By Robert Herrera & Charlie Vincent
In its wake, the COVID-19 pandemic has impacted every Delawarean and every Delaware business, including every Delaware nonprofit. Our federal government has responded to this health crisis in part by enacting legislation, some of which is designed to free up capital quickly so that small businesses and nonprofits can survive while their business and the broader economy have effectively been quarantined.
Federal programs, such the Coronavirus Relief Fund (CRF), are well-intentioned government programs designed to help get money into the hands of nonprofits and small businesses that have been impacted by the virus. In Delaware, nonprofits and small businesses collectively serve all Delawareans, and their clients and customers are the people powering our local economy.
The question everyone should be asking is how fast can our state and local governments get this money into the hands of those poised to make the biggest impact for the most people in Delaware?
Getting money to the right places
One Delaware-based nonprofit solution already exists, has a proven methodology, and is ready to address this challenge. In mid-March 2020, before the virus and social distancing were part of the vernacular, Delaware nonprofit sector leaders came together behind a unified and statewide COVID-19 fundraising effort. Within days, they designed, developed, and began implementing what is now the most expedited statewide grant funding program in the country.
This program is producing results and illustrates how fast and nimble the private sector can innovate under these pressing circumstances. The COVID-19 Strategic Fund (housed under The Delaware Community Foundation) has a simple process that resets weekly. Eligible Delaware nonprofits (which is to say, almost all of them) can complete an online application in 10-15 minutes after gathering the required information. Applications then undergo a three-tiered review process, which consists initially of a 2-3 person peer review, followed by a full 20+ person committee review, followed by a smaller executive committee review.
A nonprofit platform is already in place
Ultimately, and within five days of the application process, a funding decision is made and money is disbursed. In the first four weeks of this program, 221 unique nonprofit organizations from all sectors submitted 315 separate funding requests seeking more than $11 million in urgent funding needs. A total of 49 grants have been awarded already infusing more than $1.2 million into our nonprofits making a measurable impact in our community. These are funds deposited into bank accounts, not plans or promises to help.
Delaware’s foundations, corporations, and individuals have contributed more than $2 million to this effort and will continue to expedite delivery of funds to our nonprofits for as long as the funds last. We all realize it is not enough.
The state has an opportunity to leverage this fund to accelerate its commitment to deploy a portion of its CRF funding to nonprofit organizations working on the frontlines in Delaware. The existing program could be used to begin distributing State funds to needy nonprofit organizations within one week of funding by the State, and with complete transparency.
Small businesses could get help
This existing operational process of the COVID-19 Strategic Fund can also be leveraged to support State funding for our small business sector. Local examples of this type of effort include the EnCourage Lancaster program and the Lancaster City Small Business Emergency Fund which uses a similar application and review concept as the COVID-19 Strategic Fund, and is rapidly granting or loaning money to individuals and small business owners, including solo practitioners, individual artists, and gig economy workers.
We have the platform in place to help launch and scale a funding program for the Delaware business sector. Such an effort could be led by our local leaders, such as the Delaware Prosperity Partnership and the Delaware State Chamber of Commerce. Their counterparts in the Delaware nonprofit sector are willing to help and already have a proven model to build from, which can be piloted and proven in short course.
The time for our state and local governments to make these types of investments is now. Certainly the COVID-19 Strategic Fund has proven its viability, and for that program—or a companion small business one—the only thing really holding it back is money. The CRF represents a significant source of funds that can be used exactly for these purposes, and strong consideration—and some dollar amount with seven or eight zeroes after it—should be given in support of these efforts.
Charlie Vincent is executive director of Spur Impact Association, a 501(c)(3) nonprofit whose mission is to be the premier hub connecting young professionals and inspiring them to get involved and make an impact in their career and community.
Robert Herrera is founder and managing partner of the Mill, the largest co-working company in Delaware with locations in downtown and north Wilmington. Robert currently serves as a board member of the Delaware Prosperity Partnership.
