Instructions for Nonprofits and Tribal Governments with Cash Capital Budget Requests
Pathways for Funding Process Steps Requirements and Submission Resources, Trainings and Support
Why is this webpage created for nonprofits and Tribal governments?
Nonprofits and Tribal governments are eligible for state capital budget general fund cash funding, subject to appropriation in an enacted capital investment bill. While nonprofits and Tribal governments are distinct entities, they are included together throughout these resources, documents, and trainings because they both have similar capital budget restrictions, requirements, and pathways to funding.
The frequency of future direct state capital budget funding for nonprofits and Tribal governments is unknown; no capital investment bill was enacted in the 2024 session. The 2020 and 2023 enacted capital budget bills included the first significant direct funding for nonprofits and Tribal governments.
What is the capital budget?
Minnesota's capital budget provides funding for infrastructure projects for state-owned capital assets and for grants to political subdivisions, nonprofits, and Tribal governments. Capital budget funding is for qualified capital projects. Examples of projects include the new construction or major renovation of a building, dam, trail, park, road, bridge, or water infrastructure facility.
Historically, major capital budget bills have been passed in even- numbered years.
How is the capital budget funded?
Major funding sources for the state’s capital budget are:
- General Obligation (GO) Bonds: The capital budget is primarily funded through issuing GO bonds. Under Minnesota’s Constitution, public ownership is required for this funding source, making state agencies and political subdivisions eligible grantees. Nonprofits and Tribal governments are not eligible for GO bonds.
- General Fund Cash: Projects financed with general fund cash do not require public ownership. Nonprofits and Tribal governments are eligible for general fund cash.
What are qualified capital projects?
Eligible costs include land acquisition, predesign, design, construction, major remodeling (if it adds to the value or life of a building and is not of a recurring nature), and other improvements or acquisitions of tangible fixed assets of a capital nature. Fixtures, furnishings, and equipment are also qualified capital expenditures only if installed upon initial construction or during major renovation to make the facility usable for the first time by the grant recipient. Questions about whether a project qualifies can be asked to MMB using the contact information listed on the 'Resources, Trainings, and Support' section of this webpage
How do nonprofits and Tribal governments request funding?
There are two pathways that nonprofits and Tribal governments can take to benefit from capital budget funding.
- “Pathway One” is submitting a direct general fund cash capital request and following the direct request steps on this webpage, for cases where the nonprofit or Tribal government would be the owner of the project and the grantee. Please review all resources on this webpage carefully.
- “Pathway Two” is working with a political subdivision, such as a county, city, or township, that submits a general obligation bond capital request, for cases where the political subdivision would be the owner of the project and the grantee. Please see the ‘Pathways for Funding’ section of this webpage.
What are the requirements to receive capital budget funds?
MMB created a comprehensive checklist of capital budget requirements for all nonprofit, Tribal government, and political subdivision requesters: Capital Budget Pathways & Requirements Checklist for Nonprofit Organizations and Tribal Governments.
Nonprofit, Tribal government, and political subdivision requesters must review this checklist before submitting a request. These requirements apply to all projects that are appropriated funds in the capital budget.