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Little Hoover Commission Urges Stronger Public-Philanthropic Partnerships

Jun 16, 2025 03:31PM ● By Little Hoover Commission
Equality




SACRAMENTO, CA (MPG) - 
Calif. should take concrete steps to institutionalize its relationships with philanthropic partners that help to fund key public-sector initiatives, the Little Hoover Commission said in a report released today.
 
The Commission urged the state to take four measures to improve its ongoing public-philanthropic partnerships, including the creation of a permanent position to advise the governor about such efforts, and a continued push to establish a public-philanthropic liaison in major state agencies.
 
The Commission also recommended creation of a formal data collection, monitoring and evaluation process for public-philanthropic partnerships, and creation of a position in the Legislature that can serve as a centralized point of reference on the topic.
 
“Philanthropies are a critical partner for state government,” said Commission Chair Pedro Nava. “Policymakers owe it to their private-sector partners – and to Californians – to make sure that these relationships are as productive as possible.”
 
The Commission found that state government has prioritized public-philanthropic partnerships in recent years, creating more than 100 partnerships across more than two dozen state agencies. These collaborations have mobilized $13.6 billion in state funds and $4.2 billion from philanthropic organizations.
 
“The state is doing well in working with philanthropies, which have supported a wide range of initiatives such as disaster relief and workforce training,” said Commissioner Janna Sidley, who served on the subcommittee that led this study. “But as with any part of state government, more can be done, and we believe the recommendations in this report are a strong step forward.”

The report follows a hearing about public-philanthropic partnerships in which Commissioners took testimony from academic experts, state officials and philanthropic leaders.
 
“As philanthropy works to transition into the mindset of ‘change not charity,’ so too must government rethink the way it works on these issues,” said Commissioner José Atilio Hernández, who also served on the study subcommittee. “That’s why our recommendations specifically call out for greater collaboration and the need for the Governor’s Office, the Attorney General’s Office, and Legislature to have an intentional role. With everyone in state government working together, we can maximize the investments (and results) with philanthropic partners.”
 
The Commission is also studying how state government can be a better partner when contracting with nonprofits, and hopes to release a study on those issues later this year.
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