State earmarks give Flint nonprofit $2 million over two years

The state of Michigan has approved a grant to a Flint nonprofit for the second time in two years. The organization, 100k Ideas, received $500,000 from taxpayers in the 2024 budget and will receive $1.5 million from the 2025 budget.

The nonprofit gives marketing and other advice to microbusinesses and entrepreneurs, according to its website. Some clients pay a $200 fee for some services, though fee waivers are available.

Michigan Capitol Confidential reported on the organization’s $500,000 state grant in 2023. At the time, CapCon found that the organization charged a $40 per hour consulting fee or a $100 monthly fee.

The organization received its tax-exempt status in 2017. It had a total of $635,799 in expenses for salaries, wages and benefits, according to a Form 990 it filed for 2023 with the IRS. It received $772,161 in grants and contributions in the same year.

The organization aims to help early-stage businesses develop a strong foundation, the group said in an email to CapCon.

“We know without a business bank account or having their business properly registered, the ability to grow will be stifled,” it said. “However, we also know asking for help in these areas is often intimidating. We built a space where the intimidation factor is removed, because our early-staged businesses are already comfortable working with us. Our location is used as the first point of contact to financial institutions, CPAs, legal support, and small business support providers.”

CapCon periodically reports on taxpayer-funded grants included in the annual state budget. The stories are meant to highlight the lack of transparency in its budgeting process, not evaluate the merits of each recipient.

Legislators handpick organizations in their districts and request the money be included as part of the state budget. The grants do not go through an appropriations process to ensure they are a good use of taxpayer dollars.

There is no open process for securing the grants; an organization must gain the ear of a legislator, whose identity is not revealed in the budget.

If, however, the sponsoring legislator does not come forward after one year, the organization could lose the money.