January 15, 2025

Dear Nonprofit leader:

I am not only the Senator for Gaithersburg and Rockville– I am equally proud to be known as the “Senator for the Nonprofit Sector.”

This will be a tough year for the Maryland General Assembly, as we are facing a $2.7 billion deficit. We also anticipate that you will face challenges as a result of the Trump/Musk Administration– likely a “perfect storm” of program cuts and increased community need.

I have three bills to address priorities for our sector and facilitate the invaluable work you do.

Green and Renewable Energy for Nonprofit Organizations, SB105/HB145, will help nonprofits become part of the solution to our Climate Crisis. Businesses and individuals can take advantage of tax credits to convert to green energy, but not tax-exempt groups like yours. G.R.E.E.N. creates a revolving loan fund for nonprofits to switch to renewable energy, in the form of a loan (for up to 90% of the cost!) that you will repay over time out of your energy savings. This legislation has passed the Senate unanimously three times, and it was so compelling it inspired a federal program championed by our own Rep. Jamie Raskin. I am hopeful that the new funding source will finally get it through the House; the Senate hearing was this morning.

Raise your voice in support of this program. My colleague Del. Adrian Boafo is sponsoring this bill in the House. Will you join Maryland Nonprofits and add your name to show your support ahead of the hearing by Monday at 4:00pm? Let’s help this legislation finally become law!

In 2018, we passed a 10% minimum overhead payment requirement for State grants and contracts; this ensures that you are reimbursed for indirect costs like rent, accounting, and staff training. SB127 is a common-sense solution that would tie Maryland’s indirect cost reimbursement to the Federal rate, which was raised to 15% last year. (Did you know that in 2023, Maryland nonprofits were awarded more than 4,800 contracts and grants totaling $1.7 billion? We rely on you!)

Making your way through the State bureaucracy can be difficult and confusing. I am proposing hiring a Nonprofit Navigator in the Department of Commerce. This person would be a resource to nonprofit organizations, similar to the existing office for small businesses. Your new single point of contact will help you learn about grant opportunities; answer your questions; resolve bottlenecks and administrative issues with your contracts; and represent your needs. Although adding this position has a modest cost, which will make it challenging in this fiscal environment, it is simply common sense to help you and your colleagues access the funds the State already allocates to the sector to address Maryland’s priorities.

All the best,

Cheryl

Cheryl C. Kagan

State Senator, District 17

(Gaithersburg & Rockville)

Vice Chair, Education, Energy, & the Environment Committee

www.CherylKagan.org

NOTE: My Annapolis phone number is now 410/841-3134.

PPS: Fun fact: that there are more than 40,000 nonprofits in Maryland, with budgets totaling nearly $82 trillion? You employ 13% of our State’s workforce– kudos to you!

PPPS: If you’re looking for a fun night out, I’ll be punning again at the DC Improv. You can join me if you get tickets before they’re sold out!)