42 U.S.C. § 12655 — Nonprofit capacity building

**(a) Definitions** In this section: (1) **Intermediary nonprofit grantee** — The term “intermediary nonprofit grantee” means an intermediary nonprofit organization that receives a grant under subsection (b). (2) **Intermediary nonprofit organization** — The term “intermediary nonprofit organization” means an experienced and capable nonprofit entity with meaningful prior experience in providing organizational development assistance, or capacity building assistance, focused on small and midsize nonprofit organizations. (3) **Nonprofit** — The term “nonprofit”, used with respect to an entity or organization, means— (A) an entity or organization described in [section 501(c)(3) of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section501/c/3&num=0&edition=prelim) and exempt from taxation under section 501(a) of such title; and (B) an entity or organization described in paragraph (1) or (2) of section 170(c) of such title. (4) **State** — The term “State” means each of the several States, and the District of Columbia. **(b) Grants** The Corporation shall establish a Nonprofit Capacity Building Program to make grants to intermediary nonprofit organizations to serve as intermediary nonprofit grantees. The Corporation shall make the grants to enable the intermediary nonprofit grantees to pay for the Federal share of the cost of delivering organizational development assistance, including training on best practices, financial planning, grantwriting, and compliance with the applicable tax laws, for small and midsize nonprofit organizations, especially those nonprofit organizations facing resource hardship challenges. Each of the grantees shall match the grant funds by providing a non-Federal share as described in subsection (f). **(c) Amount** To the extent practicable, the Corporation shall make such a grant to an intermediary nonprofit organization in each State, and shall make such grant in an amount of not less than $200,000. **(d) Application** To be eligible to receive a grant under this section, an intermediary nonprofit organization shall submit an application to the Corporation at such time, in such manner, and containing such information as the Corporation may require. The intermediary nonprofit organization shall submit in the application information demonstrating that the organization has secured sufficient resources to meet the requirements of subsection (f). **(e) Preference and considerations** (1) **Preference** — In making such grants, the Corporation shall give preference to intermediary nonprofit organizations seeking to become intermediary nonprofit grantees in areas where nonprofit organizations face significant resource hardship challenges. (2) **Considerations** — In determining whether to make a grant the Corporation shall consider— (A) the number of small and midsize nonprofit organizations that will be served by the grant; (B) the degree to which the activities proposed to be provided through the grant will assist a wide number of nonprofit organizations within a State, relative to the proposed amount of the grant; and (C) the quality of the organizational development assistance to be delivered by the intermediary nonprofit grantee, including the qualifications of its administrators and representatives, and its record in providing services to small and midsize nonprofit organizations. **(f) Federal share** (1) **In general** — The Federal share of the cost as referenced in subsection (b) shall be 50 percent. (2) **Non-Federal share** (A) *In general* — The non-Federal share of the cost as referenced in subsection (b) shall be 50 percent and shall be provided in cash. (B) *Third party contributions* (i) *In general* — Except as provided in clause (ii), an intermediary nonprofit grantee shall provide the non-Federal share of the cost through contributions from third parties. The third parties may include charitable grantmaking entities and grantmaking vehicles within existing organizations, entities of corporate philanthropy, corporations, individual donors, and regional, State, or local government agencies, or other non-Federal sources. (ii) *Exception* — If the intermediary nonprofit grantee is a private foundation (as defined in [section 509(a) of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section509/a&num=0&edition=prelim)), a donor advised fund (as defined in section 4966(d)(2) of such title), an organization which is described in section 4966(d)(4)(A)(i) of such title, or an organization which is described in section 4966(d)(4)(B) of such title, the grantee shall provide the non-Federal share from within that grantee’s own funds. (iii) *Maintenance of effort, prior year third-party funding levels* — For purposes of maintaining private sector support levels for the activities specified by this program, a non-Federal share that includes donations by third parties shall be composed in a way that does not decrease prior levels of funding from the same third parties granted to the nonprofit intermediary grantee in the preceding year. **(g) Reservation** Of the amount authorized to provide financial assistance under this division, there shall be made available to carry out this section $5,000,000 for each of fiscal years 2010 through 2014.