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Stimulus
and Nonprofits
MNN's first ARRA Newsletter- April 6, 2009
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Welcome!
It is our hope that we can provide you with some basic guidance on the
location of different pots of funding, and, in the coming weeks,
provide you with more specific details and other relevant information.

Dave Magnani,
Executive Director
617-330-1188 |
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Overview
The ARRA and
Nonprofits: Signed by President Obama on February 17,
2009, the American Recovery and Reinvestment Act of 2009 (The Economic
Stimulus Package, commonly referred to as ARRA) has two principal
goals. The
first goal is to inject significant federal funding
into our national economy to
save or create jobs that reinvigorate our economy and
to assist
those most impacted by the recession. The second goal
is to ensure that the bulk of the federal government's spending is used
to make major
investments in
transportation, environmental protection, technological advances in
science and health and other infrastructure
improvements that will provide long-term economic benefit to the
country. Governor Patrick, in outlining the goals of the
Commonwealth for its share of the responsibility for the use of these
funds, has described it as "delivering
relief now while investing in tomorrow."
While public perception of the ARRA might focus on
building roads and bridges and private sector investments, in reality,
the vast majority of the ARRA funding is ideally suited to the
enormously broad nonprofit sector for the delivery of services. It is
our goal to monitor and analyze this funding and determine how
nonprofits here in Massachusetts can best access funding. This first newsletter is designed
to provide the Massachusetts nonprofit sector with information known to
date on a broad spectrum of funding opportunities. In subsequent
newsletters we will keep you abreast of prospective funding streams for
nonprofit organizations here in Massachusetts, including relevant dates
and deadlines as they become available.
As you know by know, it is estimated that over the
course of two years, Massachusetts will receive approximately $8.7
billion in federal stimulus funds, plus an additional $5.2 billion
through tax benefits to residents of the Commonwealth. Despite the
perception that the federal government wrote each governor a large
check for each of them to distribute to their state as they saw fit,
the reality is that ARRA funding is targeted for various specific
purposes. The bulk of the funding is being distributed by relevant
federal agencies, primarily through existing programs/mechanisms. The
amounts of funding depend on various funding distribution methods,
including formula-based allocations and competitive grant processes.
The recipients of the funds include the Commonwealth, municipalities,
and private entities, depending on the program. Even those grants that
the federal government is mandated to award to a state still require
states (or state agencies) to submit an acceptable state plan or
application that meets the eligibility and compliance requirements of
the grant program. It is only upon completion and acceptance of that
plan that states will be award funding for them to distribute.
While much is known about funding opportunities, much is
still undecided, specifically with regards to the funding that will be
allocated through state agencies (Massachusetts agencies are still in
the process of applying for grants from the federal government). On the
other hand, deadlines
for RFAs from the federal government are quickly approaching.
If you plan to apply for these grants, be sure to read over the
guidelines very closely and ensure that your application addresses how
your organization can meet the specific needs of the grant as the goals
in these grants are very specific. Some provisions of ARRA limit
eligible applicants to those that were funded in 2008 for the same
program. On the other hand, there are some grant opportunities that are
not available to current grantees and consequently only open to new
applicants.The ARRA is emergency legislation and the Obama
Administration wants action quickly after funding decisions are made.
The published RFAs will state how quickly a successful applicant must
have the program up and running. Look for that deadline in the RFA.
We would also suggest that you take a number of steps
right now to better position your organization to receive funding,
including:
- Carefully reading over various grant opportunities that are
presently available that might speak to your organization's core
strengths.
- Reaching out to other organizations to collaborate on
proposals.
- Looking into the possibility of serving as a subcontractor of
services to a principal applicant. In fact, there are several programs
that require for-profit companies to include a nonprofit organization
in the application and the work plan.
- Reaching out to officials at the municipal level who will be
administering various pools of funds. Seeking out allies in the form of
elected officials at the state and federal level who can advocate for
your organization or constituency.
In outlining the present funding opportunities, we have
divided the fields into various categories depending on the core
function of the funding. Under each category we further subdivide the
access points into:
1) Municipalities/localities
2) State Agencies
3) Federal Funding that is directly given
to programs
4) Federal Funding that is administered
through grants
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Health and Human Services
Municipalities/localities
MA is receiving approximately $44.8 million for
homelessness prevention. Of this, 75% will be distributed to cities and
towns that receive Emergency Shelter Grant Program funds. This
funding will be used to help homeless individuals and families get
housing, or prevent individuals and families from becoming homeless. If
you are interested in receiving this funding, contact your local
government to find out if they are applying for this block grant, and
if so, how your organization can play a role. A significant portion of
this funding is to be used only for homelessness prevention activities
(not shelters) such as rental assistance, housing stabilization, and
housing relocation services, including security or utility deposits.
