How Nonprofits Get Funded
Nonprofits get funded a lot of ways — foundations, individual donors, government contracts, earned revenue. This page is about the two that most nonprofits never learn about: bank funding under the Community Reinvestment Act (CRA), and workforce funding under the Workforce Innovation and Opportunity Act (WIOA). They come from different places, they follow different rules, and they stack. Here's who pays, why they pay, who decides — and how to reach both.
Two doors most nonprofits never open.
| CRA — Bank Funding | WIOA — Workforce Funding | |
|---|---|---|
| Who pays | A bank | Federal → state → your local workforce board |
| Why they pay | Federal law requires banks to invest in the communities they serve. They're graded on it. | Federal workforce law funds training that leads to jobs |
| What it pays for | Financial literacy · Entrepreneurship & small business · Jobs & economic development | Youth services · Adult training · Dislocated worker training |
| How much | $5,000–$25,000 per program, often renewed every year | Per participant, tied to documented outcomes |
| Who decides | The bank — and its federal examiner | Your local workforce development board |
| Who you call | The bank's CRA officer or Community Development Officer | Your local workforce board's provider or contracts office |
| What they need from you | Documentation they can report | Eligibility records, attendance, skill gains, credentials |
| How fast | Weeks to a few months | Months — and often a procurement cycle |
"The same cohort can be funded by both — different sources paying different cost lines. That's how a $30,000 program gets funded without a single $30,000 grant."
A 20-participant cohort:
Illustrative model based on documented funding sources. Actual awards are determined by each funder.
CRA — Bank Funding
Who checks the banks
Banks are reviewed by federal regulators including the Federal Reserve, the FDIC, and the Office of the Comptroller of the Currency. These regulators give each bank a CRA rating.
Why the rating matters
A bank's CRA rating affects whether it can open new branches, merge with or acquire other banks, and expand into new cities. Ratings are: Outstanding, Satisfactory, Needs to Improve, and Substantial Noncompliance. Most banks work hard to stay in the top two.
The three areas banks earn credit in
budgeting classes, credit education, banking basics, money management
entrepreneurship training, small business education, startup readiness, business planning help. One of the easiest CRA credits for banks to earn.
job readiness, workforce training, career pathways, programs that help people earn income
What banks have to track
How much they invest, what programs they fund, who those programs serve, and what results the programs produce. They must show this during CRA reviews.
Why banks prefer programs like this
Banks have to prove what they funded, who it served, and what happened. They prefer organized programs with reports over random donations, because random donations are hard to report.
"Banks are required by federal law to invest in the communities they serve. They earn CRA credit by funding programs that teach financial literacy, entrepreneurship, and job skills. Our program fits those requirements and provides the documentation banks need for CRA reporting."
This is not charity. It is federally regulated community investment.
CRA examinations described on this page follow the examination framework established in 1995, as amended in 2021.
WIOA — Workforce Funding
The three funding streams
Youth services
Adult training
Dislocated worker training
The ten WIOA Youth Elements
The performance measures WIOA is judged on
Two access routes
Route one — get listed
Get listed as an eligible training provider in your state.
Route two — partner in
Partner with an organization already listed.
Youth services are often procured by the local board through a competitive process.
Eligibility for any funding source is determined by that funder — the bank and its examiner for CRA, your local workforce board for WIOA. A2E provides program design and documentation, not eligibility determinations.