Recently, Calnonprofits and the California Nonprofit Contracting Coalition introduced a collection of bills relating to nonprofit contracting and other services.These bills are collectively known as the California Nonprofit Equity Initiative. The goal is to increase equity with state nonprofit contracting, which was called for in a letter sent to legislative leaders and the Governor from over 500 nonprofits and community leaders.
The five bills that have progressed include:
- Equity in Prompt Payments SB 557: Amends the Prompt Payment Act to all state contracts and sets a discrepancy threshold
- Standardizing Indirect Cost Rates SB 336: Sets a minimum of 10% as an indirect cost rate and brings rates into alignment with federal rates
- Contract Flexibility in Emergencies AB 619: Simplifies the contract modification process during emergencies
- Streamlining Small Grant Programs AB 860: educes application and reporting requirements for small grants
- Advance Payments for All AB 590: Ensures nonprofits can secure up to 25% of contracted funds upfront. Priority goes to nonprofits that serve vulnerable communities or those that have limited reserves.
Learn more about the California Nonprofit Equity Initiative and how you can help here.
