HomeMy WebLinkAboutStaff Report 2502-4179CITY OF PALO ALTO
Policy & Services Committee
Special Meeting
Tuesday, March 11, 2025
6:00 PM
Agenda Item
1.Nonprofit Partnership Workplan: Phased Approach (continued from February 11, 2025)
Staff Presentation
Policy & Services Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: March 11, 2025
Report #:2502-4179
TITLE
Nonprofit Partnership Workplan: Phased Approach (continued from February 11, 2025)
RECOMMENDATION
Staff recommends the Policy & Services Committee review and recommend City Council
approval of a phased approach to enhancing nonprofit partnerships, beginning with process
improvements for nonprofit requests for funding through the FY2026 City Budget that fall
outside currently established funding processes.
BACKGROUND
On February 11, the Policy & Services Committee discussed the proposed Phase 1 Nonprofit
Partnership Workplan, establishing a means of handling nonprofit funding requests that fall
outside established funding processes. The Committee discussed and provided feedback on
funding availability, eligibility and criteria, application and evaluation process and timeframe, as
well as monitoring and reporting components.
The Policy & Services Committee directed staff to further engage nonprofit partners on their
preference regarding two options relating to application and grant award timelines.
This report shares feedback received from nonprofits as well as a draft application process
reflecting the Committee‘s feedback on the various program elements.
ANALYSIS
On February 26, 2025, staff held a drop-in session for nonprofits to share feedback on the two
program implementation timeframes:
Option 1 (39-day nonprofit application period, grant awards approved on June 16)
Action Date
P&S recommendation to proceed with NPW Phase 1 March 11
City Council approval to proceed with NPW Phase 1 March 17
City release of a Notice of Funding Availability to local Nonprofits April 1
Proposals for funding due from Nonprofits May 9
P&S review and recommend awards June 10
City Council budget adoption includes funding appropriation and grantees June 16
Option 2 (90-day application period, grant awards on August 25)
Action Date
P&S recommendation to proceed with NPW Phase 1 March 11
City Council approval to proceed with NPW Phase 1 April 14
City release of a Notice of Funding Availability to local Nonprofits (90 days)May 1
Budget adoption includes funding allocation for NPW Phase 1
implementation
June 16
Proposals for funding due from Nonprofits July 30
P&S review and recommend awards August 12
City Council reviews and approves funding awards August 25
These timelines reflect the suggestion of a Policy and Services Committee meeting to review
and recommend grant awards to the City Council.
At the time of the publishing of this report, the five nonprofits who attended the meeting or
sent their preference via email voted for Option 1, which included a vote from the Chamber of
Nonprofits who represents about 30 nonprofits. Staff received an email from one nonprofit
who preferred Option 2. Staff will note any additional responses received and update the
Committee during the March 11, 2025 meeting.
Attachment A includes a draft program application that reflects the Policy & Services
Committee’s feedback on the various application elements and the Nonprofit Partnership
Guiding Principles. These are:
Impact-oriented Focus and Accountability
Service Alignment
Fairness, Open Access, Equity, and Inclusion
Flexibility for Special Circumstances
The application and reporting requirements will be scaled to match the proposed thresholds:
> $5,000
$6,000-$25,000
$26,000-$99,000
$100,000+
Evaluation
As an option to assist the Policy & Services Committee in evaluating applications, staff could use
a rubric to screen and score applications, while providing the Committee final discretion over
decisions. In the first year of implementation, the scoring would be relative to other requests.
In the second year of the program, with a better sense of application requests, staff could
recommend improvements to the rubric.
Suggested categories could include:
Criterion Description Weight
1. Community Reach Measures the number of Palo Alto residents served
and the significance of the services.
30%
2. Equity Impact Assesses whether the organization serves
underserved or underrepresented groups.
30%
3. Alignment with Goals Evaluates alignment with the Council’s Priorities 20%
4. Program Sustainability Assesses the nonprofit’s capacity to deliver and
sustain its programs effectively.
20%
Staff requests Committee feedback on program application and evaluation proposal; and
recommend that Council implement the Nonprofit Partnership Phase 1 approach.
