A new California bill introduced by State Sen. Jerry McNerney seeks to protect the state’s nonprofit sector from federal budget cuts enacted by the Trump administration.
The legislation, SB 1240, aims to shield California’s nonprofits from funding freezes and program reductions that have affected social services statewide. The bill is supported by CalNonprofits, an organization based in San Francisco that works with lawmakers, advocates, and nonprofit leaders to advance the health and effectiveness of California’s nonprofits. According to the Davis Vanguard, CalNonprofits also seeks to create a formal bridge between government and the nonprofit sector.
Geoff Green, CEO of CalNonprofits, said, “just as businesses can turn to the Office of the Small Business Advocate or GO-Biz, a dedicated office like this will strengthen nonprofit-government relations as well as the communities we both serve.”
If passed, SB 1240 would establish the Office of Nonprofit Empowerment within the governor’s office. This office would improve nonprofits’ access to resources and help them navigate state government. McNerney said, “California nonprofits play a vital role in our economy, providing essential services and programs in education, health care, social services, the arts, the environment, public safety, and more. But with significant cuts coming from the federal government, nonprofits are fighting for their survival.”
Currently about 109,000 nonprofits operate throughout California employing 1.7 million workers and producing 15% of the state’s gross domestic product. The bill follows recommendations from the Little Hoover Commission report calling for a nonprofit liaison office within the governor’s office.
The Office of Nonprofit Empowerment would coordinate interagency collaboration and facilitate partnerships between state agencies and nonprofits. It is mandated to report on its progress by March 2027. SB 1240 encourages reforms such as advance payments for contracts and grant programs focused on small organizations serving historically marginalized communities. The bill is expected to be heard by a Senate committee in coming weeks.
