Baltimore Invests $48M in Nonprofit Capacity Building

Baltimore Anchor Institutions Pledge doubled City Investment in New PILOT Agreements

BALTIMORE, MD (October 1, 2025) – In a landmark agreement poised to bolster Baltimore’s financial stability, Mayor Brandon M. Scott adn the city’s 14 largest anchor institutions today announced new Payment In Lieu of Taxes (PILOT) agreements spanning Fiscal Years 2027-2031.The deal signifies a substantial increase in financial commitment from these key organizations, impacting the city’s ability to fund vital services and infrastructure.

The institutions involved – a powerful coalition of medical centers and universities – include Grace Medical Center,Johns Hopkins Hospital,Johns Hopkins Bayview Medical Center,Good Samaritan Hospital,MedStar Harbor Hospital,MedStar Union Memorial Hospital,MedStar Mercy Medical Center,Sinai Hospital,Ascension St.Agnes Hospital, University of Maryland Medical Center Downtown Campus, University of Maryland Medical Center Midtown Campus, Johns Hopkins University, Loyola University Maryland, Maryland Institute College of Art, and Notre Dame of Maryland University.

For the past 16 years, previous PILOT agreements have generated between $1.4 million and $6 million annually for the city.This new agreement dramatically scales that contribution, doubling the current annual investment from $6 million in 2027 to $12 million by 2030. A phased implementation with annual rate increases is designed to allow institutions to adapt to the increased financial obligations.

The agreement acknowledges the current economic pressures facing healthcare and educational institutions, particularly the impact of recent federal funding cuts. Smaller institutions like Grace Medical Center and Maryland Institute College of art will benefit from a more flexible approach, recognizing their unique financial circumstances. The terms of the PILOT agreement will be revisited in Fiscal Year 2031, allowing for further adjustments based on evolving economic conditions.

“Baltimore’s economy is powered by ‘meds and eds,’ the institutions that employ, train, educate, and treat so many of our residents,” Mayor Scott stated. “This agreement increases their shared investments in our city, while taking into account the financial strain that they are experiencing as this federal administration continues to target colleges, universities, and hospitals. As always, we are grateful for their significant contributions to our city and our residents, and look forward to continuing to build on our partnership in the years to come.”

Matthew Power, president of the Maryland Independent College and University Association (MICUA), echoed this sentiment, stating, “The largest nonprofit institutions in Baltimore deliver billions of dollars in community impact each year and are deeply invested in the success of the City. We are pleased to have a new agreement with Mayor Brandon Scott to increase the annual contribution this group makes to the City. These institutions are proud to be a part of the positive transformation taking place in communities across our city, and they remain committed to working every day to support Baltimore’s residents.”

The Maryland Hospital Association further emphasized the commitment of its member hospitals, noting their “deep commitment…to continuously invest in and support a wide array of programs and services including charity medical care, support for local schools, and community health services throughout the City that help improve the health and well-being of Baltimore residents.”

Beyond the PILOT program payments, these 14 institutions already contribute an estimated $29 million annually to Baltimore through various community initiatives and programs, solidifying their role as vital economic engines and community partners. This new agreement represents a significant step forward in strengthening that partnership and securing a more prosperous future for Baltimore.

What specific organizational development areas will the core infrastructure grants prioritize?

Understanding the Landmark Investment

Baltimore City has recently announced a important $48 million investment dedicated to bolstering the capacity building efforts of its local nonprofit organizations. This initiative, launched in late 2024 and gaining momentum in 2025, represents a pivotal moment for the city’s social impact sector. The funding aims to address critical infrastructure gaps within nonprofits, enabling them to more effectively serve the community and scale their operations. This isn’t simply a grant; it’s a strategic investment in the future of baltimore’s community support system. Key areas of focus include organizational development, financial management, technology upgrades, and fundraising strategies.

Breakdown of the $48 Million: Where is the Money Going?