FISCAL/RESOURCE IMPACT
No resources are required to support the discussion outlined in this report. Subject to City
Council approval to fund the proposed NPW Phase 1 in the FY 2026 budget, the Citywide Events
and Programming appropriation established by Council would be involved. Specifically, the FY
2025 Adopted Budget provided $246,000 in funding for the following citywide events and
programming: United Nations Association Film Festival ($45,000), 3rd Thursdays ($40,000),
Magical Bridge ($150,000), and Environmental Volunteers Foothills Nature Preserve ($11,000).
Ongoing, $235,000 would be budgeted annually to fund citywide events and programming, and
staff was tasked with developing a process in FY 2025 to evaluate and allocate the ongoing
funding for citywide events and programming. As part of the FY 2025 budget wrap-up meeting
with the Finance Committee, discussion occurred regarding the administrative responsibilities
for developing a funding process for these cultural events, including reviewing applications,
invoices, receipts, and processing payments, which could be managed by staff within the
Community Services Department. No additional resources were added for FY 2025; however, if
the program expanded in future years, additional staff resources may be required to sustain the
increased workload, assuming 1.0 Administrative Associate III at a cost of approximately
$125,000 annually.
STAKEHOLDER ENGAGEMENT
Stakeholder engagement is underway with nonprofit partners through dedicated listening
sessions to gather feedback on the principles of the nonprofit framework and proposed
Nonprofit Workplan. A nonprofit “drop-in” session was held on February 26, 2025 to gather
feedback and answer questions regarding the Phase 1 implementation options and other
aspects of the plan.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by the California Environmental Quality
Act (CEQA). CEQA Guidelines section 15378(b)(2).
ATTACHMENTS
Attachment A: Draft Nonprofit Partnership Phase 1 Grant Application
APPROVED BY:
Ed Shikada, City Manager
Nonprofit Partnership Phase 1 Grant Application
ORGANIZATION INFORMATION
Are you a 501 (c)(3) nonprofit organization? Yes
No
Organization Name Year Funded EIN (Tax ID#)
Contact Person Title
Email Address Phone Number
Mailing Address Website
ABOUT YOUR ORGANIZATION
What is the mission of your organization?
Number of Employees Full-Time Staff____
Part-Time Staff___
Volunteers___
In the last two years, have you been awarded a grant or other direct funding by the City? If so, explain.
Are you qualified to apply for the Human Services Resource Allocation Program (HSRAP), Community Development
Block Grant (CDBG), or Emerging Needs grant programs? If so, did you apply? Explain why or why not.
PROGRAM & COMMUNITY IMPACT
Total Number of people estimated to be served by this
program:
Total number of Palo Alto residents estimated to be served by
this program:
Total number of Palo Alto residents estimated to be served by
your agency:
Total number of unduplicated Palo Alto residents estimated
to be served by the requested funding amount:
EQUITY IMPACT
Does your organization serve historically underrepresented or underserved populations? If yes, please describe. (ex.
Number or percent of demographic populations)
What measures does your organization take to promote services to underserved populations?
Social Media Website
Location of program/services Direct mail
Other: (Please describe)
ALIGNMENT WITH CITY COUNCIL PRIORITIES
Briefly describe how your request supports one or more of the City Council Priorities (2-3 sentences). If not relevant
indicate with “N/A.”
Climate Action and Adaptation & Natural Environment Protection:
Economic Development and Retail Vibrancy:
Implementing Housing Strategies for Social & Economic Balance:
Public Safety, Wellness & Belonging:
PROGRAM GOALS
Please use the template below to list up to 3 goals related to the program(s) you are proposing with requested funding.
For each goal identify 1-3 strategies your organization will implement to achieve this goal. For each strategy, provide
an objective and an outcome. Attach your Program Goals.
Example:
Goal: A general statement about the desired long-term impact.
Example: "Enhance STEM education access for underrepresented middle school girls in underserved areas.”
Strategy: The overall approach or method used to achieve the goal.
Example: "Partner with local schools to develop and deliver hands-on STEM workshops led by female science
professionals.”
Objective: Specific, measurable actions that need to be completed to reach the goal. Example: "Train 20 female
STEM professionals to facilitate workshops reaching 100 middle school girls per year.”
