Nonprofit Capacity-Building Grants

To Qualify for a Nonprofit Capacity-Building Grant, an Organization Must …

• be a 501(c)(3) nonprofit (fiscal sponsorships are not eligible)
• have an annual operating budget of $1 million or less.
• operate within the Initiative Foundation’s service region, which includes: Benton, Cass, Chisago, Crow Wing, Isanti, Kanabec, Mille Lacs, Morrison, Pine, Sherburne, Stearns, Todd, Wadena, and Wright counties and portions of the Native nations of the Leech Lake and Mille Lacs Bands of Ojibwe
• focus on providing services in one of the following areas:
  • basic needs (food, housing)
  • economic programs (job training, career education, life skills, apprenticeships)
  • support for individuals impacted by crime or discrimination
  • non-clinical mental health and substance abuse services.

Additional Considerations

• Nonprofits that have engaged with the Nonprofit Academy training within the last six months may receive priority consideration.
• The Initiative Foundation strives to achieve geographic equity in grantmaking across the service region.

Capacity-Building Definition

• board training and governance improvement efforts
• exploration of alliances and mergers
• fund development planning (at the 10,000-foot level; beyond hiring an external fundraiser)
• marketing and communications planning
• process improvement efforts (Lean, Six Sigma and similar structures)
• staff training (beyond the basics/what is legally or ethically required for basic operations)
• strategic planning
• succession planning.

Ineligible Uses of Funds

Capacity-building grants cannot be used for:

• hiring a grant writer or fundraiser
• adding program staff
• supporting ongoing programs
• general technology improvements or website upgrades
• operating expenses (e.g., rent, utilities).

Ineligible organizations and activities

Capacity-building grants do not fund organizations primarily focused on:

• arts, culture, theater, music
• environmental preservation
• healthcare
• historical preservation
• camps.

Capacity-building grants cannot fund:

• expenses incurred before the grant is awarded
• capital expenses (e.g., land acquisition, building purchases or renovations, transportation infrastructure, construction, maintenance)
• operating expenses (e.g., rent, utilities, insurance)
• programs or projects that do not directly benefit residents in the Initiative Foundation’s service area
• replace or substitute for government funding
• religious activities
• lobbying or campaigning for a candidate, issue or referendum
• development or purchase of school curriculum or support for school athletic programs
• expanding programs or services by organizations not already operating within the Initiative Foundation’s service area
• single-day events or sponsorships
• fiscally sponsored groups
• technology, hardware and software
• out-of-state travel.