Waiting for funding is most often not in the budget for many of California’s more than 110,500 nonprofit organizations. But when it comes to state payments, they’re basically told to take a number.
New legislation introduced by assemblymember Gregg Hart, however, would be the first in the nation to expedite and untangle the process through which community nonprofits receive funding from state grants and contracts.
Nonprofits rely on a reimbursement model for expenses and “are often placed in the challenging position of having to consider pursuing loans to cover costs associated with starting up state grants and contracts,” according to Hart’s office. “For example, one nonprofit paid over $28,000 in interest last year while waiting for payments from the state.”