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Amendment to Grant-in-Aid Reform Bill Could Impact Nonprofits (**UPDATED**)

Posted: by Melissa Hopkins

As the General Assembly session winds down, DANA is monitoring and tracking legislation that impacts the nonprofit sector, and we have identified a proposal that could significantly impact Delaware nonprofits that contract with the State of Delaware and rely on Grant-in-Aid funding. 

An amendment was recently filed to House Bill 190 that would significantly and fundamentally change the purpose and structure of the original bill. However, after conversations with DANA and other nonprofit members, the amendment sponsor has agreed to strike the amendment and file a new amendment that removes the language in question. 

HB 190 creates a bipartisan GIA Subcommittee to strengthen and improve the GIA application and review process. The Subcommittee would review new GIA applications, evaluate organizational eligibility and program effectiveness, and improve transparency and accountability in funding decisions. 

SA 1 would have dramatically changed eligibility requirements for organizations and programs to receive a grant-in-aid in a manner that would have created significant and unintended complications for nonprofits, many of which provide essential services to Delawareans. 

Under HB 190, organizations must demonstrate that at least half of their operations are supported by revenue sources other than GIA funding. SA 1 expands this 50% requirement to include virtually all forms of state funding, including contracts and appropriations. 

This change could have unfairly disadvantaged nonprofits that partner with the State to deliver critical services.  

Thanks to the quick work and advocacy from our members and partners, we confirmed with the sponsor that they will strike the amendment, removing this potential problem for Delaware nonprofits. We’re grateful to both our members and the sponsor for working together in the best interests of Delawareans. 

The end of legislative session is often a fast-paced dash to finish line on June 30, so please stay tuned to our social media channels (Facebook, LinkedIn) for regular updates. DANA is in Legislative Hall advocating for all of you.