---
kind: "section"
citation: "42 U.S.C. § 12653s"
title: "42"
title_heading: "The Public Health and Welfare"
number: "12653s"
heading: "Nonprofit capacity building"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/12653s"
units:
  - "Chapter 129 — National and Community Service"
  - "Subchapter I — National and Community Service State Grant Program"
  - "Division H — Investment for Quality and Innovation"
  - "Part V — Nonprofit Capacity Building Program"
---

# §12653s. Nonprofit capacity building

- (a) **Definitions—** In this section:
  - (1) **Intermediary nonprofit grantee—** The term “intermediary [nonprofit](/usc/42/300s–3.md?p=3) grantee” means an intermediary [nonprofit](/usc/42/300s–3.md?p=3) organization that receives a grant under [subsection (b)](#b).
  - (2) **Intermediary nonprofit organization—** The term “intermediary [nonprofit](/usc/42/300s–3.md?p=3) organization” means an experienced and capable [nonprofit](/usc/42/300s–3.md?p=3) entity with meaningful prior experience in providing organizational development assistance, or capacity building assistance, focused on small and midsize [nonprofit](/usc/42/300s–3.md?p=3) organizations.
  - (3) **Nonprofit—** The term “[nonprofit](/usc/42/300s–3.md?p=3)”, used with respect to an entity or organization, means—
    - (A) an entity or organization described in [section 501(c)(3) of title 26](/usc/26/501.md?p=c-3) and exempt from taxation under [section 501(a)](/usc/42/501.md) of such title; and
    - (B) an entity or organization described in paragraph (1) or (2) of section 170(c) of such title.
  - (4) **State—** The term “[State](/usc/42/12522.md?p=1)” means each of the several [States](/usc/42/12522.md?p=1), and the District of Columbia.
- (b) **Grants—** The [Corporation](/usc/42/2297h.md?p=2) shall establish a [Nonprofit](/usc/42/300s–3.md?p=3) Capacity Building [Program](/usc/42/12626.md?p=8) to make grants to intermediary [nonprofit](/usc/42/300s–3.md?p=3) organizations to serve as intermediary [nonprofit](/usc/42/300s–3.md?p=3) grantees. The [Corporation](/usc/42/2297h.md?p=2) shall make the grants to enable the intermediary [nonprofit](/usc/42/300s–3.md?p=3) grantees to pay for the Federal share of the cost of delivering organizational development assistance, including training on best [practices](/usc/42/17061.md?p=19), financial planning, grantwriting, and compliance with the applicable tax laws, for small and midsize [nonprofit](/usc/42/300s–3.md?p=3) organizations, especially those [nonprofit](/usc/42/300s–3.md?p=3) organizations facing resource hardship challenges. Each of the grantees shall match the grant funds by providing a non-Federal share as described in [subsection (f)](#f).
- (c) **Amount—** To the extent practicable, the [Corporation](/usc/42/2297h.md?p=2) shall make such a grant to an intermediary [nonprofit](/usc/42/300s–3.md?p=3) organization in each [State](/usc/42/12522.md?p=1), and shall make such grant in an amount of not less than $200,000.
- (d) **Application—** To be eligible to receive a grant under this section, an intermediary [nonprofit](/usc/42/300s–3.md?p=3) organization shall submit an application to the [Corporation](/usc/42/2297h.md?p=2) at such time, in such manner, and containing such information as the [Corporation](/usc/42/2297h.md?p=2) may require. The intermediary [nonprofit](/usc/42/300s–3.md?p=3) organization shall submit in the application information demonstrating that the organization has secured sufficient resources to meet the requirements of [subsection (f)](#f).
- (e) **Preference and considerations—**
  - (1) **Preference—** In making such grants, the [Corporation](/usc/42/2297h.md?p=2) shall give preference to intermediary [nonprofit](/usc/42/300s–3.md?p=3) organizations seeking to become intermediary [nonprofit](/usc/42/300s–3.md?p=3) grantees in areas where [nonprofit](/usc/42/300s–3.md?p=3) organizations face significant resource hardship challenges.
  - (2) **Considerations—** In determining whether to make a grant the [Corporation](/usc/42/2297h.md?p=2) shall consider—
    - (A) the number of small and midsize [nonprofit](/usc/42/300s–3.md?p=3) organizations that will be served by the grant;
    - (B) the degree to which the activities proposed to be provided through the grant will assist a wide number of [nonprofit](/usc/42/300s–3.md?p=3) organizations within a [State](/usc/42/12522.md?p=1), relative to the proposed amount of the grant; and
    - (C) the quality of the organizational development assistance to be delivered by the intermediary [nonprofit](/usc/42/300s–3.md?p=3) grantee, including the qualifications of its [administrators](/usc/42/4005.md?p=1) and representatives, and its record in providing services to small and midsize [nonprofit](/usc/42/300s–3.md?p=3) organizations.
- (f) **Federal share—**
  - (1) **In general—** The Federal share of the cost as referenced in [subsection (b)](#b) shall be 50 percent.
  - (2) **Non-Federal share—**
    - (A) **In general—** The non-Federal share of the cost as referenced in [subsection (b)](#b) shall be 50 percent and shall be provided in cash.
    - (B) **Third party contributions—**
      - (i) **In general—** Except as provided in [clause (ii)](#f-2-B-ii), an intermediary [nonprofit](/usc/42/300s–3.md?p=3) grantee shall provide the non-Federal share of the cost through contributions from third parties. The third parties may include charitable grantmaking entities and grantmaking vehicles within existing organizations, entities of corporate philanthropy, [corporations](/usc/42/2297h.md?p=2), individual donors, and regional, [State](/usc/42/12522.md?p=1), or local government [agencies](/usc/42/8262.md?p=1), or other non-Federal sources.
      - (ii) **Exception—** If the intermediary [nonprofit](/usc/42/300s–3.md?p=3) grantee is a private foundation (as defined in [section 509(a) of title 26](/usc/26/509.md?p=a)), a donor advised fund (as defined in [section 4966(d)(2)](/usc/26/4966.md?p=d-2) of such title), an organization which is described in [section 4966(d)(4)(A)(i)](/usc/26/4966.md?p=d-4-A-i) of such title, or an organization which is described in [section 4966(d)(4)(B)](/usc/26/4966.md?p=d-4-B) of such title, the grantee shall provide the non-Federal share from within that grantee’s own funds.
      - (iii) **Maintenance of effort, prior year third-party funding levels—** For purposes of maintaining private sector support levels for the activities specified by this [program](/usc/42/12626.md?p=8), a non-Federal share that includes donations by third parties shall be composed in a way that does not decrease prior levels of funding from the same third parties granted to the [nonprofit](/usc/42/300s–3.md?p=3) intermediary grantee in the preceding year.
- (g) **Reservation—** Of the amount authorized to provide financial assistance under this division, there shall be made available to carry out this section $5,000,000 for each of fiscal years 2010 through 2014.

## Source credit

(Pub. L. 101–610, title I, § 198S, as added Pub. L. 111–13, title I, § 1809, Apr. 21, 2009, 123 Stat. 1575.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Oct. 1, 2009, see section 6101(a) of Pub. L. 111–13, set out as an Effective Date of 2009 Amendment note under section 4950 of this title.