§ 12653k. Funds
(a)
Findings
Congress finds the following:
(1)
Social entrepreneurs and other nonprofit community organizations are developing innovative and effective solutions to national and local challenges.
(2)
Increased public and private investment in replicating and expanding proven effective solutions, and supporting new solutions, developed by social entrepreneurs and other nonprofit community organizations could allow those entrepreneurs and organizations to replicate and expand proven initiatives, and support new initiatives, in communities.
(b)
Purposes
The purposes of this section are—
(1)
to recognize and increase the impact of social entrepreneurs and other nonprofit community organizations in tackling national and local challenges;
(2)
to stimulate the development of a network of Social Innovation Funds that will increase private and public investment in nonprofit community organizations that are effectively addressing national and local challenges to allow such organizations to replicate and expand proven initiatives or support new initiatives;
(c)
Definitions
In this section:
(1)
Community organization
The term “community organization” means a nonprofit organization that carries out innovative, effective initiatives to address community challenges.
(d)
Program
From the amounts appropriated to carry out this section that are not reserved under subsections (l) and (m), the Corporation shall establish a Social Innovation Funds grant program to make grants on a competitive basis to eligible entities for Social Innovation Funds.
(e)
Periods; amounts
The Corporation shall make such grants for periods of 5 years, and may renew the grants for additional periods of 5 years, in amounts of not less than $1,000,000 and not more than $10,000,000 per year.
(f)
Eligibility
To be eligible to receive a grant under subsection (d), an entity shall—
(3)
propose to focus on improving measurable outcomes relating to—
(4)
have an evidence-based decisionmaking strategy, including—
(A)
use of evidence produced by prior rigorous evaluations of program effectiveness including, where available, well-implemented randomized controlled trials; and
(g)
Application
To be eligible to receive a grant under subsection (d) for national leveraging capital, an eligible entity shall submit an application to the Corporation at such time, in such manner, and containing such information as the Corporation may specify, including, at a minimum—
(1)
an assurance that the eligible entity will—
(A)
use the funds received through that capital in order to make subgrants to community organizations that will use the funds to replicate or expand proven initiatives, or support new initiatives, in low-income communities;
(2)
an assurance that the eligible entity will not make any subgrants to the parent organizations of the eligible entity, a subsidiary organization of the parent organization, or, if the eligible entity applied for funds under this section as a partnership, any member of the partnership;
(3)
an identification of, as appropriate—
(4)
(A)
information identifying the issue areas in which the eligible entity will work to improve measurable outcomes;
(5)
information describing the process by which the eligible entity selected, or will select, community organizations to receive the subgrants, to ensure that the community organizations—
(A)
are institutions—
(B)
articulate measurable outcomes for the use of the subgrant funds that are connected to the measurable outcomes for the eligible entity;
(E)
can sustain the initiatives after the subgrant period concludes through reliable public revenues, earned income, or private sector funding;
(6)
information about the eligible entity, including its experience managing collaborative initiatives, or assessing applicants for grants and evaluating the performance of grant recipients for outcome-focused initiatives, and any other relevant information;
(7)
a commitment to meet the requirements of subsection (i) and a plan for meeting the requirements, including information on any funding that the eligible entity has secured to provide the matching funds required under that subsection;
(8)
a description of the eligible entity’s plan for providing technical assistance and support, other than financial support, to the community organizations that will increase the ability of the community organizations to achieve their measurable outcomes;
(9)
information on the commitment, institutional capacity, and expertise of the eligible entity concerning—
(h)
Selection criteria
In selecting eligible entities to receive grants under subsection (d), the Corporation shall—
(2)
select eligible entities on the basis of the quality of their selection process, as described in subsection (g)(5), the capacity of the eligible entities to manage Social Innovation Funds, and the potential of the eligible entities to sustain the Funds after the conclusion of the grant period;
(i)
Matching funds for grants
(1)
In general
The Corporation may not make a grant to an eligible entity under subsection (d) for a Social Innovation Fund unless the entity agrees that, with respect to the cost described in subsection (d) for that Fund, the entity will make available matching funds in an amount equal to not less than $1 for every $1 of funds provided under the grant.
(2)
Additional requirements
(A)
Type and sources
The eligible entity shall provide the matching funds in cash. The eligible entity shall provide the matching funds from State, local, or private sources, which may include State or local agencies, businesses, private philanthropic organizations, or individuals.
