Insurance Issues and Nonprofits: Meet the State Insurance Commissioner

Insurance is the third biggest expense for most nonprofits (after salaries and rent), yet it often still feels like unknown territory. In addition to understanding what coverage you need, there are unexpected policy issues that deeply influence the availability of insurance as well as cost. We are pleased to bring together nonprofits with California Insurance Commissioner Ricardo Lara, who was first elected to the position in 2018. As head of the California Department of Insurance, he oversees the "largest consumer protection agency in the state." Recording and slides will be emailed to all registrants after the webinar.

Thursday, July 29th from 1:30pm to 2:30pm (Pacific)
FREE but registration required
Register now!

On Monday, August 9, at 10 AM, CalNonprofits will join State Assemblymember Mike Gipson in his quarterly webinar with nonprofits in his district (AD 64).

CalNonprofits' Policy Director Lucy Salcido Carter and CA State Library Program Manager Shivani Bose-Varela will do a joint presentation on grantseeking opportunities for nonprofits and will include information about how to use the state grants portal. We sponsored the bill, AB 2252 (Limón, 2018), that brought nonprofits this amazing resource to use to find grant opportunities offered by state agencies.

If you are a nonprofit in Assemblymember Gipson's district and want to attend the webinar, please contact his district office at (310) 324-6408 for more information.

On Thursday, August 12, at 10 AM, CalNonprofits will join State Assemblymember Luz Rivas in a grantseeking webinar for nonprofits in her district (AD 39).

The webinar will cover public and private funding options for nonprofits and will include information about how to use the state grants portal. We sponsored the bill, AB 2252 (Limón, 2018), that brought nonprofits this amazing resource to use to find grant opportunities offered by state agencies. This webinar is being co-hosted by the Southern CA Grantmakers and will include presentations by private funders, a League of CA Community Foundations representative, CalNonprofits' Policy Director Lucy Salcido Carter, and CA State Library Program Manager Shivani Bose-Varela.

If you are a nonprofit in Assemblymember Rivas' district and want to attend the webinar, please contact her district office at (818) 504-3911 for more information.

Save the date!

2021 Policy Convention will be November 16-18 (check out the impressive speakers and engaging sessions at last year's 3-day event).

Become a member!

CalNonprofits members strengthen our collective voice in Sacramento and with philanthropy, and the public. Members also get exclusive benefits like free webinars, health insurance for employees and liability insurance for organizations from CalNonprofits Insurance Services, a free subscription to the human resources library and a hotline from Mineral (formerly ThinkHR), and much more!

Find out more and join online today, or contact Karina Paredes-Arzola at karinap[at]calnonprofits[dot]org or 415.710.4332 for more information.

Make sure you're on our mailing list!

You'll get updates about our events and celebrations, new government funding opportunities, and advocacy alerts when it's time for legislators and other policymakers to stand up for our communities. Sign up now!

On July 1, 2021, the U.S. Supreme Court published its decision in the Americans for Prosperity Foundation v. Bonta (Mr. Rob Bonta is the California State Attorney General) case, finding 6-3 against the Attorney General. The Court decided that the California Attorney General’s requirement that nonprofits file their IRS Schedule B form with the State is unconstitutional and a violation of the First Amendment right to freedom of association.

CalNonprofits filed an amicus ("friend of the court") brief in the case in support of the AG’s Schedule B requirement because we believe the information on the Schedule B form is important to protect against fraud, self-dealing, and other bad actions by organizations posing as nonprofits.

The AG uses the confidential information on the Schedule B to investigate possible wrongdoings by nonprofits and to prosecute when they have evidence of wrongdoing. The prosecution of wrongdoing by bad actors helps ensure that the public continues to trust the nonprofit sector. We want bad actors to be caught; we don’t want them using their tax-exempt status to engage in fraud or other illegal behavior.

A key question in the case was whether the Schedule B requirement was a burden on the right to freedom of association; in other words: would the State requirement of a list of large donors (through the Schedule B form) subject those donors to harassment in violation of their right to be associated with the nonprofit they are donating to?

Because only the AG can see that list of donors — since it is confidential and not made public — we believe there is no threat to those donors. And the advantages of being able to investigate fraud far outweighed any remote chance of the information becoming public.

Justice Sonia Sotomayor, in her dissenting opinion, which aligned with our brief, said that an assessment of the burden of the Schedule B requirement should be done to figure out whether the requirement was constitutional or not. But the Court majority, led by Chief Justice John Roberts, thought otherwise, and without assessing the burden, decided the Schedule B requirement was not narrow enough to accomplish the AG’s goals and still be constitutional.

Although we weren’t surprised by the outcome of the case, we are disappointed in the opinion and are concerned about its long-term consequences for our nonprofit community in California. We value the AG’s supervision of nonprofits and want to maintain the public trust that is so important for us as nonprofits to do the vital work we do in our communities.