MA is receiving approximately $24.8 million for
community service block grants (CSBG) which aim to reduce poverty.
These funds are distributed at the local level, but states must apply
to receive them. There does not appear to be any specific information
yet on these funds, but for more information contact one of the 24 existing duly designated community action
centers the CSBG provides core funding. Each CAA is a private
non-profit entity operated by a tripartite board representing private
and public sectors and low-income people who reside or work in the
designated service area.
State
Agencies
On March 25th,
Governor Patrick announced that Massachusetts would be receiving $764
million in federal recovery funds for health care and safety net
services. A significant portion of this funding will be going directly
to the state's Medicaid program, increasing the federal matching
dollars from 50% to between 56.2 and 61.6%, depending on spending
patterns and unemployment levels in the state. This increased
funding will allow the state to fund the proposals that the Governor
outlined in his FY10 budget proposal, including $10 million for
community health centers and $5 million for health care providers. In
essence, the impact of this funding source is that it will allow the
state to maintain critical existing services that rely on the Medicaid
match. Once RFPs are announced for these funds, we will inform you. In
addition, depending on how much of this funding is over the Governor's
and Legislature's proposed FY10 budgets, there could be even more
Medicaid money available (up to an additional $3.1 billion over two
years). The Governor's office should soon be announcing how they
expect to spend the funds that are on top of those already included in
his H1 budget proposal. One option could to be to improve provider
rates.
Direct
Federal Grants
ARRA appropriates
$25 billion over two years to our nation's community health centers
($500 million in direct grants, $1.5 billion for capital projects and
health information technology and $500 million for primary care
workforce development). On March 27th, The U.S. Department of Health
and Human Services (HHS) announced the release of $338 million to
expand services offered by community health centers. The grants
-- titled Increased Demand for Services (IDS) grants - are being
distributed to 1,128 federally qualified health center grantees,
including 36 in Massachusetts who received approximately $8.6 million
in funding to be used over the next two years to create or retain 245
health center jobs in MA. The IDS awards are the second set of health
center grants provided through the Recovery Act.
Competitive
Grants
The first set
of health center grants was initiated on March 2nd when President Obama
announced grants worth $155 million in funding for the construction and
expansion of community health centers, including $1.3 million that was
awarded to the North Shore Community Health Center. North Shore, the
only community center in MA to receive funding in the first round, was
successful, in part, by highlighting the high level of need in the
Gloucester area. Additionally, North Shore was already on a list of
"approved but unfunded" health-center projects, having
applied in 2007. It is believed Administration officials used that list
as the basis for awarding this first round of funding.
ARRA
appropriates $11.1 billion over 2 years to support health research and
capital improvements to research facilities. The bulk of this funding
will go to support research applications that have already been
reviewed, and those submitted in fiscal 2008 and 2009 that have been
judged for merit but did not receive awards because of fiscal
constraints. Some of the money will go to projects that speed up
research in high-priority areas that are already being conducted under
existing grants. These awards will be based on themes, such as
equipment, training, and summer student jobs. An estimate of between
$100 million and $200 million will start a new program called NIH
Challenge Grants. This program will solicit applications in focus areas
determined by the institutes, and the awards will be based on peer
review and support specific scientific and health research challenges
in biomedical and behavioral research. The deadline to apply for these
funds is April 27, 2009. There are a number of different health
research grants available, including those specifically focused on
autism.
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Children and Families
State Agencies
Massachusetts is expected to receive approximately $23.9
through the child care development block grant (CCDBG). These funds are
not permitted to be used in replacement of state funding, but to
supplement it. It is not yet clear how this funding will be disbursed,
but RFPs should be announced soon by the Dept. of Early Education and
Care.
$1 billion has been allocated for regular Head Start
programs. These funds must be spent on programs that
receive federal money to provide early education to low income children
through this program.
Competitive Grants
$1.1 billion for Early Head Start will be distributed through a
competitive application process. This funding is available for
organizations that want to start a new Early Head Start Program. For
more information.
Competitive
grants for transitional housing assistance for victims of domestic
violence, dating violence, stalking or sexual assault. Grants are up to
$500,000 and the current deadline is April 8, 2009. For more
information.