(B)
Eligible entities including State Commissions or local government offices
(i)
In general
In a case in which a State Commission, a local government office, or both entities are a part of the eligible entity, the State involved, the local government involved, or both entities, respectively, shall contribute not less than 30 percent and not more than 50 percent of the matching funds.
(j)
Subgrants
(1)
Subgrants authorized
An eligible entity receiving a grant under subsection (d) is authorized to use the funds made available through the grant to award, on a competitive basis, subgrants to expand or replicate proven initiatives, or support new initiatives with a substantial likelihood of success, to—
(2)
Periods; amounts
The eligible entity shall make such subgrants for periods of not less than 3 and not more than 5 years, and may renew the subgrants for such periods, in amounts of not less than $100,000 per year.
(3)
Applications
To be eligible to receive a subgrant from an eligible entity under this section, including receiving a payment for that subgrant each year, a community organization shall submit an application to an eligible entity that serves the specific local geographical area, or geographical areas, that the community organization proposes to serve, at such time, in such manner, and containing such information as the eligible entity may require, including—
(A)
a description of the initiative the community organization carries out and plans to replicate or expand, or of the new initiative the community organization intends to support, using funds received from the eligible entity, and how the initiative relates to the issue areas in which the eligible entity has committed to work in the eligible entity’s application, in accordance with subsection (g)(4)(A);
(B)
data on the measurable outcomes the community organization has improved, and information on the measurable outcomes the community organization seeks to improve by replicating or expanding a proven initiative or supporting a new initiative, which shall be among the measurable outcomes that the eligible entity identified in the eligible entity’s application, in accordance with subsection (g)(4)(C);
(C)
an identification of the community in which the community organization proposes to carry out an initiative, which shall be within a local geographical area described in the eligible entity’s application in accordance with subparagraph (A) or (B) of subsection (g)(3), as applicable;
(D)
a description of the evidence-based decisionmaking strategies the community organization uses to improve the measurable outcomes, including—
(E)
a description of how the community organization uses data to analyze and improve its initiatives;
(F)
specific evidence of how the community organization will meet the requirements for providing matching funds specified in subsection (k);
(k)
Matching funds for subgrants
(1)
In general
An eligible entity may not make a subgrant to a community organization under this section for an initiative described in subsection (j)(3)(A) unless the organization agrees that, with respect to the cost of carrying out that initiative, the organization will make available, on an annual basis, matching funds in an amount equal to not less than $1 for every $1 of funds provided under the subgrant. If the community organization fails to make such matching funds available for a fiscal year, the eligible entity shall not make payments for the remaining fiscal years of the subgrant period, notwithstanding any other provision of this part.
(l)
Direct support
(1)
Program authorized
The Corporation may use not more than 10 percent of the funds appropriated for this section to award grants to community organizations serving low-income communities or addressing a specific issue area in geographical areas that have the highest need in that issue area, to enable such community organizations to replicate or expand proven initiatives or support new initiatives.
(2)
Terms and conditions
A grant awarded under this subsection shall be subject to the same terms and conditions as a subgrant awarded under subsection (j).
(3)
Application; matching funds
Paragraphs (2) and (3) of subsection (j) and subsection (k) shall apply to a community organization receiving or applying for a grant under this subsection in the same manner as such subsections apply to a community organization receiving or applying for a subgrant under subsection (j), except that references to a subgrant shall mean a grant and references to an eligible entity shall mean the Corporation.
(m)
Research and evaluation
(1)
In general
The Corporation may reserve not more than 5 percent of the funds appropriated for this section for a fiscal year to support, directly or through contract with an independent entity, research and evaluation activities to evaluate the eligible entities and community organizations receiving grants under subsections (d) and (l) and the initiatives supported by the grants.
(2)
Research and evaluation activities
(A)
Research and reports
(i)
In general
The entity carrying out this subsection shall collect data and conduct or support research with respect to the eligible entities and community organizations receiving grants under subsections (d) and (l), and the initiatives supported by such eligible entities and community organizations, to determine the success of the program carried out under this section in replicating, expanding, and supporting initiatives, including—
(B)
Technical assistance
The Corporation shall, directly or through contract, provide technical assistance to the eligible entities and community organizations that receive grants under subsections (d) and (l).