The State of Community Economic Development Funding in 2024

Emerging Trends in Community/Economic Development Funding The Community/Economic Development sector is experiencing a significant shift in funding priorities, driven by the need for innovative and sustainable economic growth initiatives. As a result, the Non-Profit Organizations funder is prioritizing projects that drive growth, innovation, and long-term viability within the nonprofit sector in Texas. One of the key trends in Community/Economic Development is the increased focus on community development block grants (CDBG). The CDBG program provides funding for a wide range of community development activities, including infrastructure development, economic development, and social services. To be eligible for CDBG funding, applicants must demonstrate that their projects meet the program's national objectives, including benefiting low- and moderate-income individuals. Another trend is the growing importance of partnership development grants. These grants support collaborations between nonprofit organizations, local governments, and private sector entities to drive economic growth and community development. By fostering partnerships, applicants can leverage resources, expertise, and funding to achieve greater impact. The USDA Rural Development Grant is another key trend in Community/Economic Development. This grant program supports rural development projects, including economic development, infrastructure development, and social services. To be eligible, applicants must demonstrate that their projects meet the program's requirements, including benefiting rural areas. ## Operational Challenges and Capacity Requirements Despite the availability of funding, Community/Economic Development projects face significant operational challenges. One of the key delivery challenges is navigating the complex regulatory environment, including compliance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200). This regulation sets forth the rules and guidelines for federal grant recipients, including nonprofit organizations. Another operational challenge is building the necessary capacity to deliver successful projects. This includes having the necessary staffing, resources, and infrastructure to manage and implement projects. To address this challenge, applicants should prioritize capacity-building activities, including training and technical assistance. ## Risk Management and Compliance Community/Economic Development projects are subject to a range of risks, including eligibility barriers and compliance traps. One of the key risks is failing to comply with the CDBG program's requirements, including the need to benefit low- and moderate-income individuals. To mitigate this risk, applicants should ensure that their projects meet the program's national objectives and that they have the necessary systems in place to track and report on project outcomes. Another risk is the potential for grant blocks to disrupt funding. Grant blocks occur when a funder, such as the Non-Profit Organizations, restricts or eliminates funding for a particular program or activity. To mitigate this risk, applicants should diversify their funding sources and develop contingency plans to address potential funding disruptions. ## Measuring Success To measure the success of Community/Economic Development projects, the Non-Profit Organizations funder requires applicants to track and report on a range of outcomes, including economic development outcomes, community development outcomes, and social services outcomes. Applicants should prioritize the development of robust evaluation plans, including the use of Key Performance Indicators (KPIs) to measure project success. Some of the KPIs that applicants may use to measure project success include the number of jobs created, the amount of economic investment generated, and the number of individuals served. By tracking and reporting on these outcomes, applicants can demonstrate the impact of their projects and make the case for continued funding. Q: What types of projects are eligible for CDBG funding? A: CDBG funding is available for a wide range of community development activities, including infrastructure development, economic development, and social services. Q: How can I ensure that my project complies with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200)? A: To ensure compliance, applicants should review the regulation and consult with a grants management expert to ensure that their project meets the necessary requirements. Q: What are the key performance indicators (KPIs) that I should use to measure the success of my Community/Economic Development project? A: Some of the KPIs that applicants may use to measure project success include the number of jobs created, the amount of economic investment generated, and the number of individuals served.