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, a package of state bills that will strengthen the larger nonprofit ecosystem.
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 total costs, flexibility during emergencies, modernized online processes, start-up payments, and easing burdens for small grants.
Philanthropy California is proud to support this package of bills. We believe philanthropy has a critical responsibility to advocate for their grantees and the larger nonprofit ecosystem. These bills have all passed through their original chambers and have been assigned to their subsequent committees to be voted on, as listed below. We encourage you to use your voice to increase fairness and equity in government grant-making processes.
Learn more about the Bills
In the Senate Committee on Appropriations:
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Advance payments for all AB 590 (Hart): Ensures nonprofits can secure up to 25 percent of contracted funds upfront, prioritizing nonprofits serving vulnerable communities or those with modest reserves.
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Flexibility during emergencies AB 619 (Fong, V): Avoids disruption of community services during declared states of emergency by easing the contract modification process.
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Modernizes processes AB 696 (Lowenthal): Modernizes processes by allowing for online payments, digital signatures, and an online grants submission process.
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Streamlines small grant programs AB 860 (Valencia): Streamlines processes by reducing application and reporting requirements for grants of $20,000 or less and establishes new outreach efforts.
In the Assembly Committee on Appropriations:
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Standardizes indirect cost coverage SB 336 (Umberg): Requires the state to pay a nonprofit contractor its negotiated federal indirect cost rate (if it has one) and establishes a standard state rate of no less than 10 percent for nonprofit partners.
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Equity in prompt payments SB 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 (to be continued in the 2023-24 Session):
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Fairness in contracting AB 885 (Rivas, L): Requires the state to pay nonprofit partners the total costs of delivering programs and services – including administrative costs, fair wages, and benefits; also encourages multi-year contracts and expedited contract renewals.
Take Action
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Sign on in support of passing the California Nonprofit Equity Initiative bill package.
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Submit a letter in support of the bill package. We've created a template for you to adapt and send on behalf of your organization. Your support letters should be sent to the appropriate committees (listed above) and can be used again when the bills are being voted on by the whole chamber and considered by the Governor. Please feel free to reach out with any questions about this process!
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Advocate to support these bills using your communications and social media channels using this social media toolkit.
For more information or questions, contact Emily Michels, Manager, Public Policy & Government Relations, at emily@socalgrantmakers.org.
