H.R. 314: Empowering Nonprofits Act

The bill titled the Empowering Nonprofits Act proposes a reduction of cost-sharing requirements for certain grants provided to eligible nonprofit organizations. Here’s how it works:

Key Provisions

• Cost-sharing Reduction: The heads of executive agencies are required to reduce the cost-sharing requirements for grants given directly to eligible nonprofit organizations by 25%. This reduction would be effective starting from the date the bill is enacted and would continue for a period of five years.

Definitions

• Eligible Nonprofit Organization: This refers to a nonprofit organization that is located in a state where more than 20% of individuals live below the federal poverty line. These organizations must be recognized under section 501(c)(3) of the Internal Revenue Code, meaning they are tax-exempt and operate for charitable purposes.
• Executive Agency: This refers to any governmental agency that is part of the executive branch of the U.S. government, as defined by specific regulations.
• State: This term encompasses all U.S. states, the District of Columbia, commonwealths, territories, possessions, and federally recognized tribes.

Impact

The intent of this legislation is to support nonprofit organizations that serve economically challenged communities, enabling them to receive more funding assistance from federal grants. By lowering the cost-sharing requirements, eligible nonprofits may find it easier to access financial resources necessary to carry out their missions.

Relevant Companies

None found