Olympia City Council OKs Inspire Olympia grant funding adjustments 

The Olympia City Council unanimously approved adjustments to the Inspire Olympia grant funding strategy in order to increase support for local arts, culture, heritage and science organizations.  

At a city council meeting on Tuesday, Aug. 12, Marygrace Goddu, the city's Cultural Access Program Manager, presented the Cultural Access Advisory Board's recommendation following months of review and planning.

"The current granting structure is working well so far, and the board is not recommending any notable changes to the funding goals or the granting structure that the council approved in August 2023," Goddu said.

The program distributes about $3 million annually in cultural access tax revenue to local nonprofits, with a focus on youths and marginalized communities. After two full application cycles, Goddu said the board now has a clearer understanding of community needs and the capacity of nonprofits.  

She explained that the program is carrying a $3.5 million reserve into fiscal year 2026, due to early tax collection and lower-than-expected spending in its first year, particularly in school programs.  

To address this, the advisory board recommended a gradual spend-down of the reserve and an increase in grant amounts over the next four years. The plan aims to maintain a prudent reserve of $500,000 to $600,000 by 2029, in line with the city finance department guidelines.  

The board's budget scenario assumes steady tax revenue and includes increased funding for public school programming and organizational capacity building, while keeping administrative costs at 10% of annual revenue.  

Two funding pathways will continue: comprehensive grants for larger organizations and impact grants for smaller groups.  

Under the updated strategy, organizations applying for two-year comprehensive grants may request up to 20% of their average budget, with maximum awards rising from $75,000 to $85,000.  

For the impact grants, the cap will increase up to $50,000. 

This change is expected to benefit mid-sized nonprofits, which often lack the financial stability of the largest organizations but have year-round programming commitments.  

Goddu noted that some groups, such as the YWCA, have been affected by reductions in federal funding, making Inspire Olympia their most reliable source of support.  

During the meeting, council members focused their discussion on the matching requirement for smaller organizations.

Council member Kelly Green asked whether it created a burden for groups trying to get started. Goddu said most organizations can meet the match through a combination of grants, in-kind donations and volunteer time.  

Council member Jim Cooper voiced support for the recommendations, but reiterated his opposition to the matching requirement, calling it an unnecessary burden for small nonprofits.

He also raised the idea of using reserve funds for capital projects in the future. Goddu said the advisory board is open to considering the issue, as the program matures.  

The approved changes will apply to grants beginning in July 2026.