HomeMy WebLinkAboutStaff Report 2603-6028CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, April 06, 2026
Council Chambers & Hybrid
5:30 PM
Agenda Item
2.Discussion of Nonprofit Partnership Workplan Phase I Purpose and Improvements for FY
2027. CEQA Status – Not a project. Staff Presentation
City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: City Manager
Meeting Date: April 6, 2026
Report #:2603-6028
TITLE
Discussion of Nonprofit Partnership Workplan Phase I Purpose and Improvements for FY 2027.
CEQA Status – Not a project.
RECOMMENDATION
That the City Council discuss and provide feedback on the Nonprofit Partnership Workplan
(NPW) Phase I purpose and improvements and, given the City’s FY 2027 projected $14.9 million
deficit and planned General Fund reductions, and consider suspending the NPW Phase I pilot in
FY 2027 (no FY 2027 solicitation) and return in FY 2028 with a refined approach.
EXECUTIVE SUMMARY
The Nonprofit Partnership Workplan (NPW) Phase I pilot, implemented in FY 2026, improved
transparency in how nonprofit funding requests were evaluated during the City’s annual budget
adoption process. A total of $506,646 was awarded to 17 nonprofit organizations, including
four new partnerships serving the Palo Alto community.
Feedback from the City Council, the Policy & Services Committee, and nonprofit partners
indicates that Phase I’s purpose and structure need refinement—particularly to reduce
confusion about whether Phase I is a grant program versus a budget evaluation process, and to
clarify its relationship to the Human Services Resource Allocation Process (HSRAP). The purpose
of this study session is to review Phase I’s policy purpose, how it should align with existing
funding mechanisms, and potential process improvements should the City choose to continue
or redesign the approach.
Looking ahead to FY 2027, staff is currently developing budget recommendations that recognize
the City faces significant fiscal constraints, including a projected budget deficit and a balancing
strategy that reflect reduced General Fund resources. In this context, staff anticipates
recommending no funding for NPW Phase I in the FY 2027 recommended budget. This suggests
not inviting requests in FY 2027, with the intent to revisit the program in FY 2028 after
incorporating City Council feedback and identifying a clear and sustainable approach to
discretionary funding. Should the City Council wish to proceed with the process for FY 2027,
staff will continue work with the Policy & Services Committee to prioritize refining the program.
BACKGROUND
1, the City Council approved continuing the Nonprofit Partnership
Workplan Phase I funding process in the FY 2027 Budget Cycle and referred refinements of the
process to the Policy & Services Committee with a return to Council in early 2026. The Phase I
process is part of a broader effort to improve the City’s best practices for nonprofit
partnerships and contract management, consistent with recommendations from the 2022 City
Auditor’s report2. The pilot focused on improving how nonprofit funding requests that fall
outside existing funding mechanisms are evaluated during the annual City budget process.
3. The overall sentiment was that
the process produced positive outcomes, funding 17 nonprofit organizations, four of which
were new partnerships to provide services to the Palo Alto community. The pilot revealed
structural and policy issues, which require refining. Staff presented a set of process
improvements informed by stakeholder feedback for the Committee to consider. These
included clarifying application eligibility requirements, establishing funding priorities, defining
nonprofit service categories, enhancing application design and nonprofit engagement, and
clarifying roles between the Finance Committee and the Policy and Services Committee.
1 12/15/2025 City Council Meeting:
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=10222&meetingTemplateType=2&com
piledMeetingDocumentId=18036
2 2022 City Auditor Report on Nonprofit Agreement Risk Management Review:
https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=9028&compileOutputType=
1
3 1/14/2026 Policy & Services Committee Meeting:
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=10664&meetingTemplateType=2&com
piledMeetingDocumentId=18259
Concurrently, however, the likely limited funding availability in FY 2027 suggests that refining
the program could be deferred.
ANALYSIS
7 as well as
consideration of recent urgent funding needs such as Oversized Vehicles parking regulation,
railroad crossing monitoring, and funding allcove youth mental health services.
7 1/20/2026 City Council Meeting:
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=10251&meetingTemplateType=2&com
piledMeetingDocumentId=18295
partners defaulted to applying out of uncertainty, contributing to the disproportionate number
of applications from organizations already receiving City funding.
