Winston-Salem may hand nonprofit grants to 3 local groups

Winston-Salem could stop choosing which nonprofits get its yearly grants and hand that job to three local organizations instead.

City budget staff presented the idea, which they call an “umbrella model,” to the City Council’s Committee of the Whole on Monday. It was an information item, so there was no vote. Staff plan to bring a formal proposal back the following month, according to the staff report.

How it would work

Today the city runs the whole process itself. Staff and the council review, score and debate each request, and the city signs a separate agreement with each group.

Under the umbrella model, the city would set the rules and the dollar amounts. Three partner organizations would then run the applications, pick the winners, hand out the money and monitor the results. The staff presentation named these possible partners:

The proposed amounts total $975,000. The number of grant agreements city staff handle would drop from 27 to three, the report said.

The idea came out of the council’s January 2026 winter retreat, according to the report.

What it covers, and what it does not

The change would apply only to grants paid from the city’s general fund. That is $955,000 in the current budget year, spread across these areas, the presentation said:

• Arts: $213,000
• Jobs and innovation: $31,000
• Education and human services: $711,000

Grants paid from hotel occupancy tax money would not change. That fund carries $398,000 this year for groups such as Old Salem, the NC Black Repertory Company and RiverRun. State law limits it to economic development, culture and recreation.

Federal housing grants, such as Community Development Block Grant money, are run separately by the Neighborhood Services Department and are not part of the plan.

The rules staff proposed

The presentation listed guardrails the council would need to approve:

• Any nonprofit that meets current city guidelines could still apply.
• Scoring criteria would be posted publicly, and all review materials would be public documents.
• Applications would open in the spring, with decisions by July, subject to the city budget.
• Partners would report to staff twice a year and to the mayor and council once a year.
• Partners would have to tell the city about any legal or ethics problems with a grantee.
• Awards over $50,000 would still need an audit or financial review.

Staff also asked the council whether any groups should be “anchor agencies” funded directly, whatever the umbrella partner decides. That would reduce the money passed through the partners. The council does not have to settle that question right away, the presentation said.

Who gets city money now

Nearly half of the groups funded this year are new. Of the 28 agencies on the city’s list, 32% have been funded for 20 years or more, 21% for four to 19 years and 46% are new in the budget year that began July 1, according to the presentation.

The largest general fund grants this year include the Arts Council at $213,000, Kaleideum at $134,000 and Union Community Development Corp. at $98,000.

What it means for you

• If you run a nonprofit that gets city money or plans to apply, the application would likely come from one of the three partners instead of City Hall, as soon as next spring if the council approves the change.
• Nothing is decided. The council would vote on the partners, amounts and rules when staff bring the item back.
• To tell your council member what you think, see who to call at City Hall.