Change the way governments give to nonprofits (reforming grant writing processes by capping and restricting additional funding for nonprofits with assets exceeding $100 million)
Governor Gavin Newsom, state senators, and assembly members end the inequality of nonprofits to close the gap from billion-dollar nonprofits to small nonprofits (parallels to the inequality gap in the United States)
Children’s Hospital of Los Angeles (CHLA) should return the $149 million in government grants received in 2022 and any government grants received in 2023
BBFK should receive funding to audit Prop 64 accountability, spending, selection process, etc.
At Building Blocks for Kids (BBFK), we hold a strong belief in the potential of the United States as a leading nation globally. This belief is grounded in the nation's unique capacity for continuous improvement, rooted in the very principles of our Constitution. As we strive to create a more perfect union, we recognize the need for reform in various areas, including the nonprofit sector, climate change, education (K-12/Higher education), government (Accountability/Lobbyist/Oversight/Spending), healthcare, housing, homeless, immigration, prison systems, and many more in alignment with the values and aspirations that define our nation. We have ideas for all these topics and would love to discuss them, but for this article, we want to focus on non-profit sector reform. The whole system of nonprofits should not be based on who knows more people, who has the biggest grant-writing team, who throws the best parties, or who has the most influence to pay for celebrity endorsements, but about who is creating the most significant impact to address the issues in our society. There are many billion-dollar organizations that should not swim in large sums of money without using them to make a difference (aka Scrooge McDucking it) while small organizations struggle to find any grants or donations. Many times these large groups continue to ask (instead of asking, just to keep the same tense) for more money, which portrays greed rather than their “philanthropy.” Our research shows that it is time to replace old non-profit granting methods with a new approach focused on true impact, accountability, and proper budgeting.
We question whether it is greed or philanthropy when a non-profit is asking for more money from the government (and receiving it) even when they already have $2 BILLION in assets, as seen in the case of Children’s Hospital of Los Angeles (CHLA). BBFK (a $50k nonprofit organization) was competing against CHLA for the Elevate the Youth (Prop 64) Cohort Number 4. CHLA is not the only nonprofit organization that we took issue with for the selection process of all Prop 64 grants from the Sierra Health Foundation which makes the recommendations to the DHCS. We reached out to CHLA, Sierra Health Foundation, and DHCS, and none of them responded to our requests for comments. The only reason CHLA got the donation was because of their power and influence, which makes it seem that government grants are a rigged game. It is also apparent that the whole system of grant-writing (to receive the donation in the first place) is an unequal setup for the smaller nonprofits. Sierra Health claimed that BBFK did not write a well-written medical grant; keep in mind our youth-led team, writing these grants, are high school and college interns, whereas a fellow “competitor” like CHLA are more than likely paying their team of grant- writers millions of dollars. This is counterproductive when taking into consideration their vast bank account which makes you question, why are they even allowed to go after this grant in the first place!?!? Despite their assets of $1.7 billion, and of that, $850 million is in publicly traded securities. Although we have no doubt that CHLA is a foundation that genuinely wants to make a difference, it is still prevalent that they should not be asking for money when taking into consideration their diverse financial portfolio. Did they really need that $1 million?
In conclusion, CHLA should give back the $149 million received in 2022 (per their 990 Form) and any money received in 2023 from government grants. This money will be put to good use with LAUSD and the MORE program, ensuring that in 2024 every single student in one grade level at all high schools will receive this program. Furthermore, Governor Gavin Newsom, our state senate, and our assembly members should change the law on who is allowed to receive government grants by putting caps on nonprofits over $100 million, $250 million, or $500 million in assets. This ensures that when a group reaches a certain size (whether it is million or billions) they should not be allowed to receive additional government funding. Thus, by establishing a threshold for grant eligibility, we can ensure a just allocation of taxpayer dollars and eliminate the outright greed we are finding in these large organizations. By creating a new grant system that prioritizes accountability and societal impact rather than a barrage of false promises, this will enhance transparency and allocation efficiency. With these changes, we can make a more substantial and positive impact on our community, utilizing taxpayer dollars more effectively.