DATE: August 10, 2026
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Kevin Ortiz, Management Analyst
DEPARTMENT: City Manager
SUBJECT: Consideration of Applications for Nonprofit Agency Funding for Fiscal Year 2026-2027
RECOMMENDATION
It is recommended that the City Council consider applications for nonprofit agency funding for FY 2026-2027 and by Minute Order, provide direction to staff regarding funding allocations.
EXECUTIVE SUMMARY
The City’s adopted Final Biennial Budget includes a funding allocation of $75,000 each in Fiscal Years 2026-2027 and 2027-2028 for contributions to nonprofit agencies that provide services to the Foster City community. For FY 2026-27, the City received funding requests from twenty (20) nonprofit agencies, totaling $198,000.
At the February 10, 2026 City Council Annual Retreat (Council Special Meeting), the City Council provided direction to City staff to implement the FY 2026-2027 Nonprofit Funding Program (link). In alignment with the City Council’s direction, the City’s Nonprofit Funding Program Guidelines (Attachment 1) and application detailed the funding level percentages and eligible activities for each Nonprofit Community Needs Category, which are included below.
Basic Services – Activities include, but are not limited to, services for the homeless, seniors, youth, and low-income individuals and families, such as subsistence programs, healthcare initiatives, and rental assistance.
Nonprofits submitting applications in this Community Needs Category are eligible for 60% of the total amount allocated by the City Council. This equates to $45,000.
Community Enrichment – Activities that promote community enrichment, including, but not limited to, educational and recreational programs and initiatives that promote social equity and engagement.
Nonprofits submitting applications in this Community Needs Category are eligible for 25% of the total amount allocated by the City Council. This equates to $18,750.
Community Health – Activities include, but are not limited to, programs or projects that support Foster City residents’ well-being, preserve city resources, or increase community environmental sustainability.
Nonprofits submitting applications in this Community Needs Category are eligible for 15% of the total amount allocated by the City Council. This equates to $11,250.
In addition, the Nonprofit Grant Program Guidelines detailed the Application Process and Funding Process for FY 2026-2027. As part of the process, staff is seeking City Council’s direction on the funding allocation for each nonprofit agency at a City Council meeting.
BACKGROUND/ANALYSIS
For many years, the City Council has designated funds to support “local nonprofit agencies” that operate programs and provide services that benefit the Foster City community. “Local” means that the agency provides services within San Mateo County and can demonstrate a benefit to Foster City residents. “Nonprofit” means that the organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. The adopted Final Biennial Budget includes a budget allocation of $75,000 in FY 2026-2027 for funding contributions to nonprofit agencies under the City Council's Community Promotion Budget.
The City received nonprofit funding program applications from twenty (20) nonprofit agencies for FY 2026-2027 (Attachment 3). As detailed in the Application Process (Attachment 1), staff evaluated nonprofit applications received by the deadline for completeness. In compliance with the Ralph M. Brown Act, staff subsequently shared the nonprofit applications via email with each City Councilmember individually. Using the Community Needs Funding Levels Categories, Councilmembers provided their proposed funding allocations for each nonprofit agency separately, which were then compiled by staff and included on the agenda for Council’s consideration at the August 10, 2026 City Council Special Meeting (Attachment 2).
In addition, eligible nonprofit applicants were invited to appear during the City Council Special Meeting on Monday, August 10. This provides nonprofit applicants with the opportunity to briefly provide an overview of their organization, programs or services they provide, and demonstrate how funds received would make an impact on the Foster City community.
At the August 10, 2026 City Council Special Meeting, the City Council has the opportunity to consider the nonprofit applications and funding allocations using the Community Needs Categories, build consensus, and provide direction to staff regarding funding allocations for selected nonprofit agencies. Once funding allocations are determined and approved by the City Council via Minute Order, staff will send out a written notice to all nonprofit funding applicants to notify them of their status. Nonprofit agencies selected for funding will be notified in writing of the City Council’s approval and funding allocation, and will be asked to submit an invoice and W-9 documentation to the City to receive the funds.
CALIFORNIA ENVIRONMENTAL QUALITY ACT
Not Applicable
FISCAL IMPACT
Funding is available in General Fund in the amount of $75,000 for FY 2026-2027 in the approved Final FY 2026-2027 and 2027-2028 Biennial Budget, specifically under the City Council’s Community Promotion Expenses – Contributions to Other Agencies Budget (Account No. 001-1030-413-4260).
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS
Attachment 1 – Nonprofit Grant Program Guidelines FY 2026-2027 Attachment 2 – City Council Individual Proposed Funding Allocations (Compiled) Attachment 3 – FY 2026-2027 Nonprofit Funding Grant Applications (Compiled)