Nonprofit Organization Registration

Nonprofit organizations registered with the Office of Small Business and DVBE Services (OSDS) are eligible for benefits under the state's Prompt Payment Act. The Prompt Payment Program is designed to expedite the invoice payment process for registered nonprofit organizations and certified small businesses. Additionally, a registered nonprofit organization receives higher interest penalties when the state exceeds its 45-day time limit (of the required payment date) to pay a properly submitted and undisputed invoice. Upon receiving written registration confirmation from the OSDS, the nonprofit organization may purchase a prompt payment rubber stamp to use on its invoices submitted to the state. The stamp alerts state agencies of a nonprofit organization's registered status and that he invoice should be handled promptly.

Nonprofit Organization Prompt Payment Exceptions

Nonprofit organization prompt payment benefits do not apply in the following cases:

  • When a contract exceeds $500,000
    • When no Budget Act is enacted

    Small Business Certification Eligibility

    Nonprofit organization are not eligible for small business certification because the applicant business must be a for-profit business and owned by one or more individuals and/or businesses.

    Disabled Veteran Business Enterprises (DVBE) Certification Eligibility

    Nonprofit organizations are not eligible for DVBE certification because the applicant business must be at least 51% owned by one or more disabled veterans.

    Nonprofit Registration Requirements

    Submit to the OSDS:

    • The entire, signed Federal Tax Form 990 (Return of Organization Exempt from Income Tax) for the most recently completed tax year.

    If your nonprofit organization was established less than one year ago and has not yet filed the Federal Tax Form 990 required above, submit:

    • Your firm's "Articles of Incorporation" as filed with the California Secretary of State


    Government Code, Section 927 et seq.
    Government Code, Section 14835

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