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 establishment of a de minimis indirect cost rate of 15% of direct costs, which will be adjusted annually based on the Consumer Price Index. The bill mandates that all contracts and grant solicitations include a plain language clause for indirect cost compensation, and it requires the Mayor and the Office of Contracting and Procurement to provide guidance on the calculation and negotiation of these costs. Additionally, the act introduces annual training for agency staff involved in grant and contract management.

Furthermore, the bill establishes a relief grant program aimed at supporting nonprofit organizations that provide human services and community-based activities. This program allows for general operating relief grants to be issued to nonprofits facing financial hardships, with applications accepted on a rolling basis. The act outlines specific requirements for grant applications, including financial documentation and a description of the organization's operational challenges. Overall, the amendments aim to ensure that nonprofit organizations are fairly compensated for both direct and indirect costs, thereby enhancing their financial viability and ability to serve the community.