YouthBuild
grants are provided to non-profit organizations to assist high-risk
youth between the ages of 16-24 to learn housing construction job
skills and to complete their high school education. The federal
economic stimulus package increased these grants by $50 million. For
more information.
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Elder Services
State Agencies
On March 21st, Governor Patrick announced more that over
$300 million was coming to Massachusetts to help boost Supplemental
Nutrition Assistance Program (SNAP) benefits and to increase
nutritional services for elders. Some of this funding will go directly
to elders through the federal Food Stamp program. However, between $1.2
million and $1.4 million will go to senior centers with nutrition
programs. Twenty-seven senior centers have already been
identified. No information is yet available on whether organizations
can still apply for these funds. We will notify you as soon as we know.
Competitive Grants
Competitive grants for the "Community Service
Employment for Older Americans program." This is only open to
current grantees in proportion to their allotment in 2008.
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Labor and Workforce Development
State Agencies
It is expected that the Executive Office of Labor and
Workforce Development will make an announcement in the coming weeks
regarding the approximately $64 million in new funding that is coming
to Massachusetts for youth activities, dislocated worker employment and
training, and adult employment and training. This funding will be
distributed to the 16 Workforce Investment Boards. If your organization
is interested in providing these services, contact your local board.
RFPs for Boston will be announced at the end of April. The money needs
to be obligated by June 30th.
Competitive Grants
ARRA contains
$750 million for competitive grants to train workers for high need
fields (priority given to "green" jobs and health
care). For more information, please visit The United States Department of Labor. No specific
information is currently available for a deadline, but it should be
shortly.
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Clean Energy and Environment
Municipalities/Localities
Cities and towns can apply for Energy Efficiency and
Conservation Block Grants to help reduce total energy consumption. In
order for a nonprofit to receive these funds, they need to speak with
their local government to find out if they are applying for a block
grant, and how the nonprofit could assist in providing services (i.e.
propose ways to increase use of renewable sources of energy) in the
community if the local government receives the grant.
Competitive Grants
Competitive
grant program for energy efficiency and conservation. The deadline for
this grant is June 25, 2009. For more information, please visit the grants.gov RFP .
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Education
State Agencies
MA is receiving $994 million through the State Fiscal
Stabilization Fund (designed principally to stave off cuts in
education). Of this, MA will use approximately $813 million on
supporting K-12 and higher education during state fiscal years 2009,
2010, and 2011. The funds must first be used to restore state
funding for K-12 and higher education up to the FY08 or FY09 level,
whichever is higher, and to maintain that level through FY11.
They can also be used to allow the phase-in of previously enacted
equity and adequacy adjustments. Any funds remaining, once the
accounts have been made whole, are to be directed into Title I
(Elementary and Secondary Education) formula grants.
MA will also receive about $181 million as a
"flexible block grant" to be spent on education, public
safety and provide for public safety and other government services,
which may include elementary, secondary, as well as higher
education. The funds may also be used for modernization,
renovation, or repair activities, consistent with state law, of
elementary, secondary, and higher education (public and private)
buildings and facilities.
It is unclear how Massachusetts nonprofits might access
this increased education funding, but we are looking into this closer
and will provide more information once it is available.
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Higher Education
State Agencies
The amount potentially available to higher education is
still extremely uncertain and is contingent upon the interpretation of
various variables. An estimate for the total MA will receive for FY09,
FY10, and FY11 is approximately $196 million, based on proportional
basis. According to the Department of Higher Education, if the Governor
determines that the education block grants are an insufficient amount
to support, in each of the fiscal year 2009, 2010 and 2011, public
elementary, secondary and higher education as the levels described...
"The governor shall allocate those funds between those sectors in
proportion to the relative shortfall in State support for the education
sectors..." Using this formula, the Dept. of Higher Education
projected $196 million. Funding received under this program "shall
be used for education and general expenditures designed to mitigate the
need to raise tuition for in-state students or for the modernization,
renovation, or repair of facilities that are primarily used for instruction,
research, or student housing, including modernization, renovation, and
repairs that are consistent with a recognized green building rating
system. These funds may not be used to increase an endowment;
maintain systems, equipment, or facilities; or for facilities primarily
used for athletic events, exhibitions, or religious activities."
Community colleges can tap into a number of resources
for funding in the economic stimulus package that we listed in previous
sections of this newsletter.
