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Propel Nonprofits requests $4 million to continue statewide nonprofit capacity-building program
Summary
Senate File 16-24 would appropriate $4 million over the FY26-27 biennium to Propel Nonprofits to fund capacity building, financial systems and board development for community-based nonprofits; proponents highlighted prior rounds and measurable outcomes from 2017–2024.
Senate File 16-24, presented Feb. 24 by Senator Putnam, would appropriate $4,000,000 over the FY26-27 biennium to Propel Nonprofits to continue a nonprofit capacity-building program that provides training, consulting, capital access and accounting assistance to community-based nonprofits across Minnesota.
Background and testimony: Sponsor Senator Putnam and Propel’s chief advancement officer, Garrett Backus, described the program’s history: prior appropriations included $1,000,000 in 2017–2019, $500,000 in 2019–2021, $2,000,000 in 2022–2023 and $4,000,000 from the general fund in FY24-25. Backus told the committee Propel serves more than 600 nonprofits annually, and the program has helped organizations strengthen financial procedures, accept state contracts and create paid positions.
Committee concerns: Committee fiscal staff said the current request is for $4,000,000 over the FY26-27 biennium from the general fund. During questioning, committee members raised concerns about permitting up to 10% of those funds for Propel administrative costs; sponsors and the chair acknowledged sensitivity around administrative allocations and said that accountability and reporting requirements would govern state contracts.
Disposition: The bill was laid on the table for possible inclusion in the jobs omnibus. Committee staff and sponsor indicated further fiscal detail and language clarifications would be provided for the omnibus process.
