Hi everyone, Elsa Tamayo here, intern at Nonprofit Connection Santa Cruz County! I recently read an article by Ray Cancino of Community Bridges, published in the Santa Cruz Sentinel, that highlighted some of the financial challenges facing nonprofits in California. I wanted to share why this issue is so important for all of us.
Nonprofits in California play a crucial role in supporting our communities: from helping families access food to providing critical services for seniors. However, many organizations are facing financial strain, particularly because of delayed payments from the state. For instance, Community Bridges, which serves thousands of people in Santa Cruz, San Benito, and Monterey counties, often has to front operational costs while waiting for reimbursement.
This is where Assembly Bill 880 (AB 880 State government grants and contracts: payment of claims and grantees’ indirect costs) comes in. The bill seeks to address two major issues: delayed payments and the lack of reimbursement for indirect costs, such as rent and administrative support. Right now, for-profit contractors are reimbursed for these costs, but nonprofits are often left to cover them through private donations. AB 880 would level the playing field by ensuring that nonprofits are paid on time and reimbursed for these essential operating expenses.
These changes could make a significant difference. By improving payment timeliness and covering indirect costs, AB 880 would help nonprofits maintain stability and continue to serve the community. Best of all, the bill offers these solutions without adding extra costs to the state.
Nonprofits are already facing a tough environment, with rising costs and shifting policies that threaten vulnerable communities. Without changes like those proposed in AB 880, California risks undermining the organizations it relies on to deliver essential services.
If you believe in supporting nonprofits, now is a great time to learn more about AB 880 State government grants and contracts: payment of claims and grantees’ indirect costs and consider sharing this message with others. It’s an important step toward ensuring that nonprofits have the resources they need to keep doing their vital work.