Want Stimulus Money? Act Fast!

Contents
The Stimulus Package in a Nutshell
Funding Available to Nonprofits
How the Money Will Be Distributed
Other Legislation

From Tom Triplett, Principal Consultant, Fieldstone Alliance

YOU'RE PROBABLY aware of the recently enacted American Recovery and Reinvestment Act (ARRA) of 2009 which was signed into law by President Barack Obama on February 17.

But what does the Act mean for your nonprofit or grantees? This issue of Tools gives you an overview. We'll look at the purpose of the law, the funding categories that are most applicable to nonprofits, and resources for accessing the funds.

The Stimulus Package in a Nutshell
The ARRA, more commonly known as the "stimulus package," provides new spending and tax cuts totaling $787.2 billion. It's the largest single appropriation bill in U.S. history. It aims to:

Preserve and create jobs and promote economic recovery
Assist those most impacted by the recession
Provide investments needed to increase economic efficiency by spurring technological advances in science and health
Invest in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits
Atabilize state and local government budgets in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases

Stimulus monies are designated as temporary, one-time funding. Recipients are encouraged to see the money as helping them through the recession and not as an ongoing governmental assistance program. (However, many predict that Congress will find it difficult to rescind some of the assistance—particularly for programs like Medicaid and special education.) All stimulus money is scheduled to expire in fiscal year 2011.

Funding Available to Nonprofits
From our review of ARRA, we found that many of the Act’s funding components will be available to nonprofits. Major categories of eligible programs that have strong nonprofit applicability include:

Arts and humanities
Education and internet access
Employment and job training
Energy
Housing and community development
Human and social services
National service

In addition to direct funding for nonprofit organizations, ARRA contains many provisions to help individuals and families who are served by nonprofits. Examples include unemployment compensation, supplemental nutrition assistance (food stamps), and Medicaid.

How the Money Will Be Distributed
Some of the stimulus funds will be redistributed by federal agencies. Most, however, will first go to state and local government agencies for redistribution to governmental, business, and nonprofit entities in their jurisdiction.

Some money will be distributed according to existing formulas and contracts. In other cases, qualifying applicants must apply through a competitive grants process. In some instances, the receiving agency is placing limits on who can apply. For example, the National Endowment for the Arts (NEA) has reportedly said that they will only consider requests from arts organizations that already have received an NEA grant.

Act Now!
Federal legislation calls for quick distribution of the stimulus money. Unless nonprofits act quickly, these one-time funds will go to entities better able to use the resources right away. And, as mentioned earlier, all stimulus money is scheduled to expire in fiscal year 2011. To help you act fast, see the web sites listed below.

Other Legislation
Congress and some state legislatures are enacting additional laws that can benefit nonprofits and the people they serve. For instance, on March 11, President Obama signed legislation related to the normal federal budgeting process. The omnibus spending bill appropriated another $410 billion, this time directed at traditional federal spending programs. The bill also contains some 8,500 earmarks, totaling more than $7 billion, many of which will benefit individual nonprofits.

Within the next few months, Congress is also expected to pass targeted budget bills which include funding for affordable housing, energy, and natural resource protection.

In these tough times, we need to remember that Americans have always stepped up to help each other. Those of us who work in nonprofits really are doing the work that makes a difference in our communities. As the year progresses, Fieldstone Alliance will continue to publish updates and helpful information on legislation that can help you sustain your organization and your community.

Helpful Web Sites
By now, most states and even some local agencies have created their own web sites to publicize the availability of stimulus dollars. An excellent catalogue of these sites has been developed by the National Council of Nonprofits (NCN) as part of their helpful series of reports on stimulus funding.

Overall Stimulus Fund Information Sources
Recovery.gov
National Council of Nonprofits
Independent Sector

State Information Sources
Recovery.gov
Center on Budget and Policy Priorities
State Recovery Sites
State Nonprofit Associations

Grantor Agency Recovery Sites
Listing of federal agency informational websites about their participation in the Recovery Act.

Grant Opportunities Related to ARRA

Opportunities Related to Specific Interests

Fieldstone Alliance
Visit our "Opportunities in Lean Times" page for specific things you can do when faced with cutbacks. We update this page ongoingly.

Best Regards,

Tom Triplett,

April 8, 2009

About Tom Triplett
Tom specializes in helping nonprofits develop financial strategies for long-term sustainability. He helps organizations evaluate potential revenue sources that fit their unique situations, mission, and values. He also guides nonprofits to sustainable financing as major funding ends. Tom also knows about government finance and legislation having been Commissioner of three different Minnesota state agencies: Finance, Revenue, and Planning. Tom can be reached at ttriplett@fieldstonealliance.org or at 651.556.4504.

Want Stimulus Money? Act Fast!

Contents The Stimulus Package in a Nutshell Funding Available to Nonprofits How the Money Will Be Distributed Other Legislation

The Stimulus Package in a Nutshell The ARRA, more commonly known as the "stimulus package," provides new spending and tax cuts totaling $787.2 billion. It's the largest single appropriation bill in U.S. history. It aims to:

Funding Available to Nonprofits From our review of ARRA, we found that many of the Act’s funding components will be available to nonprofits. Major categories of eligible programs that have strong nonprofit applicability include:

How the Money Will Be Distributed Some of the stimulus funds will be redistributed by federal agencies. Most, however, will first go to state and local government agencies for redistribution to governmental, business, and nonprofit entities in their jurisdiction.

Contents
The Stimulus Package in a Nutshell
Funding Available to Nonprofits
How the Money Will Be Distributed
Other Legislation

The Stimulus Package in a Nutshell
The ARRA, more commonly known as the "stimulus package," provides new spending and tax cuts totaling $787.2 billion. It's the largest single appropriation bill in U.S. history. It aims to:

Funding Available to Nonprofits
From our review of ARRA, we found that many of the Act’s funding components will be available to nonprofits. Major categories of eligible programs that have strong nonprofit applicability include:

How the Money Will Be Distributed
Some of the stimulus funds will be redistributed by federal agencies. Most, however, will first go to state and local government agencies for redistribution to governmental, business, and nonprofit entities in their jurisdiction.