Executive Summary
The Texas nonprofit community plays a vital role in providing health and human services and social services to Texans in need throughout the state. As the needs of Texans have grown, so too has the nonprofit community, which has had a demonstrable and widespread impact on many critical economic sectors within this state. State government is in a position to support the efforts of Texas’ nonprofit community by expanding and strengthening sustainable partnerships between state agencies and nonprofit organizations.
The Texas Health and Human Services Commission (HHSC), in partnership with OneStar Foundation, established the Task Force on Strengthening Nonprofit Capacity, as directed by House Bill (H.B.) 492, 81st Legislature, Regular Session, 2009, in March 2010 to make recommendations for strengthening the capacity of faith- and community-based organizations (FCBOs) for managing human resources and funds and providing services to Texans in need.
The task force sought public testimony throughout Texas at five public hearings and solicited for written comments and recommendations by mail and e-mail. The task force also collaborated with the Bush School of Government & Public Service at Texas A&M University to develop and implement a statewide survey seeking input on nonprofit capacity building from small- and medium-sized FCBOs not heard through public hearings, mail, and e-mail. The task force met throughout September and October 2010 to develop its report with legislative recommendations, considering all public input.
In accordance with the directive established by H.B. 492, the task force recommends the Texas legislature enact the following policies to strengthening the capacity of FCBOs in Texas and strengthening the nonprofit sector, in general [full recommendations]:
The Texas Health and Human Services Commission (HHSC), in partnership with OneStar Foundation, established the Task Force on Strengthening Nonprofit Capacity, as directed by House Bill (H.B.) 492, 81st Legislature, Regular Session, 2009, in March 2010 to make recommendations for strengthening the capacity of faith- and community-based organizations (FCBOs) for managing human resources and funds and providing services to Texans in need.
The task force sought public testimony throughout Texas at five public hearings and solicited for written comments and recommendations by mail and e-mail. The task force also collaborated with the Bush School of Government & Public Service at Texas A&M University to develop and implement a statewide survey seeking input on nonprofit capacity building from small- and medium-sized FCBOs not heard through public hearings, mail, and e-mail. The task force met throughout September and October 2010 to develop its report with legislative recommendations, considering all public input.
In accordance with the directive established by H.B. 492, the task force recommends the Texas legislature enact the following policies to strengthening the capacity of FCBOs in Texas and strengthening the nonprofit sector, in general [full recommendations]:
- The legislature should create a line-item appropriation for the Renewing Our Communities Account (ROCA), in the Health and Human Services Commission (HHSC) budget, to build the capacity of small- and medium-sized FCBOs.
- The legislature should direct HHSC to conduct and document special outreach to nonprofits in historically disadvantaged and underserved communities in soliciting ROCA proposals, and to give priority to historically disadvantaged and underserved communities in the awarding of funds.
- The Lieutenant Governor of Texas and the Speaker of the Texas House of Representatives should issue interim charges directing one or more legislative committees to examine issues relating to nonprofit organizations’ access to credit, and to explore ways in which the state could improve the nonprofit sector’s access to capital for social innovations.
- The legislature should direct the Texas Department of Insurance to develop mechanisms for affordable group employer-sponsored health insurance for employees of nonprofit organizations.
- The legislature should direct the Interagency Coordinating Group (ICG), established by House Bill 492, 81st Legislature, Regular Session, 2009, to develop and implement a plan to improve contracting relationships between state agencies and the nonprofit sector.
- The legislature should continue the ICG. The ICG should be expanded to include the Governor’s Office, Department of Public Safety, Department of Insurance, Public Utility Commission, Office of the Attorney General, Department of Agriculture, Comptroller of Public Accounts, and other agencies. The ICG should be charged with sharing best practices for state agency and nonprofit cooperation and collaboration, identify duplication and gaps in service delivery among state agencies, and identify strategies for addressing these deficiencies. The ICG should establish a task force to assist them in this effort with representatives from private funders, local government, and FCBOs.
- The legislature should direct the Department of Information Resources to consult with the ICG and its advisory committee to develop a user-friendly portal for local FCBOs to access information on state funding opportunities, including grants and contract opportunities, best practices, and other pertinent information.
- The legislature should ensure a stable environment for nonprofit organizations by maintaining current tax policies related to nonprofit organizations.
- The legislature should direct state agencies to maximize their acquisition of federal funds for nonprofit grant and contract programs.
