Nonprofit Infrastructure Grant Program FAQ

Organizational Eligibility

1. Nonprofit organizations with current 501(c)(3) status that are:
2. Minnesota based with primary activities serving Minnesota communities.
3. Small, culturally specific nonprofit 501(c)3 organizations that primarily serve historically underserved cultural communities including organizations where the majority of management or board of directors’ positions are held by these members of these cultural communities and the programs are designed to serve this cultural community.
4. Organizations with annual budgets less than $1,000,000.

Q: What percentage of the board or staff must represent diverse communities?

A: The leader of your organization or the majority (more than 50 percent) of your board must represent these cultural communities.

Q: Are fiscally sponsored projects eligible to apply this grant program?

A: No: Based on the legislative eligibility criteria of the program; only organizations meeting these 4 criteria are eligible to apply.

1. Nonprofit organizations with current 501(c)(3) status that are:
2. Minnesota based with primary activities serving Minnesota communities.
3. Small, culturally specific nonprofit 501(c)3 organizations that primarily serve historically underserved cultural communities including organizations where the majority of management or board of directors’ positions are held by these members of these cultural communities and the programs are designed to serve this cultural community.
4. Organizations with annual budgets less than $1,000,000.

Q: We are a network vs. an organization, but we are a 501(c)(3). Our impact is measured in large part by relationships (we don’t provide direct services). Do you see this as an applicable funding opportunity?

A: Yes: As long as you meet these 4 criteria, you are eligible to apply:

1. Nonprofit organizations with current 501(c)(3) status that are:
2. Minnesota based with primary activities serving Minnesota communities.
3. Small, culturally specific nonprofit 501(c)3 organizations that primarily serve historically underserved cultural communities including organizations where the majority of management or board of directors’ positions are held by these members of these cultural communities and the programs are designed to serve this cultural community.
4. Organizations with annual budgets less than $1,000,000.

Q: What if you are licensed to operate in multiple states, including Minnesota, but do not have a program in Minnesota?

A: The organization must be a Minnesota-based nonprofit with primary activities serving Minnesota communities.

Q: If we received a different grant through Propel this year are we eligible to apply for this program as well?

A: Yes: In the application there is a question that asks if you are currently engaged in other capacity building programs. If so, you are asked to describe what you are prioritizing with that project and how participating in NIGP would further your organization’s impact.

Q: Our expenses are over $1,000,000 due to federal passthrough grants. Are we ineligible?

A: No: Based on the legislative description of the program, your organization would not be eligible if your expenses are over $1,000,000.

Q: Our operating expenses are well below $1,000,000, but our overall revenue is higher than that due to the projects we implement on behalf of other partners. Can we still qualify?

A: Yes: Your organization qualifies if your expenses are under $1,000,000.

Eligible Grant Activities:

Organizational Infrastructure Improvement

Grants under this activity area can be used to improve organizational infrastructure. Eligible activities under this category include hiring staff or consultants to assist with: developing database management systems; developing financial systems; and building other administrative systems needed to increase the organization’s ability to access and sustain new funding sources and deliver on the organization’s mission. Other eligible expenses include investments in technology to improve internal infrastructure.

Organizational Workforce Development

Grants under this activity area can be used to increase workforce capacity that builds the organization’s infrastructure. Eligible activities include hiring culturally competent staff or consultants to expand programming capacity; providing training and skills development; and implementing other methods of increasing staff capacity.

Organizational Partnerships

Grants under this activity area can be used to create partnerships with other organizations to increase capacity. Eligible activities include the creation and expansion of partnerships with existing organizations that possess specialized expertise; and the creation of partnerships to increase the capacity of the grantee organizations to improve services for the community.

This is not an exhaustive list of activities that can be funded by this grant program. Propel Nonprofits will work with grant applicants to determine how and if their proposed activities fit within the eligible activities listed above.

Q: Could this include hiring a fundraising expert?

A: Yes: Under the Organizational Infrastructure Improvement activity, eligible activities include hiring staff or consultants to help provide access and sustain new funding sources. The goal here is to build your fund development infrastructure.

Q: Is this grant only to hire new staff/consultants, or can this be used for training current staff as well?  Would training of current staff members, such as a development person, fall under “organizational workforce development”?

A: Yes: this grant can be used for training/retaining current staff as well as hiring/expending workforce. Under the Organizational Workforce Development activity, providing training and skills development to increase workforce capacity is included as an eligible activity.

Q: We have a part-time accountant. Could we use this funding to move that position to full-time or to hire someone else to help with accounting?

