The Nonprofit Services Preservation Amendment Act of 2026 amends the Nonprofit Fair Compensation Act of 2020 to enhance the compensation structure for nonprofit organizations receiving grants and contracts from the District. Key provisions include the requirement for grants and contracts to cover indirect costs in addition to direct service costs, establishing a de minimis indirect cost rate of 15% of direct costs, and mandating the inclusion of a plain language indirect cost compensation clause in all relevant solicitations and awards. The bill also directs the Mayor and the Office of Contracting and Procurement to provide guidance on the calculation and negotiation of indirect cost rates, conduct annual training for agency staff, and implement a relief grant program to support nonprofit organizations.

Additionally, the bill outlines specific timelines for the applicability of these provisions based on the estimated cost of grants and contracts, ranging from $500,000 to over $10 million, beginning in Fiscal Year 2027. It emphasizes the importance of transparency and communication by requiring that all solicitations include contact information for inquiries related to indirect cost rates. The legislation aims to strengthen the financial viability of nonprofit organizations and ensure they are adequately compensated for the full scope of their services.