOs and other nonprofits in the County with skills around financial management and budgeting, knowledge of contracting and reporting procedures, and approaches to collaborating successfully with government agencies. Nonprofit Montgomery also serves as a forum facilitating collaboration between the County’s government agencies and nonprofit providers. For instance, the County’s Department of Health and Human Services works with CBO members of Nonprofit Montgomery to obtain feedback on and understand the impacts and implications of new and proposed regulations. Recently, the Department worked with CBOmembers of Nonprofit Montgomery to refine and implement a standardized process of determining indirect rates for contracts with the County. The process specifies how CBOs should calculate their indirect rates, including what costs can and cannot be included in their calculations. The Department then corroborates CBOs’ indirect rates based on their audited financial statements. With greater transparency and accountability in the rate-setting process, CBOs can bid on contracts more effectively, while the Department is provided a clearer view into CBO financial performance. Establishing clear guidelines around indirect rates has also signaled to CBOs that Montgomery County understands them as businesses and is invested in supporting their business needs.

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