Can Nonprofits use Fixed Carry Forward Rates?
For nonprofit entities, “A fixed rate shall not be negotiated if all, or a substantial portion of the organization‘s awards, are expected to expire before the carry-forward adjustment can be made; the mix of Federal and non-Federal work at the organization is too erratic to permit an equitable carry-forward adjustment; or the organization‘s operations fluctuate significantly from year to year.” (2 CFR 230, Appendix A, Section E.2.e).
