II 111th CONGRESS 1st Session S. 609 IN THE SENATE OF THE UNITED STATES March 17, 2009 Mr. Baucus introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To amend the National and Community Service Act of 1990 to establish a Nonprofit Capacity Building Program.

1.

Short title

This Act may be cited as the Nonprofit Capacity Building Act of 2009.

2.

Nonprofit Capacity Building Program

Title III of the National and Community Service Act of 1990 (42 U.S.C. 12501 et seq.) is amended— (1)by striking the title heading and inserting the following: ; and(2)by adding at the end the following: B

Nonprofit Capacity Building Program

311.

Program

(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 training and technical assistance 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 an entity or organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code. (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 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)

Periods and amount

The Corporation shall make such a grant for a period of 3 years, unless the Corporation, in the Corporation's discretion, provides for a different period, for an initial or renewed grant. 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 the Internal Revenue Code of 1986), a donor advised fund (as defined in section 4966(d)(2) of such Code), an organization which is described in section 4966(d)(4)(A)(i) of such Code, or an organization which is described in section 4966(d)(4)(B) of such Code, 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.

.

3.

Conforming amendment

Section 501(b) of the National and Community Service Act of 1990 (42 U.S.C. 12681(b)) is amended— (1)by striking There are and inserting the following: (1)

Points of Light Foundation

There are ; (2)by striking title III and inserting subtitle A of title III; and (3)by adding at the end the following: (2)

Nonprofit capacity building program

There are authorized to be appropriated to carry out subtitle B of title III $25,000,000 for fiscal year 2010 and such sums as may be necessary for each of the 2 succeeding fiscal years. .