The California Nonprofit Initiative
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. The package addresses nonprofit needs such as coverage of total costs, flexibility during emergencies, modernized online processes, start-up payments, and easing burdens for small grants. As of October 2023, three bills, all related to how nonprofits are paid, were voted through the Appropriations committee and now await final floor votes while the remaining bills were not passed or vetoed.
Why It Matters
SCG believes philanthropy has a critical responsibility to advocate for their grantees and the larger nonprofit ecosystem. Improving how state government contracts with nonprofits is essential for equity – for our most vulnerable communities and for the sustainability of nonprofits. We believe in advancing public policy that nurtures our nation’s philanthropic and nonprofit sectors to strengthen and grow our civil society. Many nonprofits feel as though they are treated like an afterthought, often lumped in with small businesses but not afforded the same opportunities for funding or economic data collection to learn about growth in their sector. At the most basic level, the pandemic demonstrated why the nonprofit sector — which accounts for 6% of the country’s GDP and employs over 12 million workers — must have a voice and decision-making power at the federal level. When nonprofits play a critical role nationwide in helping people access resources and services, supporting the economic mobility of historically underserved communities, and identifying and responding to immediate and long-term needs, it is essential that they have a voice and decision-making power at the federal level.