Revised foreign assistance policies of the United States Agency for International Development (USAID) now include a limited allowance to cover overhead expenses incurred by those non-governmental organizations (NGOs) that do not maintain negotiated rates with the U.S. Government. This includes local NGOs (LNGOs) newer to direct funding. The limited allowance provides a fixed maximum percentage that NGOs without a negotiated rate can apply to any U.S. Government funded program. The new limited allowance is one key element of USAID Forward, the reform initiative launched in 2010 that among other features seeks to strengthen the capacity of grant-recipient LNGOs to achieve greater impact with development programs. Nevertheless, as this thesis based on original qualitative research will show, the staff of many of LNGOs upon which USAID is focusing are unaware of the options and requirements for obtaining sufficient overhead cost coverage. The affected NGOs thus in fact operate at a disadvantage, especially in comparison with larger international NGOs (INGOs) with negotiated rates and greater financial knowledge.
|School:||The George Washington University|
|Department:||International Development Studies|
|School Location:||United States -- District of Columbia|
|Source:||MAI 55/05M(E), Masters Abstracts International|
|Subjects:||Accounting, Economics, Public administration|
|Keywords:||International development, Overhead|
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