Nonprofit Relief Program CARES Act Grants
The purpose of the Northfield Nonprofit Relief Grant Program (“Program”) is to provide temporary financial support to nonprofits adversely impacted by the COVID- 19 pandemic and the COVID-19 peacetime emergency. The goal of the Program is to help nonprofits through the current economic crisis, continue to deliver much needed services to the community and retain local jobs.
The City of Northfield has designated $200,000 of the CARES Act federal allocation for emergency nonprofit assistance. Applications will be accepted over the three-week application period. Applications will be selected through a lottery system. Should there be more applications than budgeted; the City reserves the right to evaluate allocated funding for this program. The City of Northfield has designated $25,000 of total nonprofit assistance funds specifically to organizations who serve minority and low-income populations.
The Program shall be administered by the Community Development Department. Should nonprofits have questions or require assistance completing the online application, please contact the Program Administrator, Nate Carlson at 507-645-3069 or email Nate Carlson.
These program guidelines adhere to federal rules and regulations associated with the CARES Act and were adopted by City Council on September 1, 2020 via Council Resolution 2020-078, which authorizes the City Administrator to approve disbursement of awards. The City of Northfield reserves the right to revise these guidelines as needed.
- Nonprofits may apply one time for an emergency grant up to $10,000, based on economic hardship from COVID-19.
- Funds shall be used exclusively for the following eligible expenses:
- Operating expenses, including payroll, rent/lease payments, mortgage payments, utilities (excluding city wastewater, stormwater and water services), payments to suppliers, or other critical business expenses as approved by the Program Administrator incurred between March 27, 2020 – November 15, 2020.
Nonprofits must meet all the following criteria as of March 1, 2020 to be eligible:
- Have equivalent of fifty (50) full-time (or equivalent) or fewer employees
- Organization has a physical, location, whether owned or leased, located in corporate city limits of Northfield.
- Be in good standing with the Minnesota Secretary of State and the Minnesota Department of Revenue
- Be in good standing with the City of Northfield
- Demonstrate the nonprofit was adversely affected by Executive Orders related to COVID-19 business restrictions
- Demonstrate financial hardship as a result of the COVID-19 outbreak
- Religious organizations (for religious purposes)
- Lobbying groups and political organizations
- Organizations that restrict activity based on ethnicity, gender, orientation, or ability.
- Applications will be accepted beginning Thursday, September 8 through Wednesday, September 30.
- All applicants will be notified by email on or before Wednesday, September 30 if they received an award
- Upon notice of an approved application, the following documentation must be provided to the Program Administrator within five business days:
- A copy of the IRS Nonprofit determination letter.
- Revenue verification. The most recent federal 990 tax return filed by the nonprofit (first six pages are sufficient).
- Impact and loss of revenue verification. Evidence of negative impact and loss of revenue due to COVID-19 pandemic and peacetime emergency. Applicant should submit documentation that best demonstrates the impact and is deemed acceptable to Program Administrator.
- Examples of acceptable documentation include: Sales Tax Reporting; monthly profit and loss statements; comparable point of sales, cash register reports, merchant statements or other sales records
- Employee verification. Evidence of employment prior to March 1, 2020. Acceptable documentation may include: company’s 2019 federal form W3; period reporting from a 3rd party payroll processor; applicant’s Federal Form 941/Employer’s Quarterly Federal Tax Return; or other State or Federal payroll-related filing.
- Evidence of eligible expenses that occurred in since March 27, 2020 (e.g. rent/lease agreement, utility statements, supplier invoices, payroll, tax payments, payments to suppliers, etc.). Provide documentation that expenses total or exceed the amount requested in application
- Failure to submit required documentation will result in forfeiture of grant award.
- Upon notice review and acceptance of additional documentation, the nonprofit will enter into a grant agreement with the City of Northfield.
- Terms will be included in the grant agreement, including the reporting requirement to provide information to the City 90 days after execution of grant on status of nonprofit and actual use of grant funds.