Exclude nonprofits that receive funding through existing grant programs or have a multi-
year service agreement from the Phase I funding application process.
Expand and broaden the scope of the existing Emerging Needs Fund process to support
larger funding requests and funding categories for unanticipated nonprofit needs
throughout the year.
Consider expanding HSRAP (or rebranding as Community Need Grants) to include
funding gaps such as arts, culture, workforce development, and environmental
stewardship. Ensure adequate funding is allocated to accommodate increase in scope.
FY HSRAP CDBG Phase I
Grants
Operating
Services
Total
*Includes two $5,000 grants not listed in Attachment A
While the 2025 Policy & Services Committee did not make formal recommendations at its
January 14, 2026 meeting, there was general consensus on various administrative areas of
improvement. Below is a list of discussion points:
Improve coordination between Finance and Policy & Services Committee. The Finance
Committee should set the Phase I budget for the fiscal year and the Policy & Services
Committee should make award recommendations to the City Council based on the
established budget.
Add a partial funding disclosure question to the application to help evaluate award
recommendations.
Consider routing applications through the Human Resources Commission for review
and recommendation to the Policy & Services Committee.
Replace alignment with Council Priorities in the Phase I application with other priority
or community needs criteria.
Frame future Phase I process funding as discretionary and non-guaranteed.
Include funding categories in the application for applicants to self-select (special needs,
youth services, arts & culture, climate action & natural resources, services for the
unhoused, senior services, workforce development, Other)
Revise the application (as proposed in Attachment B) to remove redundant or low-value
questions identified during the evaluation process.
Improve nonprofit outreach and guidance on Phase I process, including posting a
template service agreement on the City’s website to increase transparency on
contractual expectations.
Date Activity Hearing Body
April 6
April
April 17
April 20- May 1 Application period open (2 weeks)
April 21 Nonprofit workshop on application goals and
budget
May 4-8 Application intake
May 5-6 FY27 Phase I target budget set Finance Committee
May 14 Application review and recommendations to
P&S
HRC
May Special Meeting Applicant interviews Policy & Services
Committee
June 9 FY27 Phase I award recommendations Policy & Services
Committee
June 15 FY27 Phase I awards approved City Council
OPTION 2.
Date Activity Hearing Body
April 6 Council feedback on Phase I purpose and
improvements
City Council
April Phase I website updated: application timeline
and requirements posted
May 5-6 FY27 Phase I target budget recommendation Finance Committee
May Nonprofit information session on FY27 Phase I
updates and requirements
May Nonprofit workshop on application goals and
budget
June 1-29 Application period open (4 weeks)
June 15 FY27 Phase I budget approved City Council
July Summer Break
August 13 Application review and recommendations to
P&S
HRC
August Special
Meeting
Applicant interviews Policy & Services
Committee
September 8 FY27 Phase I award recommendations Policy & Services
Committee
September 28 FY27 Phase I awards approved City Council
Option 2 offers nonprofits more time for engagement and communication on the Phase I
process changes as well as four weeks for the application period.
Staff requests the City Council’s feedback on suspension of the NPW Phase I process in FY 2027,
clarity of purpose and improvements of the process for future consideration. Staff would
return to Council on consent agenda to reflect consensus heard during the Study Session.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
ATTACHMENT A
Nonprofit Service Agreements of $10K or More, as of FY 2026 Funding Source
Phase I OperatingContract End Total Contract FY26 Contract Preliminary Estimate
FY27 Amount
ResponsibleNo.Nonprofit Organization Name Contract Start Purpose HSRAP CDBG Grants Services
HSRAP ‐ Disability services. Provides
Community Services advocacy, inclusion, and independence1AbilityPath7/1/2025 6/30/2027 $145,245 $67,556 $69,583 X/Human Services for people with developmental
and their families
Community Services HSRAP ‐ Employment opportunities for2Ada's Cafe
Cafe
7/1/2025 6/30/2027 $122,550 $57,000 $58,710 /Human Services adults with developmental disabilities.
