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John's Public Policy Blog
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No Cuts to Grant-In-Aid; Held Level with 2015

Posted By John Baker, Wednesday, July 1, 2015

The Joint Finance Committee (JFC) held funding at the 2015 level, something that seemed impossible and unimaginable just a few weeks ago.  Your efforts in mobilizing your colleagues, boards and volunteers made this possible!

Just prior to the last DEFAC report (economic forecast) on June 15th, I was hearing some extreme thoughts that GIA cuts could exceed 20%, then with a better DEFAC report the talk around Dover became 10%.  After your continued calling and writing, I began hearing a steady 5% last week.  But you pulled out all the stops and the good people of JFC found this “one-time” $2,380,000 from a bank-related settlement to restore a 5% cut that they had made in their draft.  This restored GIA in support of all the great work you do day-in-and-day-out.

Additional details that came out of last night’s session include further requirements down the road as JFC continues to evolve the GIA Application and Process.  They will be meeting again this fall, as they have for the past two years.  The topic this year will be “audits.”  JFC instituted an audit requirement last year and they’ll be considering this more fully this year, recognizing the cost of this. They will consider requiring more cost-effective mechanisms for smaller nonprofits that don’t already have audits required under other funding sources.

The major addition for this year will be “Random In-Depth Assessments” of GIA recipients by the Controller General’s office.  Along with this, the epilogue language of the GIA Bill requires that GIA funds be kept in a separate account from other organizational funds.  More details on this will come to you in your GIA award letter.  The Random Assessment is an effort to increase accountability, while trying to be more accommodating and flexible with the Audit Requirements.

The GIA Application will be online for the fall of 2017, so not this November, but next November.

Congratulations for all your efforts and please take a moment to share this good news with your colleagues.  Please also share a hearty “Thank You” from the DANA Team. We couldn’t have done it without all of you!

As I’m sure you saw, we were vocal over the last weeks about what needed to be done. Here’s one example of the many initiatives we used to raise the profile of the nonprofit sector and the awareness of the public and legislators with regards to our concerns.

The mobilizing and engagement that we achieved this year will need to be redoubled for next year and we’ll need to coordinate our efforts and communications like never before to continue to build our relationships and the public awareness of the consistent value we deliver to Delawareans.  We must continue to diversify our funding sources, and de-emphasize GIA.  For the next several years I expect that government funding sources will continue to constrict.  More broadly, we need to work to change the government’s conversations, from ones of starvation, to ones of responsibility to all the citizens of Delaware and the Nation.  We at DANA are looking forward to working with you to build these initiatives and have these conversations.  Just one of these successful conversations, over time, has resulted in the OMB Uniform Guidance on Indirect Costs that helps to break the “Starvation Cycle” among nonprofits.  We provided a webinar last fall on this topic and will be hosting a training and webinars on “Indirect Costs” this fall.  Together we can work on Delaware-specific themes, and more broadly we can work on sector-wide matters.

Click here for the link to the full GIA Bill, which was just released this morning.

As always you can contact me with any questions or comments at jbaker@delawarenonprofit.org or 302.777.5500

- John

Tags:  budget  Delaware  Grant-in-Aid  Joint Finance Committee  nonprofits  om 

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