A: Yes: First, make the case for why you need this increase in staff time for your organization’s capacity; second, give some detail on what you are thinking about in terms of building on this change if you want it to continue after the grant period.

Q: Would the infrastructure improvement support purchase of equipment that has useful life of > 5 years with the grant?

A: Yes: Equipment purchases, such as computers and laptops, are an eligible expense. We ask that the expense be made in support of a broader goal. It’s not likely we’d fund a large, say $30,000, investment in computer/IT upgrades, unless you make a really good case on how that supports the delivery of your mission and impact in the community.

Q: Could this grant also cover the rebranding of our corporate identity?

A: Yes: If you are able to make a case on how that builds your capacity to support the delivery of your mission and impact in the community.

Q: Would strategic planning proposals be eligible for funding through this grant?

A: Yes: In describing the project, you would need to explain how the strategic plan would increase the capacity of your organizations to help position it for greater impact in your community.

Q: We are a small nonprofit (budget under $1,000,000) that has the opportunity to strategically align with a much bigger nonprofit (budget over $1,000,000). Would asking for funding to develop that collaboration/potential merger fit within the criteria of the grant? There is potential to greatly increase our capacity to serve, and it appears to be a highly synergistic alignment.

A: Yes: Grants under the Organizational Partnerships activity area can be used to create partnerships with other organizations to increase capacity. Eligible activities include the creation and expansion of partnerships with existing organizations that possess specialized expertise; and the creation of partnerships to increase the capacity of the grantee organizations to improve services for the community.

Q: Are the organizations limited to one grant option/one eligible grant activity priority?

A: No: You can select multiple eligible grant activity areas, but it may be hard to be able to do more than one. You could also include multiple activities within one eligible grant activity area to make up your project. For example, you could choose the Infrastructure Improvement area, and have 2-4 key activities you’ll undertake over the next 12 – 18 months.

Q: Regarding the reimbursement: Is that how this whole grant will work or how certain grant options work? If we are hiring someone or using funds to pay staff to run programs, do we need to already have the funds to pay, and then we submit documentation for reimbursement?

A: Yes: Grants are paid out on a monthly reimbursement schedule. There are no advances – it is a reimbursement system. This tool is to align with how state grants are administered. Once grantees are selected, Propel Nonprofits can work with the grantees to provide technical assistance to develop a cash flow to work with the reimbursement system. All grantees will be required to submit periodic financial and program reports.

Q: How fast is your reimbursement process? When can we expect to get our reimbursement?

A: Our goal is to provide the reimbursement within 1 – 2 weeks of the reimbursement request deadline.

Application Process:

After reviewing the full request for proposals, complete the online application. Applications are due Thursday, October 26, 2023 at 5 p.m. Central Standard Time. No extension allowed.

Q: If people have issues and questions about the portal where they submit their grant application, where do those questions go?

A: Send those questions to: nigp@propelnonprofits.org

Q: How do I schedule a technical assistance session?

A: Visit our website, select the date, and click on the link to schedule a 30-minute session on October 9 or October 18.

Q: Can I save my application but not submit it yet?

A: Yes: You can save your progress and return to complete the application.

Q: Does the grant application need to be completed before the technical assistance call?

A: No: But we do ask that you review the RFP and come with questions.

Q: What do we submit if our budget fluctuates based upon what funds we actually received this year? For example, we were awarded a grant in the summer which was not known about when the budget was prepared. Do we submit the most up-to-date organization budget?

A: Submit your current year, board-approved organizational budget.

Q: This is the first year we will submit our 990. What do we provide instead?

Q: Is it compulsory to submit the 990?

Q: What if we are a newly established 501(c)(3) this year and don’t have a 990 or audit yet?

Q: If our organization only files a 990-N, are we eligible to apply for the grant?

A: For organizations that have a 990, 990-EZ, or 990-N, we request that you submit those. If you do not have a 990, submit your organization’s year-end income and expense report and year-end balance sheet.

Q: How many applications are you anticipating? Can we see past grantees applications?

A: We received about 150 applications for NIGP 2 years ago. We are expecting at least that many and probably more this year. We do not have permission to share other organizations’ applications, so we are unable to make those available to you. However, we are happy to help you with your application during our TA Days on October 9 and 18. Visit our website and schedule a 30 minute TA session.

Q: Do we need to plan to use the entire amount we ask for or a minimum amount? Is there a penalty if, for whatever reason, we don’t use the amount we ask for?

A: You should plan to use the entire amount you ask for. We allocate all the dollars from the State of Minnesota to the nonprofit organizations in the grant program. If some organizations overestimate their needs to fund their activity, then dollars that could have gone to support other participants in the program would be left unused.