On April 16, 2025, the Communities Lead Communities Thrive Coalition, alongside leading philanthropic and nonprofit organizations, submitted a letter to HB 25-1101 bill sponsors urging to remove data collection provisions from the bill in order to bring down the bill’s fiscal note.

The Honorable Jennifer Bacon,
Assistant Majority Leader

The Honorable Lorena Garcia

The Honorable Mike Weissman

Re: Urging Passage of HB 25-1101 Without Data Collection Provision to Reduce Barriers for Nonprofits

Dear Assistant Majority Leader Bacon, Representative Garcia, and Senator Weissman,

On behalf of the undersigned organizations, we express our support for HB 25-1101 and urge you to do everything you can to ensure its passage in this legislative session, including removing the data collection provisions that are driving a fiscal note and threatening the final passage of the bill.

We recognize that now, more than ever, it is critical to minimize barriers that prevent community-based nonprofits from accessing state grant dollars. This bill represents an essential step toward making state funding more equitable and accessible to the organizations that work tirelessly to serve Colorado’s most vulnerable communities.

As you know, the state’s current reimbursement-based grant distribution process places a disproportionate burden on small and historically underfunded nonprofits, often limiting their ability to participate in state grant programs. Requiring reimbursement for services provided by nonprofits on behalf of the state creates cash-flow barriers that many organizations cannot overcome and often results in their inability to pursue state grants. HB 25-1101 will help level the playing field for nonprofits, specifically those led by and serving historically excluded communities.

While we acknowledge the importance of transparency and the need to understand inequities in the state’s grant award process, we encourage you to reconsider the data collection provision in this bill due to its fiscal note at a time when the state government is facing over $1 billion in cuts. Retaining this provision will likely mean the bill will fail in the Appropriations Committee, forcing nonprofits to continue to front expenses on behalf of the state. Furthermore, given the dynamic context of the federal government, there is growing concern among community-based organizations about the potential for data collected by the state to be used in ways that could negatively impact nonprofit organizations and the communities they serve. Removing the data collection provision would help advance this legislation during this session while allowing it to be revisited in subsequent sessions.

As strong supporters of this legislation, we recognize the importance of ensuring its viability and passage. Securing immediate financial relief for nonprofits through upfront grant disbursements should remain the bill’s top priority.

We deeply appreciate your leadership in sponsoring HB 25-1101, and we stand ready to work alongside you to make this critical reform a reality. Thank you for your continued dedication to supporting Colorado’s nonprofit sector and ensuring that state resources are distributed in a fair and accessible manner.

Sincerely,

Communities Lead Communities Thrive Coalition
Colorado Nonprofit Association
Rose Community Foundation
The Denver Foundation