Subject
title
Work Session for Grants to Nonprofits
end
Department
Housing and Community Development
Recommendation
Staff recommends that Mayor and Council provide feedback on the proposed program design changes to the Community Services and Enrichment Grants as presented to:
1. Adopt five proposed Impact Focus Areas to guide future grant funding decisions,
2. Prioritize one or two of these Impact Focus Areas in FY28, and
3. Provide a streamlined renewal pathway for high-performing programs.
Discussion
Program Overview
The Department of Housing and Community Development (DHCD) administers the City of Rockville's Community Services and Enrichment (CS&E) Grant and the Community Empowerment Matching Grant Programs, which support nonprofit and community-led services and activities that meet vital community needs and enrich the lives of Rockville residents. Both grant programs use standardized application and evaluation processes, community panel reviews and recommendations, quality assurance measures tied to fund disbursement, and alignment with community needs and city goals. The Community Empowerment Matching Grant has historically supported smaller, neighborhood-driven initiatives through a simplified application, award, and reporting process, while CS&E Grants are awarded annually through a competitive process that includes review by trained volunteer panelists consisting of city staff from multiple departments, members of city boards and commissions, and Rockville residents. Using standardized evaluation criteria, reviewers assess CS&E proposals based on factors such as alignment with a community service area, organizational capacity, and anticipated program outcomes before making funding recommendations for inclusion in the City Manager's Proposed Budget. Final funding decisions are made by the Mayor and Council through the annual budget process. Following award approval, grantees submit quarterly performance and financial reports and participate in annual site visits, providing strong fiscal oversight and accountability for public funds.
Establishment of the Community Services and Enrichment Grant Program
Prior to the establishment of the CS&E Grant Program in FY25, the city supported grants to nonprofit organizations for several decades through two primary avenues, the Human Services Grant Program (also called the Caregiver Grants) and additional grants to community organizations. Established in 1982, the Human Services Grant Program provided funding to nonprofit organizations delivering human services to Rockville residents, was administered by the Community Services Division, and typically supported 15 to 25 nonprofit organizations annually. Additional grants to community organizations and outside agencies were administered by the City Manager's Office and supported 10 to 15 organizations annually. In FY25, these two programs were reorganized into the CS&E Grant Program, creating a single, streamlined grantmaking process administered by DHCD that has strengthened nonprofit partnerships, improved outcomes tracking and accountability, and standardized many administrative processes.
Before and after the reorganization, the city's grant investments reflected its commitment to partnering with nonprofit organizations to serve Rockville residents, with funding increasing over the past two fiscal years in response to growing community needs. Historically, Human Services Grants were organized around specific service areas, an approach that continued following the FY25 grant reorganization. In FY26, the CS&E Grants Program funded 40 programs administered by 34 nonprofit organizations, totaling $1,781,110. In FY27, the program will fund 48 programs administered by 40 nonprofit organizations, totaling $1,845,790 in nine service areas (adult education, arts and culture, food and clothing services, health care, housing services, immigrant communities resources, public safety, senior services, and youth development).
Figure 1. Funding for City of Rockville Grants to Nonprofits
Updates to the Community Empowerment Mini-Grants (Matching) Program
In FY27, DHCD is further streamlining administrative processes by realigning grant requirements for requests up to $10,000 to the Community Empowerment Mini-Grant program (formerly Community Empowerment Matching Grant). The renamed program reflects a now-optional matching requirement and continues to offer a simplified application, upfront payments, and streamlined reporting for lower-complexity, one-time, and short-term community projects. During the FY27 transition, DHCD will administer the allocated FY27 matching grant budget of $6,000, while applying these simplified administrative practices to the already-awarded FY27 CS&E grants of $10,000 or less through the single upfront payment and reduced reporting requirement.
For FY28, some funds will shift from the proposed CS&E budget to the proposed Community Empowerment Mini-Grant budget, allowing the mini-grant program to accept FY28 proposals of up to $10,000. FY28 applications will be reviewed by a community panel in April 2027, with recommendations to City Manager in May, and Mayor and Council approval by consent agenda in June. These updates better align administrative requirements with grant size and complexity, support funding for one-time initiatives, move both grant programs to a fiscal year timeline, and increase transparency for mini-grant awards.
