Learn how to make smarter strategic decisions on program performance with the proper allocation of costs.
Indirect cost allocation can be confusing but understanding how to allocate these costs is crucial in order for an organization to accurately capture and recover cost incurred. Overhead and G and A are part of the cost of doing business and nonprofits need to know how to present their programs in a way that represents the true picture of what goes into conducting the program. We will discuss how to identify indirect costs and methods and cost drivers for allocating an indirect cost pool across programs. We will also discuss joint cost and how it can help you present your fundraising costs more accurately as well as what you need to do in order to have costs that qualify for this allocation. Finally, we will discuss the complex world of Negotiated Indirect Cost Rate Agreements for Federal awards. We will go over the guidelines for what's unallowable under Federal guidelines and how that gets treated and then finally how an organization applies for an indirect rate for a Federal award.
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Why Lorman?
Over 32 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Agenda
Allocating Indirect Costs
- Why Allocating Costs Is so Important for Nonprofits
- Identifying Indirect Costs
- Different Methods for Allocating
Joint Cost
- What Qualifies as a Joint Cost
- Meeting the 3-Part Test
- Ratios and Charity Navigator
Negotiated Indirect Cost Rate Agreement for a Federal Award
- Allowable/Unallowable Costs Under Federal Guidelines
- Modified Total Direct Costs vs. Labor
- Applying for a NICRA
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Why Lorman?
Over 32 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Credits
OnDemand Webinar
This course was last revised on October 17, 2018.
Call 1-866-352-9540 for further credit information.
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
Audio & Reference Manual
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
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Why Lorman?
Over 32 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Faculty

Carol Barnard, CPA, CFE
Aronson LLC
- Senior manager in the nonprofit services group at Aronson LLC
- Has extensive experience with federal funding and Uniform Guidance audit requirements, making her well versed in cost principles and compliance issues
- Obtained her Certified Fraud Examiner designation in January 2012
- Member of the Association of Certified Fraud Examiners and a member of the American Institute of Certified Public Accountants
- Was contributing author and editor of The Financial Management Handbook for Associations and Nonprofits, published by ASAE
- Licensed in the state of Maryland and Virginia and has been working in public accounting for fifteen years specializing in nonprofit organizations
- M.B.A. degree in accounting
- Can be contacted at 301-222-8214 or [email protected]
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Why Lorman?
Over 32 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

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