§12653s Nonprofit Capacity Building

Summary

Creates a program that gives grants to experienced nonprofit groups to help small and midsize nonprofits get better at running their work. The grants cover 50% of the cost of training and support like best practices, budgeting, grant writing, and tax compliance; the grantee must pay the other 50% in cash. The agency will try to fund one grantee in each State with grants of at least $200,000 when possible. Applicants must apply and show they have the money for the required match. Grants are given first to places where nonprofits face big resource problems and the agency will weigh how many nonprofits will be helped, how far the grant will reach, and the quality of the help offered. Most matching funds must come from third parties (foundations, corporations, donors, or local governments), except certain private foundations or donor-advised funds must use their own money. Any third-party match cannot be less than what those donors gave the year before. The law made $5,000,000 available each year for fiscal years 2010 through 2014 to run this program. Defined terms: "intermediary nonprofit grantee" = a grantee that gets a grant; "intermediary nonprofit organization" = an experienced group that helps small and midsize nonprofits build capacity; "nonprofit" = entities that meet the tax rules in sections 501(c)(3) or 170(c)(1)–(2); "State" = each State and the District of Columbia.