Pay Justice

Pay
Justice

Join the fight for funding that works for our workforce, our organizations, and our communities.

Sign up for updates about the MN Council of Nonprofits State Grants & Contracts Coalition

Pay Justice: Pay Justice is about investing equitably in the people and organizations doing the hard, vital work of building community wellbeing. Nonprofits are powerful tools for our communities to access the resources to build healthy, abundant, connected, equitable communities. The status quo has left nonprofits trapped in grants and contracts where they can't negotiate the terms and that pay for poverty-level wages for the essential work of building community wellbeing. Systemic government and philanthropic funder underinvestment in our nonprofit workforce and our state's nonprofit infrastructure limits our human and economic potential as a sector and as a state.

Pay Justice is about nonprofits and funders coming together to build an honest, mutual understanding of the full resources it takes to drive the outcomes we all want for our communities. Our relationship with funders is not just a business agreement – it’s about the change we’re trying to make together. MACC is partnering with the Minnesota Council of Nonprofits to build an inclusive movement that uses our collective negotiating power to push funders to do better and combat the inequities within the system.

Background on the MN Nonprofit State Grants & Contracts Coalition:

Background on the state of nonprofit grants and contracts in Minnesota and why this coalition is taking action.

> Minnesota state government relies on nonprofits to deliver services and programs that strengthen communities around the state.

Nonprofit organizations are a critical partner for the state of Minnesota in strengthening our state's workforce, strengthening our state’s economic infrastructure, and strengthening the well-being of our communities. Many state investments in local communities through programs and services would be more costly, and less effective if provided performed by the government. As an alternative, Minnesota invests hundreds of millions of dollars into the community through the nonprofit organizations who are embedded within communities around the state.

> The state of Minnesota and nonprofits have a deep interdependence and partnership, but it is risky and challenging for nonprofits.

The nonprofit sector, as a whole, earns about a third of its total revenue by providing services under contracts and agreements with governments. For some areas of the nonprofit sector- the financial implications of the partnership with government are even more dramatic. On average, human service nonprofit budgets are made up of about 70% government funds- these are called “grants” in Minnesota- but the majority of which really behave as contracts. Most community-based nonprofits operate with high financial risk as a result of their government funds, in particular:

Operating deficits due to government contracts which do not recognize full costs to deliver services
Few or no reserves, leaving no margin of error for delayed payments, budget renegotiation, or administrative capacity to manage the burdensome regulation
Milk

> Our state's social outcomes and community well-being - our potential- is hampered by burdensome and outdated regulations, processes, and systems that govern state funding to nonprofits.

This deep partnership between nonprofits and the state is currently fraught- the state funding compliance environment that nonprofits must operate within is built on inefficient, duplicative, outdated, and often archaic systems. For both nonprofit organizations and government agencies alike- administrative burden is limiting the potential for transformational work in community that is possible through state funding.

> Many eligible nonprofits currently face significant barriers in accessing state funding and significant burdens in managing state funding.

Our work is to advance the interests of nonprofits that partner with the state through grants and contracts- with particular focus on those who have historically had disproportionate challenges accessing these types of funds for whom managing government funds represents an inequitable burden- greater Minnesota rural organizations, small organizations, and BIPOC-led and –serving organizations.

> Reducing barriers and burdens offers BOTH state agencies & communities opportunities to improve outcomes.

We recognize that reform of our state/nonprofit partnership could potentially be beneficial for state agencies and their staff- reducing administrative burden while strengthening our mutual capability to focus on improving outcomes and strengthening our communities’ well-being across the state.

> We need to move together, as a statewide alliance of nonprofit organizations, to influence reform to Minnesota's grants and contracts system.

If policy provisions are developed without input from nonprofits or without consideration of how nonprofits will be impacted, it’s likely the provisions will be at best ineffective and at worst harmful.

We need you to advocate with us for positive reform!

RSVP for a listening session OR sign up to receive updates on the MN State Grants & Contracts Coalition