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 vromero@ncg.org