Phase I grant recipient for
eventsCity Manager x
HSRAP ‐ Services to lesbian, gay, bisexual,
queer and questioning
youth and their straight allies
youth mental health services
Community Services
Services4Adolescent Counseling Services 7/1/2025 6/30/2027 $97,019 $45,125 $46,479 X
5 allcove TBD TBD $200,000 TBD x
Community Services HSRAP ‐ Various program for low‐incomeAlta Housing 7/1/2025 6/30/2027 $94,338
$356,556
$3,186,528
$43,878
$178,278
$598,972
/Human Services youth and seniors
of the Below Market Rate7Alta Housing 5/19/2023 6/30/2025 $225,300 Planning x
Community Services Senior programs (formerly part of X/Human Services HSRAP)
Urban forestry professional services,
and education9Canopy10/6/2025 10/6/2028 $1,236,366 $400,000 $412,000 Public Works x
HSRAP ‐ Outreach services for school‐
based mental health counseling for
students in the community.
HSRAP ‐Provide transportation to access
in‐person therapy, basic food needs, and
clinician recommended therapy supplies
for families with children ages 5‐22 with
CASSY (Counseling and Support Services
Youth)
Community Services
Services10 X
Community Services
Services11 Children's Health Council 7/1/2025 6/30/2027 $21,102 $9,815 $10,109
Medi‐Cal
Nonprofit Phase I grant recipient for12 Children's Health Council
Ecology Action
7/1/2025 6/30/2026 $10,000 $10,000 $0 City Manager xyouth mental health services
SRTS Education Grades K‐3 & 5.
program supports youth mental2/12/2024 12/31/2027 $625,211 $193,889 $156,300 Transportation x
Ambassador Program at Foothills Nature
Program at Foothills Nature
14 Environmental Volunteers
Environmental Volunteers
$10,780 Community Services
Manager
x
7/1/2025 6/30/2026 $10,780 $10,780 xPreserve
Irrigation, maintenance, and reporting16 Grassroots Ecology 3/14/2024 $30,000 Public Works x
Habitat Restoration and Land17 Grassroots Ecology 7/1/2024
10/1/2023
7/1/2025
1/1/2024
6/30/2029 612,027
529,459
$121,653
$50,000
$118,789 $122,203 Community Services
Services
xSterwardship at Pearson Arastradero
restoration at Foothills Nature
& Adobe Creek Bridge18 Grassroots Ecology
Community Services HSRAP ‐ Winter shelter for women
Services experiencing homelessness
Services Shelter staffing for the Overnight
19 Heart & Home Collaborative
Heart & Home Collaborative
X
X/Human Services Warming Location (OWL)
Youth mental health services including
support, youth engagement,
campaign and training.
Phase I grant recipient for
development
21 JED Foundation 10/1/2025 9/30/2027 $149,000 $87,850 $61,150 City Manager x
22 JobTrain
Kara
7/1/2025 6/30/2026 $45,000 $45,000 $0 City Manager x
Community Services HSRAP ‐ Grief support$29,355 X/Human Services
Critical Incident Stress Management24 Kara Fire X
ATTACHMENT A
Nonprofit Service Agreements of $10K or More, as of FY 2026 Funding Source
Contract End Total Contract FY26 Contract Preliminary Estimate
FY27 Amount
Responsible Phase I Operating
ServicesNo.Nonprofit Organization Name Contract Start Purpose HSRAP CDBG
Community Services HSRAP ‐ outreach to connect families25 Karat School Project
Karat School Project
7/1/2025 6/30/2027 $75,637 $35,180 $36,235 X/Human Services living in RVs to essential services.
Phase I grant recipient for
engagement and connection to
Parking and housing enrollment7/1/2025 6/30/2026 $20,000 $20,000 $0 City Manager x
Community Services HSRAP ‐ Nutrition program for persons
Services 60 years of age or older.
Services HSRAP ‐ Food services for homeless and
27 La Comida
LifeMoves
7/1/2025 6/30/2027 $126,635 $58,900 $60,667 X
/Human Services very low‐income Palo Alto residents
Staff for the Homeless Outreach Team
Community Services (HOT). HOT goes out into the community29 LifeMoves
LifeMoves
7/1/2023 6/30/2027 $972,377 $251,301 $261,076 X/Human Services to connect unhoused individuals to
essential services.
