Nonprofit Partnership Workplan

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The City of Palo Alto is committed to strengthening its partnerships with nonprofit organizations to enhance community services and align with Council priorities. The development of a Nonprofit Partnership Workplan is underway. Informed by a 2022 Nonprofit Audit, the report identified opportunities to improve accountability, transparency, and resource allocation in nonprofit partnerships. The Nonprofit Partnership Workplan will provide a structured approach to nonprofit engagement, funding, and evaluation to ensure consistency, fairness, and impact across all agreements.  This work will continue over discussions with the Policy and Services Committee and the City Council.
 

As a first phase in this effort, ALL nonprofit requests for funding through the City’s FY 2026 Budget outside an existing funding program must submit an application in order to be considered.

Nonprofit Partnership Guiding Principles 

  1. Impact-Oriented Focus & Accountability- Ensuring measurable outcomes and responsible financial stewardship. 
  2. Service Alignment- Prioritizing programs that align with Council goals and community needs. 
  3. Fairness, Open Access, Equity & Inclusion- Maintaining transparent and equitable funding processes. Ensuring accessibility and prioritization of underserved communities. 
  4. Flexibility for Special Circumstances- Allowing Council discretion to address urgent needs. 

Phase I-Submittal Requirements for City Budget Funding Requests

As the workplan proceeds, the City is implementing a near-term solution to address nonprofit requests for funding in the Fiscal Year (FY) 2026 City Budget outside established funding programs such as Human Services Resource Allocation Process (HSRAP), Community Development Block Grant (CDBG), or Emerging Needs Programs. The new process establishes submittal requirements and decision-making timeframe for funding available for the term of July 1, 2025-June 30, 2026.

The City Council has established a target of $246,000 for for nonprofit partnership funding.  Actual funding is subject to change based on FY 2026 Budget decisions. Not every funding request may be granted and, funding amounts may vary from requests.

1. Do I need to submit an application?

All nonprofit requests for funding through the City’s FY 2026 Budget outside an existing funding program must submit an application to be considered.

Examples of existing nonprofit funding programs include Human Services Resource Allocation Program (HSRAP), Community Development Block Grant (CDBG), Emerging Needs Grants or any other multi-year agreement with the City.

2. Who qualifies for funding?

All 501 (c)(3) registered nonprofits providing services in Palo Alto are qualified to apply for funding.

3. Can my organization apply if we currently receive funding from the City of Palo Alto through a grant or service/lease contract?

All 501 (c)(3) nonprofit organizations may apply, regardless of current City grant funding status or service/lease contract. 

4. When are applications due?

Applications must be received by May 9, 2025, 3 p.m. at NPW1@paloalto.gov. No late applications will be accepted. Failure to submit a complete application may disqualify the organization for funding consideration. Applicants should receive an automatic reply acknowledging receipt of application.

5. How will my application be evaluated?

The following rubric will be used as a guide to review applications; however, the Policy & Services Committee will be making recommendations for City Council approval.

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 City Council’s Priorities

20%

4. Program Sustainability

Assesses the nonprofit’s capacity to deliver and sustain its programs effectively.

20%

 

6. What is the application timeline?

Action

Date

Notice of Funding Availability to nonprofits

April 1

Nonprofit applications due

May 9

Policy & Services Committee reviews and recommends applications

June 10

City Council FY 2026 Budget Adoption includes funding appropriation and nonprofit application awards

June 16

Nonprofits are notified of funding decisions

June 18-27

7. How do I apply?

Fill out an application by May 9 at 3 p.m.

*Requests < $5,000 do not need to submit an IRS Form 990 

Applicants should receive an automatic reply acknowledging receipt of application.

If you do not receive confirmation of receipt:

1. Check you junk/spam folder or firewall for blocked emails
2. Contact Lupita Alamos, Lupita.alamos@paloalto.gov, (650) 239-2403.

The application period has closed.