Nonprofit Equity

$35,425

Average pay for a nonprofit civic and social services worker. This amount isn’t enough for two parents each earning that amount to raise a child in LA.

23%

Percentage of City of Los Angeles jobs that are nonprofit jobs (approximately 606,400 jobs).

78%

Percent of surveyed nonprofits that cited long-term financial sustainability as their top challenge.

Government needs to overhaul how they work with nonprofit partners who deliver critical services to those most in need

Nonprofit organizations have helped lead the response to the homelessness crisis, economic inclusion, education justice, community safety, and more — and they need our help now.

Community-based organizations (CBOs) are essential infrastructure and a catalyst for a more inclusive and just society. The nonprofit sector is an advocate, safety net, job creator, innovator, and voice for those who have been historically marginalized, discriminated against, and flat-out left out.

Unfortunately, too many nonprofits face persistent challenges, limiting their ability to deliver critical services to those most in need. Bureaucratic barriers in contracting processes and inadequate compensation have created an unfair, inequitable, and debilitating partnership between nonprofits and the City and County of Los Angeles.

“If we are to have a transformative recovery resulting in greater equity, justice, and opportunity, it must be measured by the growth and resiliency of our nonprofit sector.”

– Efrain Escobedo, Chair of Nonprofit Equity Action Team

OUR VISION

We envision a fair and equitable partnership between nonprofits and government, in which nonprofits are recognized as essential infrastructure and partners that help ensure that public resources advance equity and provide communities resources and services to thrive.

Compared to organizations outside of LA County, LA nonprofits wait longer to be reimbursed by the government, often waiting 60 days or more. In addition, it’s vital to fully compensate nonprofits so that they can pay living wages to staff, manage inflation, and grow sustainably so they can further their impact on their community.

A fair and equitable partnership requires an investment in the health and well-being of our social impact sector, not just an extractive relationship. This means adequate compensation, investment in organizational infrastructure and capacity needs, and caring administration. A thriving nonprofit sector means thriving communities.

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OUR CALL TO ACTION

Join us in calling for our government leaders to advance a new deal with the nonprofit sector. The nonprofit sector serves as essential infrastructure for our communities by meeting the needs of our region’s most vulnerable.

We call for the City, County, and all government agencies to:

Evolve and change its contracting, auditing, and reimbursement practices in accordance with our sector’s role.
Provide full, fair, and prompt compensation to nonprofits through equitable contracting practices.
Establish an accessible and responsive funding process that cuts the red tape. Reducing the administrative burdens on nonprofits allows them the capacity to meet demand for social and supportive services.