Colorado Nonprofits Push for Overhaul of State Grantmaking System

Statewide nonprofit coalition organizer launches “Funding the Frontlines” agenda.

A coalition of small, community-rooted Colorado nonprofits is calling for sweeping reforms to the state’s grantmaking system. They argue that outdated policies continue to block critical funding from reaching the organizations most connected to residents.

Communities Lead Communities Thrive (CLCT), a statewide network of grassroots nonprofits, recently unveiled its Funding the Frontlines Policy Agenda. The community-informed roadmap is aimed at modernizing how Colorado distributes state dollars. The effort follows a series of summer listening sessions with more than three dozen nonprofits from around the state. Many participants voiced deep frustrations with a system they say favors large, well-resourced organizations.

“Colorado’s nonprofit landscape is evolving, and our state systems need to evolve with it,” says Marco Dorado, managing director of CLCT. “Community-rooted organizations are doing extraordinary work under extraordinary pressure. They are trusted messengers, service providers, innovators and partners to the state; yet, too often they face unnecessary barriers to public funding.”

A Push for Practical, Equity-Driven Reform

At the core of CLCT’s agenda is a push to replace Colorado’s longstanding reimbursement-based funding model. Nonprofits across the state have argued for years that the system – which requires organizations to spend money upfront and wait weeks or months for repayment – places an unsustainable burden on smaller groups operating with tight cash flow.

CLCT’s proposal calls for trust-based and upfront funding models. The coalitions says this shift would finally acknowledge the financial realities facing grassroots organizations, many of which serve historically underrepresented communities.

Other recommendations outlined in the Funding the Frontlines agenda include:

• Clear, consistent communication standards across all state agencies, including transparency in decision-making and timely feedback for applicants.
• Simplified, standardized grant applications to reduce redundant information requests and confusion.
• Multi-year, flexible funding options that allow nonprofits to plan with stability and adapt to community needs.
• Coordinated inter-agency systems to align timelines, reporting requirements and eligibility rules.
• Prioritization of rural and community-rooted organizations, ensuring dollars reach areas where resources are stretched thin.

A Changing Landscape, A Call for Alignment

Colorado’s nonprofit sector plays a central role in addressing statewide challenges, from food access and youth development to immigration support and behavioral health services. Yet, CLCT and its partners argue that the current grantmaking structure leaves too many community-based leaders without the tools or time needed to compete for public funds.

The funding agenda builds on CLCT’s recent work, including the creation of the Colorado State Grant Database for Nonprofits. This public-facing database is the first in state history. It is designed to help organizations search for and prepare state grant applications. CLCT has also been a vocal advocate for modernizing Colorado’s reimbursement model.

Leaders involved in summer listening sessions emphasized that the fixes needed are not complicated, but they require state agencies to adopt more uniform, transparent and accessible practices.

“Investing Where Results Already Exist”

CLCT’s recommendations, Dorado says, reflect what community leaders have been saying for years: smaller nonprofits are often closest to the people most impacted by statewide challenges. Without equitable access to state resources, their ability to provide services and scale impact remains limited.

“Funding the Frontlines is about modernizing the state’s grantmaking system to meet the realities of Colorado today,” he says. “These organizations already deliver results – we simply need systems that invest in them accordingly.”

About CLCT

CLCT is a statewide coalition working to ensure equitable access to state dollars for small, community-rooted nonprofits, particularly those led by and serving historically underrepresented populations. Through advocacy, power-building and systems reform, the coalition aims to strengthen the voice and impact of grassroots organizations across Colorado.

Editor’s note: For more information about CLCT and the Colorado State Grant Database for Nonprofits, visit www.coclct.org.