The $48 million is being distributed through a multi-faceted approach, targeting different levels of nonprofit need. Here’s a detailed look:

* $20 Million: Core Infrastructure grants: These grants, ranging from $25,000 to $100,000, are designed to address essential operational needs. This includes things like accounting software, updated computers, and basic staff training in areas like grant writing and data management.

* $15 Million: Leadership Development Programs: Recognizing the importance of strong leadership, this portion of the funding will support executive coaching, leadership training workshops, and succession planning initiatives for nonprofit leaders. This focuses on nonprofit leadership and executive coaching.

* $8 Million: Technology Enhancement Fund: Many Baltimore nonprofits struggle with outdated technology. This fund will provide resources for cybersecurity improvements, cloud-based solutions, and digital accessibility upgrades. This is crucial for digital transformation in the nonprofit sector.

* $5 Million: Collaborative Initiatives: This segment encourages partnerships between nonprofits to share resources, expertise, and best practices. The goal is to foster a more collaborative and efficient nonprofit ecosystem.

Benefits of Increased Nonprofit Capacity

Investing in nonprofit capacity isn’t just about giving organizations money; it’s about unlocking their potential. The benefits are far-reaching:

* Improved Program Quality: Stronger infrastructure allows nonprofits to focus more on delivering impactful programs and services.

* Increased Accountability & Clarity: Enhanced financial management systems and data tracking lead to greater accountability to funders and the community.

* Greater Sustainability: Effective fundraising strategies and diversified revenue streams ensure long-term organizational stability.

* Enhanced Collaboration: Capacity building fosters a spirit of collaboration, leading to more coordinated and effective solutions to complex social problems.

* Attracting & Retaining Talent: Nonprofits with robust infrastructure are better able to attract and retain qualified staff.

Eligibility Criteria & Submission Process

The Baltimore Nonprofit Capacity Building Fund prioritizes organizations that:

1. Are registered 501(c)(3) nonprofits operating within Baltimore City.
2. Have an annual operating budget of under $5 million. (Though exceptions might potentially be made for collaborative projects).
3. Demonstrate a clear commitment to serving Baltimore’s underserved communities.
4. Can articulate a specific plan for how the funding will be used to improve their organizational capacity.

The application process is managed through the Baltimore Community Foundation and involves a competitive review process. detailed guidelines and application materials are available on their website (https://www.bcf.org/). Grant application assistance workshops are also being offered to help nonprofits navigate the process.

Real-World Impact: Case Study – The baltimore Youth Arts Collective

The Baltimore Youth Arts Collective (BYAC), a local institution providing arts education to underserved youth, received a $75,000 core infrastructure grant in the first round of funding. Prior to the grant, BYAC struggled with outdated accounting software and limited staff capacity for grant reporting. With the funding, they were able to implement a new cloud-based accounting system and hire a part-time grant writer. As a result, BYAC has seen a 20% increase in prosperous grant applications and a significant reduction in administrative burden, allowing them to dedicate more resources to their core programming. This demonstrates the power of capacity building grants.

Practical Tips for Nonprofits Seeking Funding

* Needs Assessment: Conduct a thorough internal assessment to identify your organization’s most pressing capacity building needs.

* strategic Planning: Develop a clear strategic plan that outlines how the funding will align with your organization’s long-term goals.

* Data-Driven proposals: Use data to demonstrate the impact of your programs and the need for capacity building support.

* Collaboration: Explore opportunities to collaborate with other nonprofits on joint proposals.

* Seek Technical Assistance: Take advantage of the free workshops and technical assistance offered by the Baltimore Community Foundation and other local organizations. Nonprofit consulting can be invaluable.

Looking ahead: The Future of Baltimore’s Nonprofit Sector

this $48 million investment is a significant step forward, but it’s just the beginning. Baltimore City officials have expressed a commitment to ongoing support for the nonprofit sector, recognizing its vital role in addressing the city’s most pressing challenges. Continued investment in capacity building will be essential to ensure that Baltimore’s