Communities Lead, Communities Thrive 2022 Proposed Legislative Grant Program

We asked for $35 million of federal ARPA funding to provide infrastructure grants for smaller nonprofits who are providing culturally appropriate and relevant services and resources to families and communities who have historically been underrepresented, underfunded, under-resourced, and continue to struggle with pandemic recovery. These nonprofit organizations have had to pivot to serve the increasing needs of their communities as a response to the COVID-19 pandemic. This includes creating new services and transitioning services online, collecting new data for impact and outcomes, retraining and repurposing staff, and shifting and expanding their organizational focus.

Communities in combination with these smaller nonprofits hold the expertise necessary to identify and generate community-led solutions to address their specific needs, but they lack the funding to create the infrastructure needed to implement those solutions. Using innovative and community-based approaches and flexible funding mechanisms to design, mobilize, and implement solutions allows for better coordination, not only in public health emergencies, but also in everyday programs, policies, and practices. 

House Bill 22-1356 passed in the 2022 legistlative session. 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.

Check out the legislation, House Bill 1356, here.

The Nonprofit Infrastructure Grant Program funding opportunity is open to organizations who are able to pursue innovation and build institutional resilience. Funding would be focused on infrastructure and capacity building of nonprofits that focus on programming for and have board representation from defined historically marginalized and under-resourced communities.

Infrastructure and capacity-building is defined as providing a nonprofit organization the opportunity to develop competencies, strategies, systems, and structures in order to improve organizational effectiveness to grow impact and strengthen the community they serve.

Find out more about the NPI Grant Program here.

Good examples of infrastructure building and capacity could  include: 

Data technology needs including for evaluation purposes

Professional development for staff and board members

Strategic planning and organizational development for capacity building, fundraising and other services

Communications

Existing Program expansion, development or evaluation 

What is excluded in capacity building?

Capital improvement

Real estate or land acquisition 

Payment of debt

Advocacy/lobbying 

Organizing

Endowments or reserves

Interested non-profits or a collaboration of groups or smaller nonprofits with a single nonprofit or fiscal agent lead will be required to meet all the criteria below.

Track record of providing effective, culturally appropriate and relevant programs and services to communities who have historically been under-represented, underserved, under-resourced in Colorado and delivering effective programs and services equitably for CO residents

Have an organizational (not operational) budget of $150K to $2 million annually

Restricted vs unrestricted funds detailed

Have 25% of the organization’s budget come from a source other than the funding an organization might receive as a grantee of the program

Be focused in key areas of identified community need such as health equity, workforce development, community economic development, early childhood care, education support, housing, and food justice

Have community-led solutions created by the community they are meant to serve; and

If a nonprofit, be in good standing with the Colorado Secretary of State.

Federal funds are required to be appropriated to a state department. Under our bill, The Department of Local Affairs, Division of Local Government would be the agency to receive the funding through the state budget. The Division will develop the timeline and application process for the grant and will work with nonprofits who will serve as Regional Area Providers (RAPS) to accept, evaluate and award grants and assist grantees with compliance reporting.

RAPs must meet certain criteria in order to be eligible:

Has a track record of providing grants to small community-based nonprofit organizations 

States a specific focus on defined historically marginalized and under-resourced communities or focuses at least 51% of its programming on engaging and supporting defined historically marginalized and under-resourced communities; and

At least 51% of the board of directors or staff of the nonprofit consists of individuals from defined historically marginalized and under-resourced communities.

At this time it is unknown which specific nonprofits will be funded. That decision will be determined by:

The final dollar amount secured for this legislation

The final passage of the legislation

The scoring rubric created

Elements of the application will be added outside of the legislation such as:

Lived experience as the genesis to the creation of the organization

Community-led solutions created by the community they are meant to serve

Authentic community engagement to inform the organization about the services provided

Community leadership involvement in decision making for the organization

Clearly defined mission and vision

Commitment of time and resources to build capacity with a clearly stated need, readiness, and commitment to the project

Organizational leadership is people of color or LGBT, defined as:

– Executive director is a person of color or LGBT

– Senior management and staff is 51% people of color or LGBTQ+

– Board of directors is 51% people of color or LGBTQ+

– Leadership based on the communities they serve as measured by people of color and LGBT

The timing of the distribution will be based on several factors:

Funding if the bill passes is not available for the program until July 1, 2022

The division must have time to create the application and scoring rubric (usually 60-90 days) and determine which nonprofits will act as RAPs.

Applicants must be given adequate time to gather the information needed to apply (usually 30-60 days)

Applications must be reviewed and scored (30 days-60 days)

Grants could be awarded to selected nonprofits by January of 2023

This proposal prioritizes equity by focusing grants dollars to organizations that serve 66% or more disproportionately impacted communities. The distribution of the program will be done through RAPS who will have a regional focus. This ensures smaller, community-focused organizations are able to build capacity. The intention is to prioritize organizations run by people with lived experience and with board members and staff representing the communities they serve in the RFP process. Funds will be awarded to organizations with community led solutions created by the community they serve.