42 U.S.C. § 12653s — Nonprofit capacity building

(a) Definitions: (1) An "intermediary nonprofit grantee" is a group that gets a grant under subsection (b). (2) An "intermediary nonprofit organization" is an experienced, capable nonprofit that already has real experience helping small and mid-size nonprofits grow their skills or capacity. (3) "Nonprofit" means (A) a group recognized under section 501(c)(3) of the tax code and free from taxes under section 501(a), or (B) a group described in section 170(c)(1) or (2) of the tax code. (4) "State" means each of the 50 states and the District of Columbia. (b) Grants: The Corporation must create a Nonprofit Capacity Building Program. It gives grants to intermediary nonprofit organizations so they can act as intermediary nonprofit grantees. This money pays the federal share of the cost of teaching small and mid-size nonprofits -- especially ones facing money troubles -- skills like best practices, financial planning, grantwriting, and following tax law. Each grantee must also put in its own non-federal share, as described in subsection (f). (c) Amount: Whenever possible, the Corporation should give one of these grants to a nonprofit in every state. Each grant must be at least $200,000. (d) Application: To get a grant, a nonprofit must apply to the Corporation, following whatever timing, format, and information the Corporation requires. The application must show that the nonprofit has already lined up enough resources to meet the matching-fund rule in subsection (f). (e) Preference and considerations: (1) The Corporation favors nonprofits working in areas where other nonprofits face serious money troubles. (2) When deciding on a grant, the Corporation looks at (A) how many small and mid-size nonprofits the grant will help; (B) how much impact the grant will have across a state compared to its size; and (C) how good the training will be, including the qualifications of its staff and its track record helping small and mid-size nonprofits. (f) Federal share: (1) The federal government pays 50 percent of the cost. (2)(A) The other 50 percent -- the "non-federal share" -- must be paid in cash. (B) Third-party contributions: (i) Except as noted below, the grantee must raise this non-federal share from third parties, such as charitable foundations, corporate giving programs, corporations, individual donors, or state and local government agencies. (ii) Exception -- if the grantee is a private foundation, a donor advised fund, or certain other tax-law-defined organizations, it must pay the non-federal share from its own money instead. (iii) The grantee cannot let donations from any one third party drop below what that same donor gave the year before -- this keeps private funding steady. (g) Reservation: Congress set aside $5,000,000 for this program in each of fiscal years 2010 through 2014.