Small Community-based Nonprofit Grant Program

The small community-based nonprofit infrastructure grant program (grant program) is created in the division of local government in the department of local affairs (division) to provide grants to small community-based nonprofit organizations that have been impacted or disproportionately impacted by the COVID-19 public health emergency for infrastructure and capacity building. The division is required to administer the grant program and to contract with no more than 10 nonprofit organizations with specified qualifications (regional access partners) to award and monitor the grants.

To be eligible to receive a grant through the grant program, an organization must be one of the following:

• A small community-based nonprofit organization that operates under section 501 (c)(3) of the federal internal revenue code;
• A small community-based nonprofit organization that does not operate under section 501 (c)(3) of the federal internal revenue code and that works with a fiscal agent; or
• A collaboration of multiple small community-based groups that are not nonprofit organizations and that work with a fiscal sponsor.

Each small community-based nonprofit organization or each of the small community-based groups that apply for a grant collaboratively is required to satisfy specified criteria to be considered an eligible recipient for a grant through the grant program. Grant recipients may use grant program money for infrastructure and capacity building purposes, including data technology needs, professional development for staff and board members, strategic planning and organizational development for capacity building and fundraising, communications, and existing program expansion, development, or evaluation. Grant recipients may not use grant money for capital improvements, real estate or land acquisition, payment of debt, advocacy or lobbying, organizing, endowments, or reserves.

To receive a grant, an applicant must submit an application to a regional access partner in accordance with policies and procedures developed by the division. The regional access partner is required to award grants and ensure that:

• The maximum grant award does not exceed $100,000; and
• A grant award does not exceed 30% of the recipient's annual operating budget.

The act appropriates $35 million from the economic recovery and relief cash fund to the division for the purposes of the grant program. The regional access partners are required to award the grants for the purposes of the grant program on or before December 30, 2024, and recipients of the grants are required to expend all grant money by December 30, 2026. The division and any person that receives money from the division, including a regional access partner, is required to comply with the compliance, reporting, record-keeping, and program evaluation requirements established by the office of state planning and budgeting and the state controller.

(Note: This summary applies to this bill as enacted.)