Johnston County NonProfit Agency Funding Policy

 

(Adopted January 2, 2024)

 

I. Purpose

The purpose of this policy is to promote partnerships between Johnston County and nonprofit agencies for the benefit of Johnston County residents to improve the quality of life for its citizens, seek efficiency in service delivery, and ensure transparency, accountability, consistency, and adherence to best practices.

II. Coverage

The focus of this policy is on meeting the needs of county residents by providing funding to nonprofit agencies to support the delivery of needed services or programs that the county is not able to or does not provide or that the agency can deliver more effectively, efficiently, or equitably. The funding is intended to support the delivery of services and programs. Capital construction or capital improvement projects may be eligible if the agency provides matching funds (which may include in-kind donations calculated as dollar amounts), the project is complete at the end of the grant, and the project provides a facility that is open to the public on a nondiscriminatory basis. This policy is applicable to funding requests for support from nonprofit agencies that serve the citizens of Johnston County.

III. Policy

A. Eligibility

Johnston County does not fund start-up agencies. All agencies that apply for funding must have been in operation for at least three (3) years prior to being considered for a grant award.

Agencies may not apply for funding for the same program from different county funding sources. Any expenditure of funds appropriated by the county must satisfy the North Carolina Constitution’s public purpose requirement and must be spent on projects, programs, or services that Johnston County has the authority to directly provide according to statutory authority. (N.C. Constitution Article V, Section 2(1); NCGS §153A-449)

For purposes of this policy, qualified agencies serving Johnston County are defined as those having 501(c)(3) designations and meeting the legal requirements of the State of North Carolina, the Internal Revenue Service (IRS), and the County of Johnston and which use locations within Johnston County for its primary service place, have an office in Johnston County, have a significant impact on Johnston County residents in its service population, and/or conduct a substantial number of their activities in Johnston County.

Exceptions: Requirements for agencies receiving pass-through funding or funding assistance through a specific appropriation, fund, grant, or program outside of a request for general funding assistance may differ from those required under this policy, and will be determined by the county based on the specific appropriation, grant, or program requirements.

B. General Funding Assistance

Nonprofit agency funding is intended to provide time-limited funding for qualified agencies that provide services the County is legally permitted to fund. A funding award in one year is not a guarantee of future funding. Agencies should refrain from requesting support for permanent personnel and other ongoing expenses. Priority will be given to applications that most closely align with Board of Commissioners priorities established in a given funding cycle. Notwithstanding the foregoing, the Board reserves the right to authorize funding to qualified nonprofit agencies in its sole discretion.

C. Application Process

Applications will be available by February of each fiscal year. Notification will be posted on the Johnston County website, including the application, evaluation criteria, and timelines.

The applications will collect information and be evaluated based on:

(i) Alignment to Johnston County goals and funding priorities;
(ii) Public purpose and community need;
(iii) Impact and cost-effectiveness of program(s), service(s), or project(s) to be provided;
(iv) Type of program(s), service(s), or project(s) provided, the estimated number of residents to be served, outcomes to be achieved, and specific metrics that can be used by Johnston County to evaluate the success of the program(s), service(s), or project(s) funded by Johnston County and their desired outcomes;
(v) Performance outputs, outcomes and demonstrated success;
(vi) Capability and ability to complete or provide the proposed program(s), service(s), or project(s).
(vii) Other sources of revenue/funding to support the program(s), service(s), or project(s);
(viii) Agency financial health and sustainability;
(ix) Tax-exempt documentation demonstrating nonprofit status, current annual certified audit or financial review, and a board member roster to ensure compliance with applicable laws.

All agencies must adhere to the accountability standards set by the Board of Commissioners, including complying with all financial and performance measurement requirements and terms of contracts, including meeting all deadlines.

An application may not be considered if the application packet is incomplete or is submitted after the established deadline. An organization’s receipt of funding in a prior year will not be a determining factor in the recommendation process. Each year is evaluated independently of any prior year’s funding decisions. Therefore, an award for one year is not a guarantee of funding in any future year(s).

D. Funding Amount and Approval

The Johnston County Board of Commissioners reviews and approves all recommendations for county funding. These amounts may differ from the recommended funding. Pursuant to N.C.G.S. §14-234.3, members of the Johnston County Board of Commissioners shall not participate in contracts benefiting nonprofits with which they are associated.

IV. The Recommendation Process

County staff will review applications and make recommendations for funding. County staff serving on agency boards may not participate in the review process for the affiliated applicant. The County Manager reviews all funding recommendations and has the authority to make a different recommendation to the Board of Commissioners.

V. Distribution of Funds, Reporting, and Compliance

Upon Board of Commissioner approval, agencies will be notified of their funding awards. All funded agencies are required to sign a contract prior to receiving funding. Funding will not be released until the signed contracts are approved and executed by both parties.

Funds distributed by Johnston County may only be spent as indicated in the nonprofit application and contract for which funds were awarded, or as otherwise approved by the Board of County Commissioners. Johnston County funding distributed to nonprofit organizations may not be used for political activity. Funded organizations may be subject to on-site monitoring visits by County Staff as well as a comprehensive County internal audit. The reporting and monitoring requirements will be specified in the contract. Johnston County reserves the right to recapture funds not utilized according to this policy.