Figure 2. FY27 Grantees Under $10,000 Supported by Streamlined Process
|
Organization |
Program |
FY27 Award |
|
Neuromotion, Inc. |
Music in Motion: Therapeutic Rec Program |
$5,000 |
|
Bender JCC of Greater Washington |
Delivering Good Network |
$6,000 |
|
F. Scott Fitzgerald Literary Festival |
F. Scott Fitzgerald Literary Festival |
$6,700 |
|
Montgomery College |
City of Rockville Scholarships |
$10,000 |
|
RHE Foundation |
Scholarship Program |
$10,000 |
|
Village Support Network |
Rockville Area Village Exchange (RAVE) |
$10,000 |
|
New Neighbor Interfaith Alliance |
Monthly Women's Circle |
$10,000 |
Further Opportunities to Strengthen the Community Services and Enrichment Grants Program
DHCD staff have identified additional opportunities to strengthen CS&E grants to nonprofits through proposed program design changes that would help further streamlining administrative requirements for larger grants, improve the evaluation process, and align grant investments with long-term outcomes. These proposed changes are informed by many sources: the City of Rockville's five Guiding Principles; feedback from residents, nonprofit partners, and the Human Services Advisory Commission, especially via the Rockville Human Services Needs Assessment, as well as nonprofit events and annual grantee site visits; and review of regional and national grantmaking best practices. In developing these recommendations, staff also considered the Urban Institute’s Upward Mobility Framework, which identifies the core conditions that enable individuals and families to improve their economic mobility, and Results for America's Economic Mobility Catalog, which highlights evidence-based and promising strategies that local governments can use to achieve those outcomes. The City of Rockville also participates in additional regional efforts to implement the Upward Mobility Framework and align local strategies with regional best practices, for example, through the Metropolitan Washington Council of Governments (COG) and the Government Alliance on Race and Equity (GARE).
Recommended Program Design Changes
Adopt Impact Focus Areas
Staff recommend adopting five Impact Focus Areas to guide future funding decisions:
• Household Stability
• Economic Mobility
• Youth and Family Success
• Service Access and Navigation
• Community Enrichment and Belonging
The proposed Impact Focus Areas would build upon, rather than replace, the CS&E Grant Program's existing service areas. Applicants would continue to describe the services they will provide, the residents they will serve, anticipated program outcomes, and how their proposals advance the city's justice, equity, diversity, and inclusion (JEDI) goals. In addition, applicants would identify one or more Impact Focus Areas and explain how their proposals incorporate preferred or other evidence-based strategies to advance long-term community outcomes. This additional information would enable community review panels to evaluate not only the proposed services and program outcomes, but also how well each proposal advances the city's priority outcomes.
This recommendation also responds to the growing competitiveness of the CS&E Grant Program. In FY27, applicants requested more than $2.8 million in funding, while the city awarded $1.8 million. The proposed framework provides clearer guidance to applicants and more consistent, transparent criteria for community review panels to distinguish among highly competitive proposals. Proposals that most closely align with the Impact Focus Areas would be eligible for higher ratings, while all eligible applications would continue to be considered for funding.
Figure 3. Service Areas Aligned with Recommended Impact Focus Areas and Preferred Strategies
Prioritize Within the Impact Focus Areas in Specific Grant Cycles
The proposed framework provides flexibility for Mayor and Council to further prioritize one or more Impact Focus Areas in any specific grant cycle. For the FY28 grant cycle, staff request feedback on whether one or two of the proposed Impact Focus Areas should be designated as areas of particular emphasis. If identified, those priorities would be communicated in the FY28 Notice of Funding Available (NOFA) and incorporated into the evaluation criteria by assigning additional weight to proposals that most closely advance the FY28 priorities among the five Impact Focus Areas.
Streamline Renewal Requests for High-Performing Programs
As the city seeks to further align grant funding with desired community outcomes, staff also recommend establishing a streamlined renewal pathway for certain high-performing programs. Under this approach, organizations seeking continued funding for an existing high-performing program at substantially the same funding level would be eligible for up to two streamlined renewals before re-entering the full competitive application process. Subject to the city budget, modest cost-of-service adjustments could be included in renewal awards. Eligibility would be based on the CS&E Grant Program's existing quality assurance processes, including annual site visits and quarterly performance reports, with evaluation results shared with grantees. After two renewal cycles, organizations would submit a full competitive application. This approach would reduce administrative burden for both grantees and staff, provide greater funding stability for effective services, and allow the annual competitive review process to focus on new organizations, new initiatives, programs undergoing significant changes, and proposals requiring a more comprehensive review.
Mayor and Council History
Mayor and Council supported the reorganization of the city's Human Services and Community Organizations grant programs into the CS&E Grant Program. The Mayor and Council have also supported efforts to streamline grant administration, improve the consistency and transparency of the application and evaluation process, and deepen engagement with nonprofit partners through initiatives such as the Nonprofit Symposium and Community Partner Cafés. As part of these efforts, the city created a Collective Impact Manager position to oversee grant administration, strengthen cross-sector partnerships, and coordinate collaborative efforts that align community resources with shared goals and resident needs. The recommended program design changes build on these efforts by further aligning grant selections with desired community outcomes, streamlining and strengthening grant processes, and supporting sustained partnership with nonprofit organizations to serve Rockville residents.
Fiscal Impact
Overall funding to nonprofits across both grant programs would not be affected. Some annual funding would shift from the CS&E Grant Program to the Community Empowerment Mini-Grant Program to support grant applications up to $10,000.
Next Steps
If these program design changes are approved, staff will implement feedback from the Mayor and Council, update application materials and technical assistance resources, and communicate the changes to current and prospective grantees through Community Partner Cafés and other outreach beginning in September 2026. The FY28 CS&E application would include alignment with the Impact Focus Areas and incorporate the revised evaluation criteria into the review process, while the city would begin streamlined renewals for eligible high-performing programs in August 2027 for the FY29 grant cycle.