March 2, 2009 — Massachusetts nonprofits that are considering applying for stimulus fund grants under the recently passed federal American Recovery and Reinvestment Act of 2009 are advised to move quickly, according to the National Council of Nonprofits.

“The need to get the stimulus funds out and put to use has expedited the grant making and therefore grant application process. That’s why the business and government sectors are moving swiftly,” the Council, a network of state and regional nonprofit associations, advised in a recently issued special report.

The first deadline for federal agency action already occurred just two days after President Obama signed the law, and several other deadlines already are in place. They include:

• February 19: Federal agencies to begin reporting their formula block grant awards
• March 3: Federal agencies to begin reporting their use of funds May 3: Federal agencies to begin reporting on their allocations for entitlement awards
• May 20: Federal agencies to begin reporting on their competitive grants & contracts
• July 15: Recipients of Federal funding to begin reporting on their use of funds

To keep current, nonprofits that are considering applying for a grant are urged to regularly check the federal government’s new website – at www.recovery.gov.

Rapid Deadlines

The rapid deadlines for awarding grants mean that nonprofits interested in applying for grants need to be preparing now to make sure they are ready to submit solid application packages that comply with the anticipated requirements, according to the report.

“Nonprofit leaders need to step forward now to claim a seat at the policy table to make sure that community voices are truly heard and that decisions about what gets funded – and what doesn’t – are made wisely for the common good,” the Council advised. “Nonprofits can and should assert our historic role as champions of the common good by monitoring government operations to ensure accountability to the people.”

Other tips offered by the Council include the following:

Stress the Official Purpose – Stress the official purposes so you can convince the grant making authorities you will help them achieve the official purposes of this historic legislation. And if you will be asserting your proper role as champion of the common good, then constantly remind decision makers, the media, and others about these official purposes.

Read the Entire Act – Before investing too much time applying for a stimulus-funded grant, make sure there are not special provisions that will prevent your nonprofit from receiving a grant. For instance, if you seek a grant for infrastructure purposes, you will need to show that you can actually put the funds to use within a short time frame. Also, another provision of the Act prohibits any funds from being used for any “aquarium, zoo, golf course, or swimming pool,” so if even if your nonprofit could create new jobs working on such projects, you will not qualify for funding.

Don’t Be Shy – Nonprofits serve the broader community – as champions of the common good, incubators of innovation, laboratories of leadership, and weavers of community. As core and vital American institutions meeting community needs, nonprofits should not be shy about stepping forward if you truly can use the funds as the Act intends.

Avoid Mission Drift – Individual nonprofits can and should legitimately seek grants to help local communities recover. But that does not mean that every individual nonprofit should apply for grants. Think carefully before applying. Nonprofit leaders should review their mission statements, review their community needs, and review the stimulus bill to see if there is alignment. If not, then pass and find other ways to help the economy recover, including stepping forward to ensure that wise decisions are made so the stimulus funds really “stimulate” the broader economy. Avoid mission drift: don’t chase after the money. Keep true to your mission and core values.