Advocating for a Sustainable Nonprofit Sector

Together with Philanthropy California (a statewide alliance​ ​of Northern California Grantmakers, SoCal Grantmakers, and Catalyst of San Diego & Imperial Counties)​,​ we’re championing a sustainable nonprofit sector by supporting the California Nonprofit Equity Initiative. This package of state bills will support and strengthen the larger nonprofit ecosystem. ​We’re proud to support this package of bills. Philanthropy has a critical responsibility to advocate for their individual grantees and the larger nonprofit ecosystem. ​ We encourage you to learn more below and use your voice to bring more fairness and equity to government grant-making processes. ​​ 

​​The California Nonprofit Initiative is a package of ​​seven California state bills currently pending in the legislature that will improve and strengthen the state government’s partnerships, contracts, and processes with nonprofits. These bills were developed by a coalition of nonprofits and CalNonprofits​,​ who came together last year to advocate for improved government-nonprofit partnerships through key recommendations. The package addresses nonprofit needs such as coverage of full costs, flexibility during emergencies, modernized online processes, start-up payments, and easing burdens for small grants. ​These bills have all passed through their original chambers and have been assigned to their next committees to be voted on, as listed below.​​​​​​ 

​​Learn more about the Bills

• Advance payments for allAB 590 (Hart): Ensures nonprofits can secure up to 25​ ​percent of contracted funds up front, with a priority on nonprofits serving vulnerable communities or those with modest reserves.​ 

• Flexibility during emergenciesAB 619 (Fong, V): Avoids disruption of community services during declared states of emergency by easing the contract modification process.​ 

• Modernizes processesAB 696 (Lowenthal): Modernizes processes by allowing for online payments, digital signatures, and an online grants submission process​.​  

• Streamlines small grant programsAB 860 (Valencia): Streamlines processes by reducing application and reporting requirements for grants of $20,000 or less and establishes new outreach efforts.​ 

• Standardizes indirect cost coverageSB 336 (Umberg): Requires the state to pay a nonprofit contractor its negotiated federal rate (if it has one), and establishes a standard state rate for nonprofit partners of no less than 10 percent.      

• Equity in prompt paymentsSB 557 (Limon): Extends the Prompt Payment Act to all state contracts with nonprofits, sets a discrepancy threshold for delaying payments, and removes the eligibility cap on nonprofit contracts.​ 

​​​Two-Year Bills:​​ 

• Fairness in contracting AB 885 (Rivas, L): Requires the state to pay nonprofit partners the full costs of delivering programs and services – including administrative costs, fair wages, and benefits; also encourages multi-year contracts and expedited contract renewals.      ​​     ​​ 

Take Action: 

• Sign on in support of passing the California Nonprofit Equity Initiative bill package. 

• Advocate to support these bills using your communications and social media channels using this social media toolkit. 

For more information or questions contact, Viridiana Romero, Manager of Strategic Initiatives at [email protected]