Opportunity Services Center. Provide
one‐stop, multi‐service
drop‐in center for critical homeless
Planning &
Development
Services/CDBG
x
services
Nonprofit Phase I grant recipient for
31 LifeMoves 7/1/2025 6/30/2026 $48,366 $48,366 $0 City Manager meals and food resources for individuals
homelessness
‐ Meals on Wheels; fully‐prepared
x
Community
Services/Human
Services
32 Loaves and Fishes Family Kitchen $24,463 meals delivered to vulnerable seniors X
Nonprofit Phase I grant recipient for
33 Magical Bridge Foundation
MidPen Media Center
Momentum for Health
7/1/2025
3/31/2026
7/1/2025
6/30/2026 $150,000 $150,000 $0
$180,000
$0
Community Services adaptive programming for people of all x
abilities.
Cablecasting, production and streamingAdministrative Services
Manager
Nonprofit Phase I grant recipient for cold
protection and hygiene kits to
experiencing homelessness
Abroad provides ongoing
to the City for the City’s efforts
Sister Cities, Sibling City, and36 Neighbors Abroad
Neighbors Abroad
9/30/2019 12/31/2021 $134,636 $30,000 $47,500 City Manager x
Friendship Cit(ies).
Abroad provides ongoing
services to the City for the City’s efforts
Sister Cities, Sibling City, and
Cit(ies).
Support & Economic
City Manager
Manager
x
38 Palo Alto Chamber of Commerce
Palo Alto Community Child Care
6/20/2024 6/30/2026 $95,000 $50,000 $28,000 xRecovery Support to Businesses
Community Services Management of City's childcare subsidy$3,228,146 $606,794 $624,998 X/Human Services program (formerly part of HSRAP)
of the City’s archives and
public access to information
materials relating to City history
activations, previously known as
Thursday, from April 2026 to
2026 on California Ave to
business vibrancy
40 Palo Alto Historical Association (PAHA)7/1/2025 6/30/2028 $157,500 $51,000 $52,500 Library x
41 Palo Alto Recreation Foundation
Alto Transportation Management
Spring 2026 12/31/2026 City Manager x
Based on annual
budget submitted
to Council
Serving as Transportation Management
for Palo Alto427/1/2023 6/30/2027 $400,000 $400,000 Transportation xAssociation
ATTACHMENT A
Nonprofit Service Agreements of $10K or More, as of FY 2026 Funding Source
Contract End Total Contract FY26 Contract Preliminary Estimate
FY27 Amount
Responsible Phase I Operating
ServicesNo.Nonprofit Organization Name Contract Start Purpose HSRAP CDBG
HSRAP ‐ On‐site support services for
disabled adults living in
residential program
Parents and Advocates of Remarkable
and Adults (PARCA)
Community Services
Services437/1/2025 6/30/2027 $58,211
$122,243
$15,000
$27,075 $27,887 X
Community Services HSRAP ‐ Tutoring for low income middle
Services44 Pathwise (formally DreamCatchers)
Pathwise (formally DreamCatchers)
school students
Nonprofit Phase I grant recipient for
training and mentorship and parentCity Manager x
HSRAP ‐ Provide basic needs through
‐based services that target
immediate health needs of hard to
individuals experiencing
As of 11/1/25 took over
of the Downtown Food Closet
run by Downtown Streets
Phase I grant recipient for
to trauma‐informed healthcare for
Community Services
Services46 Peninsula Healthcare Connection
Peninsula Healthcare Connection
7/1/2023 6/30/2025 $268,521 $120,711 $128,530 X
7/1/2025 6/30/2026 $20,000 $20,000 $0 City Manager xmarginalized populations including
Health and Housing Services
Operating and Management Agreement48 Pets In Need 4/1/2024
10/1/2025
7/1/2024
3/31/2029 7,373,516 $1,370,000 $1,411,100 Community Services
Services
xto operate the Animal Shelter
provider for youth and teen
health49 Project Safety Net
Project Sentinel Community Services Landlord‐Tenant Mediation Program
/Human Services (formerly part of HSRAP)
Fair Housing Services. Provide fair
services including complaint
counseling, advocacy and
education
Planning &
Development
Services/CDBG
51 Project Sentinel 7/1/2025 6/30/2026 $22,005 $22,005 $20,000 x
Ravenswood Family Health Center
Clinic)
Community Services HSRAP ‐ Health services for low income,
Services52$145,527 Xuninsured Palo Alto residents
Create safe and healthy homes in Palo
allowing the most vulnerable
especially lower income
seniors, and those with
to remain in homes and
Planning &
Development
Services/CDBG
53 Rebuilding Together Peninsula 7/1/2025 6/30/2026 $73,585 $73,585 $73,000
communities
Hazard Mitigation including wildland
54 Santa Clara County Fire Safe Council
Senior Adults League Assistance (SALA)
8/1/2025 7/31/2030 $2,500,000 $308,000 $250,000 Fire fuel reduction, defensible space
and public education.
