Strengthening Nonprofit Capacity for Puerto Rico's Energy Resilience Transformation
After the U.S. Department of Energy chose the Hispanic Federation to lead education, training, and consumer protection efforts for the Puerto Rico Energy Resilience Fund, the organization faced a key challenge. They needed to help nine local nonprofits, known as Solar Ambassadors, build their administrative and compliance skills so they could connect vulnerable households to solar and battery storage systems.
On Point Strategy worked with the Hispanic Federation to provide specialized technical assistance and capacity-building support, rapidly enhancing fiscal manuals, internal controls, and governance policies for all nine organizations. Together, we established standardized compliance frameworks aligned with 2 CFR 200 (Uniform Guidance), provided focused training on federal financial management, and delivered risk-based technical assistance. This helped the community organizations manage Department of Energy (DOE) funding and support Puerto Rico’s move to distributed, resilient renewable energy.
The
Project
Puerto Rico Energy Resilience Fund – Solar Education Program Capacity Building
Quick Facts
Project Completed:
Location:
Client:
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Subrecipients:
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The project provided in-depth technical support to help community-based organizations prepare for federal grant management, working under the guidance of the DOE's Grid Deployment Office. This included:
- Reviewing and improving fiscal manuals for nine nonprofit organizations
- Developing internal control frameworks and putting the segregation of duties into practice
- Establishing governance policies that follow 2 CFR 200 (Uniform Guidance)
- Designing tailored work plans to strengthen each organization's capacity
- Providing focused training sessions on financial management and procurement standards
- Educating organizational leaders and administrative teams about compliance requirements
- Implementing a technical assistance model based on risk assessment
- Developing and validating standardized tools for all nine organizations
The
Challenge
When the Hispanic Federation started the DOE-funded Solar Education Program, one of only two groups selected nationwide for beneficiary education and consumer protection under the Puerto Rico Energy Resilience Fund Topic Area 3, it soon noticed big differences in capacity among its nonprofit partners:
Capacity Disparities
The nine Solar Ambassador organizations had varying levels of administrative experience and skill in managing federal grants. Because of this, each group needed its own assessment and tailored support, rather than a one-size-fits-all approach.
Federal Compliance Complexity
Managing DOE funding required following 2 CFR 200 Uniform Guidance, DOE rules, and PR-ERF program requirements. These rules were more complicated than what most community-based organizations focused on direct service were used to handling.
Segregation of Duties Gaps
Many small nonprofits lacked formal internal controls, clear accounting categories, or written procurement procedures. This created audit and compliance risks that could jeopardize the program and future federal funding.
Governance Strengthening Needs
Leaders needed to better understand federal financial management, allowable costs, and compliance rules. This knowledge would help them manage public funds responsibly while staying focused on energy resilience and consumer protection.
Sustainability Imperatives
Capacity-building efforts were needed to create lasting change within organizations, not just to provide short-term fixes. This would help them stay compliant, pass federal reviews, and independently apply for future funding.
The
Solution
On Point Strategy used a risk-based approach to build capacity and improve readiness in all nine Solar Ambassador organizations.
Individualized Capacity Assessments
We reviewed each organization's fiscal manuals, internal controls, and governance policies in detail. Then, we created custom work plans based on their maturity, resources, and compliance needs.
Fiscal Infrastructure Enhancement
We reviewed and improved financial management systems, establishing clear processes for separating duties, classifying accounts, and managing procurement. These changes met 2 CFR 200 standards and were practical for small community organizations.
Governance Policy Development
We developed governance policies covering conflict of interest, records retention, whistleblower protection, and allowable costs. We made sure these policies turned complex federal rules into practical tools that nonprofit leaders could use.
Targeted Training Delivery
We designed and led training sessions on financial management, procurement standards, and compliance. This helped leaders and staff use best practices throughout their programs.
Standardized Tool Implementation
We developed capacity-building plans and standardized compliance tools for all nine organizations. This set up consistent methods for documenting, reporting, and monitoring, making oversight and accountability easier for the Hispanic Federation and the DOE.
Risk-Based Technical Assistance Model
We established ongoing technical assistance that focused on high-risk compliance areas and encouraged early problem-solving. This helped local organizations manage federal funds on their own while still having expert support.
The
Impact
The collaboration led to several measurable improvements in organizational resilience and program readiness.
9 nonprofit
organizations
equipped with enhanced fiscal and governance
100%
of organizations achieved validated capacity-strengthening plans
Standardized
Compliance tools and frameworks implemented across entire portfolio
Strengthening audit readiness
We set up clear documentation practices and internal controls that align with DOE Grid Deployment Office monitoring expectations and federal audit requirements.
Enhancing financial stewardship
We defined roles, responsibilities, and accounting systems that support transparent management and reporting of federal funds.
Building leadership capacity
We equipped organizational leaders with federal compliance knowledge and skills to successfully deliver programs and compete for future funding opportunities.
Promoting institutional sustainability
We implemented a risk-based support model that fosters long-term accountability, transparency, and organizational resilience beyond the initial capacity-building phase.
Lasting Value
In addition to providing technical assistance, On Point Strategy helped build lasting capabilities that made the project's impact go further.
Replicable Capacity-Building Framework
The tailored assessment methods, custom work plan templates, and standard compliance tools gave the Hispanic Federation a system they can use again. This makes it easier to bring on new Solar Ambassadors or to support future DOE-funded projects without having to start over each time.
Institutional Knowledge Transfer
Training programs and hands-on support helped staff in each of the nine organizations build skills in federal grants management, financial compliance, and governance. These new abilities will help with daily operations and future federal projects.
Process Standardization
OPS established consistent formats for fiscal manuals, procurement procedures, and governance documents across all organizations. This helped the Hispanic Federation use the same oversight and reporting systems across its operations, making it easier to manage the complex program.
Risk Mitigation Infrastructure
By establishing clear roles, internal controls, and compliance checks, the project created lasting mechanisms to manage risk. This helps reduce audit issues, avoid compliance problems, and protect both reputation and federal eligibility.
Strategic Positioning
Showing strong federal compliance made all nine Solar Ambassador organizations more credible and competitive. This puts them in a better position for future DOE, FEMA, and other federal funding, while also helping Puerto Rico reach its energy resilience goals.
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