Nonprofits Can Be Climate Leaders, But Hurdles Hold Them Back

To the Editor:

Thank you for publishing Jim Rendon and Sara Herschander’s recent piece, “Nonprofits Control Their Own Climate Perils” (August 8).

Over the past year, we at the Environmental and Energy Study Institute have talked with thousands of nonprofit leaders, staff, and volunteers eager to leverage new federal programs to take meaningful steps to address climate change. Given their deep connections to the communities they serve, these folks are well positioned to act as catalysts for local climate action. But many nonprofits — especially smaller ones, those serving rural areas, and those led by people of color — face significant hurdles.

As the authors noted in their article, there is no better time in U.S. history to invest in climate solutions, thanks to the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. Notably, the U.S. Department of Energy’s Renew America’s Nonprofits program provides funds for nonprofits to reduce their energy use. And the Inflation Reduction Act’s “elective pay” provisions allow nonprofits to receive payments in lieu of tax credits for clean-energy projects. Both initiatives are potential game changers for nonprofits, or at least those with the bandwidth to navigate federal requirements and paperwork.

Improving nonprofits’ access to affordable clean energy would help spur climate action. Consider the countless nonprofit-owned facilities across the country that could be made more energy-efficient. Think of all the roofs on those facilities that could be topped with solar panels. In times of worsening climate effects, buildings improved with energy efficiency and renewable energy can be more resilient to extreme heat, severe storms, and other serious weather events. Each of these facilities also presents a chance to demonstrate visible leadership and good environmental stewardship.

Additionally, energy costs are the second-highest operational expense for many nonprofits, behind salaries. According to the Environmental Protection Agency, as much as 30 percent of the energy consumed in hospitals, schools, and other commercial buildings is wasted, leading to enormous opportunities for energy savings. Nonprofits can reinvest these savings to advance their core missions and better serve their communities.

But before this can happen, these groups need help overcoming resource and bandwidth constraints when accessing federal incentives. That involves eliminating requirements that nonprofits share costs for projects, offering technical assistance, answering questions, allowing corrections to applications without a risk of rejection, and streamlining reporting requirements.

Critically, federal incentives must continue to be available. As many nonprofits as possible should be encouraged to take climate action for their own benefit and the public good.

Daniel Bresette
President
Environmental and Energy Study Institute