CDS Funding
CDS, Strategy & Survival:
Funding Smarts for Hawaiʻi Nonprofits
In the ever-changing world of nonprofit funding, staying ahead requires adaptability, persistence, and strategic planning. At a recent event hosted by Changemakers Hawaiʻi, fundraising professionals and nonprofit leaders gathered to discuss Congressionally Directed Spending (CDS) and how Hawaiʻi-based organizations can navigate the complexities of federal funding.
UNDERSTANDING CDS: WHAT IT MEANS FOR HAWAIʻI’S NONPROFITS?
CDS is federal funding allocated by Congress for specific local projects, allowing elected officials to bring resources directly into their communities. Unlike other federal grants, CDS requires congressional advocacy, meaning your local representatives must support your request before the funds are allocated. While this increases the chances of receiving funding, it also introduces an added layer of political unpredictability.
As our guest speaker from Senator Hirono’s office explained, CDS differs from traditional grant applications in that it is an ongoing conversation rather than a one-time submission. Engaging with legislative staff early and often can strengthen applications and help organizations align their proposals with congressional priorities.
Click image to watch ChangeMakers Hawaiʻi’s webinar.
IS CDS FUNDING "REAL MONEY"?
Yes! However, even after receiving approval from a Senator, funds are not guaranteed until final appropriations are passed. As one speaker emphasized, organizations can secure congressional approval only to be cut from the final budget during negotiations. This highlights the importance of having a solid funding strategy beyond CDS.
ADAPTING TO A SHIFTING POLITICAL CLIMATE
In today’s political climate, how you frame your proposal matters. Some language that resonated in the past—such as “systemically underserved”—may not be as effective in a bipartisan environment. Instead, proposals that emphasize “community resiliency,” “self-sufficiency,” or “lessening reliance on foreign imports” may have a better chance of being funded.
For Hawaiʻi-based organizations, aligning proposals with economic growth, food security, and workforce development can help secure support. For instance, a project focused on Native Hawaiian entrepreneurship could be framed as enhancing local economic stability rather than solely addressing historical inequities.
THE PROCESS: STEPS TO APPLY FOR CDS
1. Identify the Right Federal Department
Each Senator’s portal categorizes funding requests by federal department (e.g., USDA, Small Business Administration, Department of Commerce). The first step is determining which department aligns with your project.
2. Engage Congressional Staff Early
Both Senator Schatz and Senator Hirono have dedicated staff who assist organizations in refining their proposals. Sending a short paragraph describing your project early in the process allows their offices to provide guidance on eligibility, strategy, and next steps. Links are in the webinar above.
3. Utilize the Right Language
Using terms that align with congressional and federal priorities increases your chances of success. Examples include:
Instead of “serving underrepresented populations”, say “building economic self-sufficiency in Hawaiʻi’s communities.”
Instead of “reducing disparities”, say “expanding local business development to reduce dependence on external markets.”
Instead of “supporting social programs”, say “investing in workforce development to strengthen Hawaiʻi’s economy.”
4. Prepare for Delayed Funding
CDS funding can take over a year to be disbursed. Organizations must be financially prepared to wait up to 18 months before receiving funds. This means having a strong cash flow plan or securing bridge funding from a Community Development Financial Institution (CDFI).
RESOURCES AVAILABLE: CHANGEMAKERS HAWAII’S SUPPORT FOR NONPROFITS
Recognizing that many Hawaiʻi nonprofits lack dedicated fundraising staff, Changemakers Hawaii provides free grant-writing support through their Philanthropono Program. Participants in this program receive professional training in grant writing and must complete community service hours assisting nonprofits.
If your organization needs help drafting, reviewing, or refining a CDS application, reach out to Changemakers Hawaii to be matched with a grant writer at no cost. For more information about philanthropono, click here.
LESSONS FROM THE EVENT: WHAT WE CAN TAKE AWAY
Relationships Matter – CDS is a conversation, not a one-time submission. Engage with congressional staff early and frequently.
Language is Key – Frame your proposal with language that resonates with today’s political climate.
Think Big – CDS is designed for large-scale funding requests (six to seven figures). If your project is too small, consider expanding your vision.
Plan for Delays – If your organization urgently needs funding, CDS may not be the best fit. Have alternative funding sources in place.
The funding landscape is constantly evolving, but with strategic planning and community support, Hawaiʻi’s nonprofits can successfully navigate these challenges. Whether applying for CDS or any other funding opportunity, the key is to stay proactive, engage partners, and be adaptable in framing your impact.
For those who couldn’t attend, Changemakers Hawaii has made resources available, including a grant-writing starter kit and direct contacts for congressional staff. Links are in the webinar video above.
Need support for your funding application? Contact Becky at Changemakers Hawaii to get connected with a grant writer today!