Advancing Equity and Efficiency in State Grant Processes

This legislative session, MCF is collaborating with our nonprofit policy partners to advocate for more equitable and efficient state grant processes that promote program integrity.  

This important work is focused on informing and advancing evidence-based policies that promote equity and efficiency while balancing accountability and the flexibility nonprofits need to serve their communities. Together, we are connecting with policymakers to ensure solutions allow the charitable sector to have the greatest impact on Minnesotans and their well-being.

Examining Narratives and Promoting Program Integrity 

MCF is a key partner in a coalition of grant reform advocates, led by the Minnesota Council of Nonprofits (MCN), dedicated to informing and reframing the conversation around state grant funding. Together, we are working to:

• Combat misleading narratives regarding fraud in the nonprofit sector.
• Promote program integrity by providing state leaders with actionable recommendations that protect public funds without hindering community impact.

A Nuanced Approach to Anti-Fraud Measures

While we support efforts to increase accountability, MCF and the coalition advocate against certain "one-size-fits-all" anti-fraud proposals — specifically the blanket prohibition of legislatively named grants, or direct appropriations to nonprofits. The evidence indicates that although direct appropriations have sometimes raised conflict-of-interest concerns, they are not a source of fraud and can be an important tool in certain situations.

Rather than strict mandates, the coalition proposes a decision-support framework to provide clearer guidance on when to use direct appropriations, competitive processes, intermediaries, or agency-led implementation.

Progress in the House

We recently joined MCN and other advocacy partners at a Minnesota House hearing in support of a bipartisan bill that aims to streamline the grantseeking process by:

• Requiring a standardized executive summary cover sheet for all state RFP grant opportunities.
• Reducing the administrative burden on nonprofits and state agencies by providing immediate clarity on grant requirements.

The bill successfully passed out of the House committee, marking a significant step toward more efficient and accessible state grantmaking.  

Opportunities to Weigh In

The state’s Office of Grants Management (OGM) sets state grantmaking policies across all state agencies. OGM plans to revise three of the policies and is asking for input via several surveys from interested parties by May 8. For MCF members that serve as state grant recipients and state grant intermediary partners, we encourage you to share your experience and feedback through the surveys.

The OGM policies under review relate to how grant payments are made to state grantees (08-08), reporting requirements (08-09), and monitoring (08-10).  

Visit MCN's website for more information and to access any or all of the surveys. You can also contribute to a listening session on May 4, focused on how the state could improve policies related to state grant payments (08-08).  

At MCF, we remain committed to informing equitable and accountable state grantmaking practices that support organizations meeting the needs of Minnesotans across the state.