State Grants Working Group

In the late summer and fall of 2023 the Minnesota Council of Nonprofits (MCN) convened three times a cross-sector working group aspiring to equitable state grantmaking for all, by focusing on the lived experiences and expertise of rural-based, small, and BIPOC-led and –serving nonprofits. This working group was a unique opportunity to join individuals who share a goal of strengthening Minnesota communities through mission-driven work but often have few opportunities to work directly together. 

Working Group Membership

The working group was comprised of 35 members, including 15 staff engaged in disbursement of state grant funds, two legislators, and 20 nonprofit leaders from across the state. Nonprofits reporting the most significant barriers (small, rural, and BIPOC-led and -serving nonprofits) represented the majority of the nonprofit members (full roster below).  
 

Rationale

Each year, Minnesota’s state government invests hundreds of millions of dollars in the nonprofit sector. Government relies on the expertise and community knowledge of charitable organizations to ensure all Minnesotans have basic needs met and opportunities to thrive. 

From conversations with nonprofit leaders, research done in partnership with The Humphrey School of Public Affairs, and research led by Minnesota Management and Budget, we know that a number of eligible nonprofits currently face significant barriers in accessing state funding. Rural-based, small, and/or BIPOC-serving nonprofits tend to receive disproportionately less state funding than larger, established, and/or Twin Cities-based nonprofits. We also know that state agencies face their own obstacles such as limited funding for grants administration, lack of technology to support grants management, and more. 

Related Resources: 

• Working Group on State Grants to Nonprofits: Context-Setting Materials (September 2023)
• American Indian Community Letter to State Officials (November 2019)

Response

Following the 2023 legislative session with an unprecedented $17 billion surplus, the state is investing in its capacity to expand access to state funding for eligible groups, including specific work to address inequities. MCN is also working to ensure that nonprofit expertise and lived experience are incorporated into policies and practices related to state grantmaking.  
 

Working Group Goals and Outputs

MCN sought a broad range of perspectives and experiences to engage in a productive conversation in order to:

• Strengthened and continuing to deepen relationships across nonprofit and government agencies based on shared desired outcome especially in part due to the decentralized nature of state grantmaking in Minnesota, most of the relationships formed between staff in different agencies were new. 
• Surfaced issues and opportunities facing nonprofit organizations, state agencies, and legislators regarding state grantmaking processes and policies; 
• Ensure the experiences and priorities of nonprofit organizations are influencing state-led reform efforts regarding grants management, particularly those who have been marginalized by current practices (rural, BIPOC-led and/or -serving groups, and/or small/under-resourced orgs). 
• Co-discovered salient insights and recommendations for best practices and reforms: 2023 State Grants Workgroup Insights Summary
• Continuing to learn and share information about the state Office of Grants Management and its policies, to inspire ideas for needed reforms; 
• Affirm the need from participants and other impacted community members that MCN continue its advocacy for grants reform, including developing specific recommendations for legislation or OGM policies with community input; 
• Building trust and relationships with state agency officials who will need to lead the reform work, providing guidance and support to various agencies seeking to implement equitable practices in grantmaking 
  • Eg. In 2023 and 2024, MCN has met with and presented to the Office of Grants Management, Minnesota Management and Budget, and the Center for Health Equity within the Minnesota Department of Health 
• Continue to educate community, expand circles of influence, and lift up need for government grant reform  
  • Eg. Created trainings and educational material for major MCN conferences and nonprofit professional development opportunities: MCN’s 2024 fundraising conference (Main stage state of the sector address and “State Grants 101” breakout session) 
• Recognize, learn from, and contribute to other government grant reform efforts that are underway nationally and across other state associations of nonprofits;  
  • Eg. Created and presented a paper “Strategies Toward Equitable Government Grantmaking through Cross-Sector Partnerships” at 2024 Urban Institute Symposium
  • Eg. Will be co-presenting at 2024 ARNOVA Annual Conference, which received the President’s Award Honorable Mention 
  • Eg. Collecting and sharing information on specific policies that have passed or been proposed in other states 
  • Eg. Co-lead the National Council Nonprofit’s cohort on government grant reform advocacy efforts 

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Additional Reading:

• 2023 State Grants Workgroup Insights Summary 
• Strategies Toward Equitable Government Grantmaking through Cross-Sector Partnerships (presented at Urban Institute)
• Working Group on State Grants to Nonprofits: Context-Setting Materials (September 2023) 
• American Indian Community Letter to State Officials (November 2019) 

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