As our CEO Jan Masaoka said in an interview with NPR, the AG is like the Federal Aviation Administration: just as the FAA needs information from airplane manufacturers and airlines to ensure safety and confidence in air travel, California and other states need information from charities to ferret out fraud and self-dealing.

And as Vox commented the day the Court published this opinion, July 1, was “a great day for dark money."

Read more:

CalNonprofits' official statement on the Court’s opinion

NPR story that includes a quote from Jan Masaoka, CalNonprofits’ CEO

From Vox: The Supreme Court just made Citizens United even worse

Our deep thanks to pro bono attorneys Ellen Aprill, Daniel Hemel, Anna-Rose Mathieson, and Rosemary Fei who worked with us on this widely circulated amicus brief. Read the full brief.

June 23, 2021 – Today, 110 California state legislators announced their selection of a “Nonprofit of the Year” in celebration of California Nonprofits Day. The 114 honorees range from nonprofits in health and food banks to nonprofits in music and sports, this annual effort – in its sixth year – creates a way for legislators to recognize an exceptional nonprofit in their district. You can download the press release and a complete list of honorees and legislators.

Watch the video messages from Senator Monique Limón, Assemblymember Luz Rivas, and CalNonprofits CEO Jan Masaoka!

Assembly Concurrent Resolution 80 authored by Assemblymember Luz Rivas (D-San Fernando Valley), the chair of the Assembly Select Committee on the Nonprofit Sector joined by Senator Monique Limón (D-Santa Barbara), chair of the Senate Select Committee on the Nonprofit Sector, proclaims June 23rd as California Nonprofits Day this year. As the voice for California’s nonprofits and a statewide policy alliance of more than 10,000 organizations, the California Association of Nonprofits (CalNonprofits) has been pleased to work with both chairs and their committees to raise the profile of California’s nonprofit sector.

“California nonprofits are a vital part of our economy,” said Assemblywoman Rivas. “The challenges of the past year have stressed how important nonprofits’ services are to our communities throughout the state. As someone who created and managed a nonprofit, I know how much passion, effort, and time it takes to run these essential organizations, even without the stresses of a global pandemic. I want to thank our nonprofits across the state for stepping up during a critical time of need. I am proud to author ACR 80, which recognizes and celebrates California Nonprofits Day.”

“As Chair of the Senate Select Committee on the Nonprofit Sector, I want to congratulate all of this year’s nonprofit of the year honorees! You are all examples of the powerful, life-changing impact that California nonprofits have on our communities, and you deserve to be recognized for your efforts,” remarked Senator Limón.

“I also want to recognize your resiliency during this challenging time,” Senator Limon continued. “You have stepped up to provide families with essentials, were on the front lines of keeping our communities safe, and found ways to adjust your mission to ensure our communities continue to thrive.”

The recognition as a Nonprofit of the Year brings deserved attention to outstanding nonprofits while illustrating the remarkable diversity and vibrancy of California's nonprofit community. Honorees this year include organizations like: Stop AAPI Hate selected by Assemblymember David Chiu (D-San Francisco), Family Assistance Ministries honored by Senator Patricia Bates (R-Laguna Niguel), High Fives Foundation chosen by Assemblymember Megan Dahle (R-Truckee), and Fresno Freedom School selected by Senator Melissa Hurtado (D-Fresno)— to name just a few of the more than one hundred honored organizations.

“The pandemic and shelter-in-place orders that are starting to lift have put nonprofits — usually hidden in plain sight — in the spotlight,” explains Jan Masaoka, CalNonprofits CEO. “By selecting an organization to recognize as a Nonprofit of the Year, our elected officials celebrate the good work they see nonprofits doing in their districts and ensure communities see and appreciate the collective impact nonprofits are making.”

California’s nonprofits have continued to step up for their communities during the pandemic as they always do, but have also been adversely impacted by the crisis. Nonprofit health clinics, food banks, senior nutrition programs, and other essential services continue to work far beyond their usual capacity. Across the nonprofit community, 32% of nonprofits have been forced to reduce activity below 50%, and 14% have completely shut down. Many nonprofits are suffering deep financial losses from a drop in earned income, and despite some temporary relief from federal loan and state relief programs, will be laying off staff once those loan funds are expended.

According to “Causes Count,” a 2019 report by CalNonprofits, the nonprofit sector is the 4th largest employer by industry in the state, employing more than 1.2 million people. Each year, California nonprofits generate more than $273 billion in revenue and bring in $40 billion in revenue from outside of California. The unpaid volunteer labor mobilized for nonprofits in service to communities is equivalent to 330,000 full-time jobs every year.