Legislature OK’s McNerney’s Bill to Boost Nonprofits

The California Legislature today approved State Sen. Jerry McNerney’s SB 1240, legislation that would help boost California nonprofit organizations in the wake of significant federal budget cuts. 

SB 1240 would establish the Office of Nonprofit Empowerment within the Government Operations Agency – a one-stop shop to improve nonprofits’ access to essential resources and help organizations navigate the often-complicated processes of state government.

“California nonprofits play a vital role in our economy and society, providing essential services and programs in education, health care, the arts, the environment, and more. Yet many nonprofits are struggling due to federal budget cuts, while also facing obstacles when dealing with our state government,” said Sen. McNerney, D-Pleasanton, chair of the Senate Select Committee on the Nonprofit Sector. “SB 1240 will provide a much-needed tool to ensure that nonprofit organizations thrive in California.”

SB 1240 passed the Senate today on a vote of 35-0 after it won approval in the Assembly on Wednesday on a 65-6 vote. The bill now goes to the governor’s desk.

SB 1240 is sponsored by the California Association of Nonprofits (CalNonprofits).

"By establishing the Office of Nonprofit Empowerment, California will make a clear, first-in-the-nation declaration that the health and well-being of our nonprofit sector is a top priority," said Geoff Green, CEO of CalNonprofits. "As our state's most trusted sector, nonprofits defend and protect Californians and our values in the face of a hostile and ever-changing federal landscape. This bill supports the sector that holds our communities together and ensures our safety net remains resilient. CalNonprofits appreciates Senator McNerney’s leadership in championing this bill through the Legislature, and we look forward to seeing it signed into law.”

California nonprofits are a major driver of the state’s economy, employing 1.7 million workers and producing 15% of the state’s gross domestic product. Currently, some 109,00 nonprofits operate in California.

But nonprofits are facing unprecedented challenges due to major budget cuts – and threatened cuts – from the Trump administration.

California nonprofits, especially smaller nonprofits, also often struggle to navigate the state’s bureaucracy, facing hurdles to access grants, having to complete redundant reporting requirements, and being forced to wait too long for reimbursements, according to a comprehensive report from the Little Hoover Commission.

SB 1240, in fact, adopts one of the recommendations of the Little Hoover Commission report – to establish a nonprofit liaison office within the governor’s office. The Office of Nonprofit Empowerment (ONE), created by SB 1240, would operate much like the Office of the Small Business Advocate and GO-Biz, which assist businesses throughout the state.

Sen. Jerry McNerney is chair of the Senate Revenue and Taxation Committee, and his 5th Senate District includes all of San Joaquin County and Alameda County’s Tri-Valley.