Green energy nonprofit bank collects $5 million from taxpayers

The 2025 state budget gives $5 million of taxpayer money to Michigan Saves, a nonprofit bank that promotes wind and solar energy.

The appropriation is consistent with other spending priorities of Gov. Gretchen Whitmer, who approved hundreds of millions in taxpayer dollars to implement her state version of the Green New Deal, which she calls the MI Healthy Climate Plan.

Whitmer used a press release to defend the $5 million grant, which she said would “support Michigan Saves, Michigan’s nonprofit Greenbank, in offering credit enhancement tools intended to incentivize lending at lower rates and under better terms for clean energy and water improvements.”

Michigan Saves promotes accessible, equitable, and just investments in energy efficiency and clean energy to support healthy and thriving communities, its website says.

The organization receives a substantial portion of its revenue from taxpayers. In 2020, it reported $4,812,280 in revenue. Of that, $2,503,219 came through government grants. A government grant in 2021 came to $3,737,100, and another one in 2022 gave Michigan Saves $2,523,425, according to the most recent form 990s available.

A good guideline for nonprofits is that they should spend no more than 35% of their expenses on administration, according to the accounting firm Warren Averett.

In 2022, however, administrative costs accounted for 66% of Michigan Saves’ expenses. The comparable number for 2021 was 54%.

A significant share of the organization’s income was used to pay Public Sector Consultants, a Lansing lobbying and consulting firm. The consulting firm received $1,743,549 in 2020, followed by $2,066,238 in 2021 and $2,664,830 in 2022.

“All grant funds will support the loan loss reserve (LLR) or other comparable financial instrument to further leverage private investment in clean energy improvements,” Todd Parker, vice president of Michigan Saves, told Michigan Capitol Confidential in an email. ”This includes continued support for our loan loss reserve, testing a bridge financing product for tax-exempt entities, and testing the Access Energy Loan with its nontraditional underwriting criteria statewide.”

Michigan Saves used Public Sector Consultants to staff and manage the organization, Parker added.

The $5 million grant is one of hundreds of pork project grants given by Whitmer and the Michigan Legislature. These projects undergo no vetting process and face no accountability requirements for how recipients spend the money.

A legislator will request money for an organization in his or her district while denying other organizations the opportunity to also compete for the funds.

The bank is located in a district represented by Rep. Emily Dievendorf, D-Lansing. Dievendorf did not respond to a request for comment.