- Research grants under
"Health and Human Services" subheading
- Energy efficiency and
conservation block grants under the "Clean Energy and
Environment" subheading
- Workforce training
grants under the "Labor and Workforce Development' subheading
Additional
Grants available:
- Higher Education
Teacher Quality Enhancement Grants Program (HEA-Title II, Part A)
- Broadband Technology
Opportunities Program-Expands public computer center capacity,
including those at community colleges and public libraries. This
fund expires September 30, 2010.
- Department
of Agriculture, Agricultural Research Service-Buildings and
Facilities
- Department
of Agriculture: Rural Distance Learning, Telemedicine and
Broadband Program for the cost of broadband loans, loan
guarantees, and grants
- Community
College and Career Training Grant Program
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Housing and Community Development
Municipalities/Localities
Over $1 billion of the federal economic stimulus bill
was appropriated for Community Development Block Grants (CDBG), of
which MA is expected to receive approximately $29.4 million. Most of
the funding goes directly to cities that have received CDBG funds in
the past, although some funding is available for communities that do
not directly receive CDBG funds. These funds are used at the local
level for projects that provide housing and economic opportunities for
low and moderate-income families. In order for a nonprofit to receive
these funds, they need to speak with their local government to find out
if they are applying for a CDBG grant, and how the nonprofit could
assist in providing services (i.e. workforce training) in the community
if the local government receives the grant. For more information, contact one
of the 36 community sites in MA.
ARRA allocates
$1.5 billion to the HOME Investment Partnerships Program. These funds
will be allocated in the form of grants to states and local government
to implement local housing strategies designed to increase
homeownership and affordable housing opportunities for low- and very
low-income Americans. It is expected that state or local
government work in partnership with non-profit organizations.
Nonprofits should reach out to their local government to determine if
they have applied for this grant and offer to work with them.
The state will
also most likely be receiving a HOME grant. We will share information
with you on RFPs through the state once it is available.
There is a
competitive grant that is open to nonprofits to buy and rehabilitate
foreclosed properties and other projects to stabilize neighborhoods and
create affordable housing. The deadline for this grant is
September 1, 2009. For more information, please visit the Neighborhood Stabilization Program RFP.
Competitive
grants for transitional housing assistance for victims of domestic
violence, dating violence, stalking or sexual assault. Grants are up to
$500,000 and the current deadline is April 8, 2009. For more
information, please visit
the United States Department of Justice Recovery Information.
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Arts
State Agencies
The National Endowment for the Arts will be distributing
40% of the $50 million that was allocated to the designated 56 state
and jurisdictional arts agencies and their six authorized regional arts
organizations. The application deadline for state arts agencies and
regional arts organizations was March 13, 2009. Nonprofits should reach
out to these agencies and organizations to find out if they did apply,
and how their organization could be involved. To contact the MA agency visit the Massachusetts Cultural Council.
Competitive
Grants
60% of the $50
million will be available through competitive grants. These direct
grants will be available to nonprofit arts organizations including
local arts agencies, statewide assemblies of local arts agencies, arts
service organizations, and other arts organizations. Applicants must
have received NEA funding in the last four years to be eligible to
apply. The application deadline for nonprofit arts organizations was
April 2, 2009. It is unclear as to if there will be a second
round of grants.
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Running Your Nonprofit - Staff, Office Equipment, Etc.
Competitive Grants
Funding for nonprofits to hire students in the summer as
part of the YouthWorks program. MA plans to create an estimated
10,000 summer jobs. If you are interested in hiring a teen visit the EPA website
The Small Business Administration (SBA) makes funds available to
nonprofit community based lenders (intermediaries) which, in turn, make
loans to eligible borrowers in amounts up to a maximum of $35,000. The
average loan size is about $13,000. Applications are submitted to the
local intermediary and all credit decisions are made on the local
level. Visit the Office of Labor and Workforce Development for more information.
AmeriCorps
grants are awarded to eligible organizations to recruit, train, and
manage AmeriCorps members who address community needs. An AmeriCorps
member is an individual who is enrolled in an approved national service
position and engages in community service. Members may receive a living
allowance while serving. This funding is only available to
organizations that currently have AmeriCorps volunteers. For more
information, please visit the Corporation for National and Community Service.
Competitive grants to provide broadband access to consumers in under
served areas and trainings to schools, libraries, medical and health
care providers, community colleges, and community support organizations
to facilitate greater use of broadband by these organizations for
low-income, unemployed, aged, or other vulnerable populations. This
fund expires September 30, 2010. For more information, please visit the US Dept of Energy Recovery Website .
Below are some helpful websites:
Medicare & Healthcare
Housing,
Infrastructure, Economic Development
Unemployment Services
Environment, Energy, Education & Other:
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