A bill to amend the National and Community Service Act of 1990 to establish a Nonprofit Capacity Building Program.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Nonprofit Capacity Building Act of 
2009''.

SEC. 2. NONPROFIT CAPACITY BUILDING PROGRAM.

    Title III of the National and Community Service Act of 1990 (42 
U.S.C. 12501 et seq.) is amended--
            (1) by striking the title heading and inserting the 
        following:

            ``TITLE III--VOLUNTEER AND CHARITABLE ACTIVITIES

              ``Subtitle A--Points of Light Foundation'';

        and
            (2) by adding at the end the following:

           ``Subtitle B--Nonprofit Capacity Building Program

``SEC. 311. PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Intermediary nonprofit grantee.--The term 
        `intermediary nonprofit grantee' means an intermediary 
        nonprofit organization that receives a grant under subsection 
        (b).
            ``(2) Intermediary nonprofit organization.--The term 
        `intermediary nonprofit organization' means an experienced and 
        capable nonprofit training and technical assistance entity with 
        meaningful prior experience in providing organizational 
        development assistance, or capacity building assistance, 
        focused on small and midsize nonprofit organizations.
            ``(3) Nonprofit.--The term `nonprofit', used with respect 
        to an entity or organization, means an entity or organization 
        described in section 501(c)(3) of the Internal Revenue Code of 
        1986 and exempt from taxation under section 501(a) of such 
        Code.
            ``(4) State.--The term `State' means each of the several 
        States, and the District of Columbia.
    ``(b) Grants.--The Corporation shall establish a Nonprofit Capacity 
Building Program to make grants to intermediary nonprofit organizations 
to serve as intermediary nonprofit grantees. The Corporation shall make 
the grants to enable the intermediary nonprofit grantees to pay for the 
Federal share of the cost of delivering organizational development 
assistance for small and midsize nonprofit organizations, especially 
those nonprofit organizations facing resource hardship challenges. Each 
of the grantees shall match the grant funds by providing a non-Federal 
share as described in subsection (f).
    ``(c) Periods and Amount.--The Corporation shall make such a grant 
for a period of 3 years, unless the Corporation, in the Corporation's 
discretion, provides for a different period, for an initial or renewed 
grant. To the extent practicable, the Corporation shall make such a 
grant to an intermediary nonprofit organization in each State, and 
shall make such grant in an amount of not less than $200,000.
    ``(d) Application.--To be eligible to receive a grant under this 
section, an intermediary nonprofit organization shall submit an 
application to the Corporation at such time, in such manner, and 
containing such information as the Corporation may require. The 
intermediary nonprofit organization shall submit in the application 
information demonstrating that the organization has secured sufficient 
resources to meet the requirements of subsection (f).
    ``(e) Preference and Considerations.--
            ``(1) Preference.--In making such grants, the Corporation 
        shall give preference to intermediary nonprofit organizations 
        seeking to become intermediary nonprofit grantees in areas 
        where nonprofit organizations face significant resource 
        hardship challenges.
            ``(2) Considerations.--In determining whether to make a 
        grant the Corporation shall consider--
                    ``(A) the number of small and midsize nonprofit 
                organizations that will be served by the grant;
                    ``(B) the degree to which the activities proposed 
                to be provided through the grant will assist a wide 
                number of nonprofit organizations within a State, 
                relative to the proposed amount of the grant; and
                    ``(C) the quality of the organizational development 
                assistance to be delivered by the intermediary 
                nonprofit grantee, including the qualifications of its 
                administrators and representatives, and its record in 
                providing services to small and midsize nonprofit 
                organizations.
    ``(f) Federal Share.--
            ``(1) In general.--The Federal share of the cost as 
        referenced in subsection (b) shall be 50 percent.
            ``(2) Non-federal share.--
                    ``(A) In general.--The non-Federal share of the 
                cost as referenced in subsection (b) shall be 50 
                percent and shall be provided in cash.
                    ``(B) Third party contributions.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), an intermediary nonprofit grantee 
                        shall provide the non-Federal share of the cost 
                        through contributions from third parties. The 
                        third parties may include charitable 
                        grantmaking entities and grantmaking vehicles 
                        within existing organizations, entities of 
                        corporate philanthropy, corporations, 
                        individual donors, and regional, State, or 
                        local government agencies, or other non-Federal 
                        sources.
                            ``(ii) Exception.--If the intermediary 
                        nonprofit grantee is a private foundation (as 
                        defined in section 509(a) of the Internal 
                        Revenue Code of 1986), a donor advised fund (as 
                        defined in section 4966(d)(2) of such Code), an 
                        organization which is described in section 
                        4966(d)(4)(A)(i) of such Code, or an 
                        organization which is described in section 
                        4966(d)(4)(B) of such Code, the grantee shall 
                        provide the non-Federal share from within that 
                        grantee's own funds.
                            ``(iii) Maintenance of effort, prior year 
                        third-party funding levels.--For purposes of 
                        maintaining private sector support levels for 
                        the activities specified by this program, a 
                        non-Federal share that includes donations by 
                        third parties shall be composed in a way that 
                        does not decrease prior levels of funding from 
                        the same third parties granted to the nonprofit 
                        intermediary grantee in the preceding year.''.

SEC. 3. CONFORMING AMENDMENT.

    Section 501(b) of the National and Community Service Act of 1990 
(42 U.S.C. 12681(b)) is amended--
            (1) by striking ``There are'' and inserting the following:
            ``(1) Points of light foundation.--There are'';
            (2) by striking ``title III'' and inserting ``subtitle A of 
        title III''; and
            (3) by adding at the end the following:
            ``(2) Nonprofit capacity building program.--There are 
        authorized to be appropriated to carry out subtitle B of title 
        III $25,000,000 for fiscal year 2010 and such sums as may be 
        necessary for each of the 2 succeeding fiscal years.''.

Summary: Nonprofit Capacity Building Act of 2009 - Amends the National and Community Service Act of 1990 to establish a Nonprofit Capacity Building program requiring the Corporation for National and Community Service to award matching grants to intermediary nonprofit organizations for the delivery of organizational development assistance to small and midsize nonprofit organizations, especially those facing resource hardship challenges.

Directs the Corporation, to the extent practicable, to award such a grant to an intermediary nonprofit organization in each state.

Requires grantees to raise their share of the costs of providing such assistance through contributions from third parties, except where the grantee is a private foundation or specified charity.