Outcome: The positive change or result that occurs as a direct consequence of the project activities. How will
you know that the strategy is successful?
Example: "An increase in the number of girls expressing interest in pursuing STEM careers post-workshop
participation.”
PROGRAM SUSTAINABILITY
What % of your organization’s budget is currently funded by the following:
Government Grants_____
Private Donations______
Fundraising ______
Membership Fees_____
Fees for service_____
Other_____
What percentage of your organization’s annual budget does the grant request represent?
•Annual Budget: $____
•Grant Request Amount: $____
•Percent of Budget: (Grant request/Annual Budget) x100 = ___%
If awarded, will the contribution be used to leverage other funding opportunities? Explain (1-2 sentences).
REQUIRED ATTACHMENTS
•Program Goals •IRS Determination Letter (501 (c)(3) status proof
REPORTING REQUIREMENTS – (Section in development)
Requests of up to $5,000- brief annual report (1-2 pages) summarizing key activities and basic financial and community
impact highlights. Financia reporting will consist of a self-certification of compliance with grant terms.
Requests <$25,000-
-Annual report on service outcomes
and performance metrics.
-Independently prepared compilation
report or CPA reviewed financial
statements or
-IRS Form 990
Requests $25,000-$100,000-
-Semi-annual reports on service
outcomes and performance metrics.
- Independently prepared compilation
report or CPA reviewed financial
statements
Requests $100,000+ TBD
-quarterly service outcomes and
performance metrics, and a year-end
community impact report.
-independently prepared compilation
report or CPA reviewed financial
statements.
March 11, 2025 www.cityofpaloalto.org
Nonprofit Partnership Workplan: Phased Approach (continued)
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Policy & Services Recommendation
Review and recommend City Council approval of a
phased approach to enhancing nonprofit
partnerships, beginning with process improvements
for nonprofit requests for funding through the FY
2026 City Budget process, which fall outside a
currently-established process.
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Nonprofit Partnership Workplan: Phased Approach
PURPOSE-
•Need a workplan that establishes clear framework that algins nonprofit partnerships with Council priorities, ensures fairness and inclusion in resource allocation, strengthens accountability while maintaining the agility to evolving community needs.
FIRST PHASE-
•near-term goal of establishing an initial process improvement for nonprofit requests for funding in the FY 2026 budget process, which currently fall outside currently established funding processes.
SECOND PHASE-
•will include subsequent Committee and Council consideration of applicability of nonprofit principles to other grants, service and lease agreements.
•Implementation of any new policy adjustments and programs will happen over time.
•Work to begin in the summer
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Nonprofit Workplan Phase 1 Summary
•Establish and implement a pilot grant program for nonprofit requests that fall outside of a currently established programs
•Recommend allocating $185,000 in FY26 for one-time grant requests
•Open to all 504 (c)(3)nonprofits, both new and current recipients
•Scaled application and reporting requirements based on funding request
•If desired, staff support to provide initial application evaluation for P&S review
•Draft application and optional rubric included in report
Other Considerations:
•Use of Funds- Funds typically focused on programming
• Grants disbursement- City best practice is on reimbursement basis
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Grant Implementation Timeframe Options
•Nonprofit feedback on timeframe preference was
solicited via email and
through a virtual drop-in
meeting
• A total of six nonprofits
expressed interest for Option 1 and one nonprofit voted for
Option 2
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Rubric and Application Feedback
Criterion Description Weight
1. Community Reach Measures the number of Palo Alto residents served and
the significance of the services.
30%
2. Equity Impact Assesses whether the organization serves underserved or
underrepresented groups.
30%
3. Alignment with Goals Evaluates alignment with the Council’s Priorities 20%
4. Program Sustainability Assesses the nonprofit’s capacity to deliver and sustain its
programs effectively.
20%
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Staff Recommendation
Recommend Council approve Phase 1 of the Nonprofit Workplan
– establishing a process for nonprofit requests for funding
through the FY 2026 City Budget process. This does not pertain
to currently-established grant programs.
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Lupita Alamos, Assistant to the City Manager
March 11, 2025
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