Assemblymember Valencia’s bill streamlining small nonprofit grants clears Assembly

SACRAMENTO- Today, Assembly Bill (AB) 860 by Assemblymember Valencia (D-Anaheim) passed the Assembly Floor with unanimous bipartisan support.  AB 860 improves and streamlines small nonprofit grants.

California depends on the nonprofit sector for service delivery to help the unhoused, build affordable housing, respond to the impacts of climate change, support domestic violence victims, and, in countless ways, improve the lives of vulnerable members of our communities. During the COVID-19 pandemic, nonprofits across the state stepped up to meet the needs of our most vulnerable communities, and continue to do so. In order to maintain a healthy nonprofit sector, the state must address the inequalities associated with applying for and receiving small state grants.

Nonprofits spend an inordinate amount of time on grant applications and reports, which can distract them from mission-critical work. As a result, many nonprofits, especially smaller ones, struggle to access government contracts because they lack the knowledge, time, or capacity. These challenges are accentuated in smaller nonprofits and those in rural and marginalized communities.

“Nonprofits continue to deliver services and resources to our communities who are in need of assistance, without hesitation and with love and care. We must now ensure the state is being an equitable ally and strengthen our essential partnership with nonprofits,” said Assemblymember Valencia.

"The California Association of Nonprofits (CalNonprofits) applauds Assemblymember Valencia for leading this effort to expand access and simplify state grant processes for nonprofits for small grants. AB 860 is especially important to address inequities facing smaller nonprofits operating in rural areas, poor communities, and communities of color" said CEO of CalNonprofits, Jan Masaoka.

AB 860 is part of the California Nonprofit Contracting Equity Initiative aimed at strengthening the essential partnership between the state and nonprofits to benefit all Californians, particularly our most vulnerable residents. AB 860 is supported by over 500 nonprofit and community leaders who recognize the necessity to improve the existing grant contracting terms so nonprofits can thrive.