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Special
Alert: The Stimulus Package: Is Your Nonprofit Receiving Funds (or
Should It)? Finally some good news: the American Recovery and Reinvestment Act of 2009 (ARRA), or "the stimulus package," passed Congress this month and provides for $787 billion in spending and tax cuts designed to create or save more than three million jobs and stimulate the economy. While certainly no guarantee to end the recession we are in-- it does contain a wealth of spending and funding possibilities for nonprofit organizations and for many of our client communities. Where is $787 billion going?
Total Revenue from Federal Recovery Website ($787 billion). Tax Cuts $288 billion-includes $15 for Infrastructure and Science, $61 for Social Programs, $25 for Schools and $22 for Energy, so total funds are $126 for Infrastructure and Science, $142 for Social Programs, $78 for Schools, and $65 for Energy. State and Local Government $144 billion- prevents state and local cuts to health and education programs and state and local tax increases. Zimmerman Lehman is of two minds: as fundraisers we want to ensure that all of our clients (and ZimNotes subscribers) can access these funds and put them to use as soon as possible. As board of directors' coaches/trainers we want to caution board members to review carefully the missions of their organizations to see if the funds are a good fit before applying. Going after funds just because they are there, without regard to whether they are a good fit for your organization, is a slippery slope. One could easily argue that the banks and homeowners who went after inappropriate funds is what got us into our current financial meltdown (but that is a topic for a different discussion). Having giving you our warning, we will act as fundraisers to alert you to some research tools about the Act and highlight a few of the new pockets of funds for nonprofits. It is important to understand that the Obama administration intends to get stimulus money out on the streets as soon as possible. Government agencies are already in a mad scramble to find all their "shovel-ready" infrastructure projects. Therefore, if your nonprofit is to take advantage of the available funds, make sure to consult a new government resource, the www.recovery.gov website, and keep checking back. The website describes the Act, links to the legislation, has maps and diagrams of job creation estimates, comments and stories. One of the FAQ on the website is: How will the Recovery Act work?
The Office of Management and Budget released the first installment of guidance to Federal agencies for carrying out programs and activities. It contains immediate steps to be taken to ensure timely and effective implementation of the Act. It instructs that grants (section 5) will be listed on www.grants.gov. Those of you who have received Federal money in the past should be familiar with www.grants.gov. These funds can be searched using key words, by agency and by category. Of course, you should review the full Act to be sure that you are aware of every provision that is appropriate for your nonprofit. While most of the funds relevant to nonprofit work will be distributed to government agencies (and then redistributed to nonprofits), which tends to favor those who already receive these funds (or are familiar with the application process), a significant chunk of money will be available through direct application to the funding sources. There are a few noteworthy items for nonprofits that include some new initiatives. One such inclusion is $50 million for a, new program, to be administered by the Department of Health & Human Services, to build the capacity of nonprofits so they can help people suffering from the economic downturn. These "nonprofit capacity building grants" are for groups with "clear and measurable goals" that are "able to evaluate the success of their program." Also there will be a huge increase in Americorps, Vista and Senior Corps volunteers. There is a legitimate issue of why there will be so many high paying construction jobs primarily in the for-profit sector (and for men) when the nonprofits get low paid interns, but nonetheless many talented young people and seniors are flocking to these programs and it would be an asset to have them working in the nonprofit community. The $3.95 billion for Job Training and Employment Services under the Workforce Investment Act includes $750 million for new "competitive grants for worker training and placement in high growth and emerging industry sectors" (with priority consideration to "green" jobs and healthcare). Art agencies will be relieved to see that $50 million given to the National Endowment for the Arts did make it into the bill (there was some controversy about this) with 60% of such funds to be available via competitive grant proposals for selected arts projects and activities (yes that does include museums, theaters, or arts centers). The Chronicle of Philanthropy prepared a chart highlighting some key provisions of interest to nonprofits (you need a subscription to access).
The National Council of Nonprofits did the best summary we have seen thus far in a 12-page report. It outlines all the major spending and tax-cut provisions in ARRA of interest to nonprofits and identifies potential grant opportunities for nonprofits. Finally, for groups that are not considering applying for stimulus money, they will still all need to hold the government accountable for how these funds are spent and to ensure that their constituencies are heard and their needs met during these trying times. P.S. Please tell us how your organization is weathering the economic storm by email. If you need help accessing information or applying for funding please contact Zimmerman Lehman at 415-986-8330 or email us.
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