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CalNonprofits warns federal policy shifts and executive actions threaten services and funding
Summary
CalNonprofits presented sector research showing the scale of California's nonprofit economy and warned that executive orders, OMB guidance and attacks on the Johnson Amendment are creating funding uncertainty that could force nonprofits to scale back services.
Jeff Green, CEO of Cal Nonprofits, told the Select Committee the nonprofit sector is a major part of California's economy — roughly 110,000 public-charitable organizations statewide, millions of employees and substantial assets and revenue — and that recent federal actions have heightened uncertainty for nonprofits.
Green pointed to multiple federal developments: a spate of executive orders, an early OMB memo that paused or put federal funding at risk, efforts to undermine the Johnson Amendment, and HR 1's effects on federal safety-net programs. "There have been 270 executive orders in this term," Green said in his remarks as he traced how the combined pressure of funding cuts and administrative changes forces local nonprofits to fill gaps.
He also stressed survey results showing funding uncertainty: "Nearly 80% of organizations are saying we just are not certain what's coming," and roughly 17% of respondents feared they might not be operating next year without changes. Green urged state-level reforms to streamline contracting, expand access to advance payments and make state government a more reliable partner for nonprofits.
No formal committee action was taken on these recommendations during the hearing.