‐ Legal Assistance to Elders
x
Community
Services/Human
Services
X
Bicycle repair at schools, rodeo support,
of bicycles to low‐income
City bicycle fleet service. SRTS56 Silicon Valley Bicycle Exchange 8/1/2025 12/31/2026 $19,595 $19,595 $20,000 Transportation x
program supports youth mental health.
and Emergency Services. AssistPlanning &
Development
Services/CDBG
57 Silicon Valley Independent Living Center
UNAFF
7/1/2025 6/30/2026 $20,067 $20,067 $20,000 low‐income individuals and families in
for affordable, accessible housing
Phase I grant recipient for film
focused on human rights and
‐round screenings and panels
‐ Empowers individuals who are
or visually impared to embrace life
evaluation, counceling,
x
City Manager x
Community
Services/Human
Services
Vista Center for the Blind or Visually59 7/1/2023 6/30/2025 $127,523 $59,313 $61,092 X
education and training
ATTACHMENT A
Nonprofit Service Agreements of $10K or More, as of FY 2026 Funding Source
Phase I OperatingContract End Total Contract FY26 Contract Preliminary Estimate
FY27 Amount
ResponsibleNo.Nonprofit Organization Name Contract Start Purpose HSRAP CDBG Grants Services
Community
Services/Human
Services
Community
Services/Human
Services
HSRAP ‐ Senior fitness programming and
assistance for senior
‐ Youth well‐being and leadership
services through community
projects
60 YMCA of Silicon Valley 7/1/2025 6/30/2027 $36,765 $17,100 $17,613 X
61 Youth Community Services 7/1/2025 X
Youth Community Services (Youth
62 Connectedness
Initiative)
Community Services Funding for the Youth Connectedness
Services Initiative x
Youth Community Services (Youth
63 Connectedness
Initiative)
Community Services Funding for the Youth Connectedness
Services Initiative$50,000 x
TOTAL $25,159,790 $6,726,612 $6,571,194
**Ongoing allocation reflected in department contract
ATTACHMENT B
FY 2027 Budget Nonprofit Funding Request- Application
ORGANIZATION INFORMATION
Are you a 501 (c)(3) nonprofit organization? ☐Yes
☐No
Organization Name
Year Founded
EIN (Tax ID#)
Contact Person, First and Last Name
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
Name of Program: Grant Request Amount: $
Please provide a narrative describing your proposed program (no more than 200 words):
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 Will your organization proposed program 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)
What fees will be charged for proposed services, if any?
Will subsidized or fee waivers be offered to clients?
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:
ATTACHMENT B
Public Safety, Wellness & Belonging:
PROGRAM GOALS
Attachment 1: Please use the template below to list up to 3 goals related to the program(s) you are proposing with
requested funding. In a separate Attachment 1, for each goal identify 1-3 strategies your organization will implement
to achieve this goal. For each strategy, provide an objective and an outcome.
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.”
