LA County Board Of Supervisors Approves Resolution To Improve Nonprofit Service By Covering 'Reasonable' Costs

Nov 03, 2015, 17:43 ET from Weingart Foundation

LOS ANGELES, Nov. 3, 2015 /PRNewswire/ -- The Los Angeles County Board of Supervisors today [unanimously] approved a motion by Supervisors Hilda L. Solis and Sheila Kuehl to strengthen nonprofit service by supporting implementation of new federal rules governing how government agencies reimburse nonprofits for the full cost of their work.

"Los Angeles County is home to more nonprofits than any county in our country, and they play a vital role in our communities," Solis said. "Nonprofits provide critical services that help many of our neediest residents. By ensuring we are covering the full and reasonable cost for their services, we can help our nonprofit partners better serve their constituents and fulfill their important and irreplaceable missions."

Under the motion, the County's Chief Executive will provide the Board an implementation strategy within 120 days, consult with County nonprofit leaders and send a letter from the Supervisors urging State leadership on the rules. The action is the first of its kind in the country.

"I congratulate our Supervisors for taking this critical step," said Fred Ali, President and CEO of Weingart Foundation. "These rules provide significant reforms, including ensuring that nonprofits receive more support for the real cost of their services. This lack of support too often keeps nonprofits from achieving the outcomes that help those in our community who are most in need."

Weingart, the California Association of Nonprofits and California's three leading regional grantmaking associations have collaborated on the California Full Cost Initiative to educate funders and nonprofits about the rules, known as the Uniform Guidance, since their December 2014 release.

Jan Masaoka, CEO of CalNonprofits, stressed the importance of greater collaboration between nonprofits and their funders.

"Our goal is to increase the effectiveness of nonprofits and ensure that public money has the greatest, most positive impact in our communities," Masaoka said.

The Board's action follows the release of an Urban Institute report highlighting problems California nonprofits face managing government and private grants. Roughly 70% say government funding fails to cover the real cost of services.

Weingart Foundation's mission is to build a better Southern California by supporting nonprofits to more effectively serve the underserved: CalNonprofits, a statewide policy alliance of nearly 10,000 organizations, speaks out for the nonprofit community to the legislature, philanthropy and public.


SOURCE Weingart Foundation