State Funding: New Rules?

There ARE still federal grant funds available for savvy nonprofits.

Where did they go?

Federal funds didn’t just disappear, though it kind of seems that way. The WAY that federal funds are reaching nonprofits - the funding mechanism - has changed. Federal funding for nonprofits is being pushed to the State-level to decide on how and where funds are to be used. The table of decision-makers has moved from Washington DC to your State Capitol. Which means your nonprofit needs a seat at this new table.

The rules have changed.

They told me we can’t get funding anymore because the rules have changed. I said, “OK then let’s learn the new rules.”

This is the kind of Executive Director who I love working with. A resilient leader knows that the rules will change. But she also knows that one can learn the new rules and choose to play by those rules instead. Is this a fair or equitable or just situation? I think you already know the answer to that question. The real question for nonprofits is: how do we keep funding sustainability until the rules change again?

Know your state’s priorities and requirements.

Since your state’s elected officials and departments now have more control over what federal dollars are being spent on, it’s vital to know their funding priorities. This does not mean you need to change your nonprofit’s priorities. Chances are that there is some alignment between the programs you’re already running and the state’s priorities. You just need to be able to articulate how your programs benefit the people you are serving and how the impact of those services aligns with the goals of the state’s administration.

The first requirement of gaining access to state funding is being able to articulate how your vision aligns with their priorities. The second requirement is being able to show that you have a robust way of tracking metrics and data. This is a non-negotiable for receiving federal dollars. They want to know what you spent the money on, how it helped who you said it was going to help, and what obstacles you may have come across. The third requirement is to know where to find funding announcements and if there is a certain portal you need to use to apply for those funds. For example, Ohio posts most of their grant opportunities on the Ohio Grants Partnership site.

Lastly, not a requirement but a best practice, is to meet with your state-elected officials. Your state’s elected officials are there to represent the residents of their district. The same residents that your nonprofit serves. They can be great allies and advocates. Meet with them, invite them to tour your facilities and see your team in action. Remember, we are living in a visual world. The difference between seeing your team serving residents and reading about how your team serves residents can be the difference between a $300,000 grant or… nothing.