Describe your organization’s plan for evaluating the program’s effectiveness? Include any specific measurement tools
to be used such as surveys or other tools. (no more than 200 words)
PROGRAM SUSTAINABILITY BUDGET
What amount $ and percent % of your organization’s budget is currently funded by the following:
If the full funding request is not awarded, would the program remain viable with partial funding? (Y/N)
☐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).
Attachment 2- Proposed Budget. Describe specifically how the requested funding will be used.
REQUIRED ATTACHMENTS
Attachment 1: Program Goals Attachment 3: IRS Determination Letter (501 (c)(3)
Attachment 2: Proposed Budget Attachment 4: IRS Form 990*
REPORTING REQUIREMENTS
*Requests of up to $510,000- brief annual report (1-2 pages) summarizing key activities and community impact
highlights. -Financia reporting will consist of a self-certification of compliance with grant terms.
Requests $510,000-$25,000-
-Annual report on service outcomes
and performance metrics.
-IRS Form 990
Requests $25,000+-$100,000-
-Semi-annual reports on service
outcomes and performance metrics.
- IRS Form 990
Requests $100,000+
-Quarterly service outcomes and
performance metrics, and a year-end
community impact report.
- IRS Form 990
ATTACHMENT B
ATTACHMENT B
ATTACHMENT 2: Program Goals
Please use the template below to list up to 3 goals related to the program(s) you are proposing with
requested funding. In a separate Attachment 1, for each goal identify 1-3 strategies your organization
will implement to achieve this goal. For each strategy, provide an objective and an outcome.
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.”
Goal #1:
Strategy(s)-
Objective(s)-
Outcome(s)-
Goal #2:
Strategy(s)
Objective(s)
Outcome(s)
Goal #3:
Strategy(s)
Objective(s)
Outcome(s)
ATTACHMENT B
ATTACHMENT 2: FY 2027 (July 1, 2026-June 30, 2027)
Proposed Budget
FY2027
Total Program Expense
Budget
Total Program Expense
Budget for
Requested Funding
Program Name:
Salaries-
Overhead (insurance, rent, phone,
etc.)-
Insurance
Audit
Rent & Utilities
Maintenance/Repair
Phone
Consultants-
Staff Development & Training
Travel & Meetings
Information Technology
Equipment
Office Supplies & Materials
Printing & Publishing
Direct Services-
Direct Subsidy-
Other-
Other-
Total
Add any additional program budget sheet(s) here, as needed.
Click or tap here to enter text.
ATTACHMENT B
ATTACHMENT B
ATTACHMENT 3: IRS Determination Letter 501(c)(3)
ATTACHMENT B
ATTACHMENT B
ATTACHMENT 4: IRS Form 990*
ATTACHMENT B
ATTACHMENT B
Signature(s)
The undersigned certifies the information contained in this proposal is true and accurate to the
best of their knowledge and belief. The undersigned warrants that they have authority on behalf
of the organization they represent to enter into this proposal, warrant its accuracy, and bind the
organization to the applicable terms and conditions.
Name of Authorized Signer: Click or tap here to enter text.
Title: Click or tap here to enter text.
Sign Here: Click or tap here to enter text.
Date: Click or tap here to enter text.
Name of Authorized Signer: Click or tap here to enter text.
Title: Click or tap here to enter text.
Sign Here: Click or tap here to enter text.
Date: Click or tap here to enter text.
April 6, 2026 www.paloalto.gov
STUDY SESSION:
Nonprofit Partnership
Workplan Phase I Process
•Nonprofit Partnership Workplan Phase I Funding Requests
➢TONIGHT: Discuss and provide feedback on consideration to suspend Phase I in FY
2027 due to projected fiscal deficit. Discuss purpose and potential improvements
if continued.
•Nonprofit Lease Agreements
•Nonprofit Multi-Year Service Agreements
•Comprehensive review of all grant programs including Human Services Resource
Allocation Process (HSRAP) and Community Development Block Grants (CDBG)
2
Nonprofit Workplan Major Areas of Work
•Intended to provide the City Council with a fair and
equitable way to evaluate nonprofit funding
requests during the Budget Adoption process; it was
not intended to represent a new grant program.
•All 501(c)(3) nonprofits were qualified to apply, no
exclusions.
3
Nonprofit Workplan Phase I Pilot
•Pilot caused confusion among nonprofits on who should apply and whether to seek
funding, especially for nonprofits with multi-year or ongoing service agreements.
•16 nonprofits were awarded one-time Phase I grants, totaling $506,646
4
Nonprofit Workplan Phase I Process Improvements
•Frame the Phase I process funding as
discretionary and non-guaranteed
•Clarify eligibility for recipients of multi-year
contracts or other City grant programs
(i.e.,HSRAP or CDBG)
•Funding priorities (replace relationship to
Council Priorities with other priority or
community needs criteria)
•Improve clarity between Council Committees;
Finance set funding available and Policy &
Services reviews applications/recommends
awards
•Improve application evaluation process by
categorizing nonprofit services to clarify
service alignment and consider Human
Relations Commission (HRC) review
•Streamline redundant or low value
applications questions
•Early communication and engagement with
nonprofits on application expectations
•Funding disclosure, structure grant to
complement versus fully cover program costs
•Adjust application timeframe to allow for
nonprofit interviews
No proposed FY 2027 reductions to HSRAP, Emerging Needs Fund, or ongoing service
contracts. No anticipated reductions to CDBG fund allocations.
•Projected $14.9 million General Fund deficit
•Balancing strategies include exploring new revenue sources, $7 million in General
Fund reductions, Capital Improvement Fund reductions, pension cost contributions,
use of stabilization reserves.
5
FY 2027 Financial Outlook
Fiscal Year HSRAP CDBG Phase I Operating
Services Total
FY 2026 911,431 154,812 506,646 5,163,723 $6,736,612
FY 2027 942,971 (est.) 152,000 TBD 5,476,223 $6,571,194
6
FY 2026 Phase I Awards of $506,646 to 16 Organizations
Line
#Organization FY 2026 $Purpose
3 Ada's Café*10,000 Community events
12 Children's Health
Council*
10,000 Youth mental health services
15 Environmental
Volunteers*
10,780 Ambassador Program at Foothills
Nature Preserve. Turn to op. srv
agreement in FY 2027.
22 JobTrain 45,000 Workforce development
26 Karat School Project*20,000 Improved engagement and connection
to Safe Parking and housing
enrollment programs
31 LifeMoves*48,366 Meals and food resources for
individuals experiencing homelessness
33 Magical Bridge
Foundation
150,000 Adaptive programming for people of
all abilities.
35 Momentum for Health 15,000 Cold season protection and hygiene
kits to individuals experiencing
homelessness
N/A Musical Memories
Foundation, Inc
5,000 Senior services, provision of music at
residences, senior centers and events
* Organization also expected to receive funds via HSRAP, CDBG, and/or operating service agreement
Line
#Organization FY 2026 $Purpose
37 Neighbors Abroad*17,500 Ongoing services for the City’s efforts
with Sister Cities, Sibling City, and
Friendship Cit(ies). Add to op. srv
agreement in FY 2027.
41 Palo Alto Rec
Foundation (Cal Ave)
40,000 April 2026 to September 2026
monthly activations on California Ave
to support business vibrancy
N/A Palo Alto Special
Education PTA
5,000 Training for mentors and for the
buddy program
45 Pathwise (Formerly
DreamCatchers)*
15,000 Tutor training and mentorship and
parent engagement
47 Peninsula Healthcare
Connection*
20,000 Access to trauma-informed
healthcare for marginalized
populations including Health and
Housing Services
58 UNAFF 45,000 Film festival focused on human rights
and year-round screenings and panels
62 Youth Community
Service*
50,000 Funding for the Youth Connectedness
Initiative. Turn to op. srv agreement in
FY 2027.
7
Council Discussion
Discuss and provide feedback on
•Given the City's FY 2027 projected $14.9 million deficit and planned General Fund
reductions, staff recommends that Council consider suspending the Nonprofit
Workplan Phase I pilot and solicitation in FY 2027 and consider returning in FY 2028
•The Nonprofit Partnership Workplan Phase I –purpose, improvements, & refinements,
if continued
Lupita Alamos, Assistant to the City Manager
lupita.alamos@paloalto.gov
April 6, 2026