Connecticut Prepares to Launch Nonprofit Advisory Board; State Agencies and Nonprofits to Collaborate Per New Law
/The Connecticut State Senate and House of Representatives passed legislation this year establishing a 23-member Nonprofit Advisory Board, which will be made up of nonprofits and state agencies, and creates a nonprofit liaison position at the Office of Policy and Management, funded in the state budget, to coordinate.
The new law requires the Board to focus on streamlining state processes, opportunities for collaboration between state agencies and nonprofits, and recommending solutions for ensuring the financial viability of nonprofits, among its responsibilities.
Specific provisions, as outlined by the Office of Legislative Research, include:
a recommendation for a standardized workforce data collection system for nonprofit organizations to measure and compare impact across private provider services;
recommendations on short- and long-term strategies to enhance nonprofit organizations’ financial viability, including through payment reform models, based on best practice;
opportunities to collaborate across state agencies that promote nonprofit provider effectiveness and efficiency and streamline state processes, including opportunities to adjust state agency processes and contract expectations to achieve beneficial outcomes for providers and state residents;
areas to improve access to and delivery of nonprofit provider services;
short- and long-range opportunities, issues, and gaps for nonprofit providers that may result from changes in federal funding or policies.
The legislation also protects volunteers who drive for nonprofits from their car insurance increasing or being cancelled, if they provide voluntary services such as transporting people or goods for nonprofit or charitable organizations without compensation above expenses. That provision takes effect on January 1, 2027; the remainder of the legislation took effect as Public Act 26-102 with the Governor’s signature a month ago on June 2, 2026.
The legislation requires the governor to appoint the following 12 members, to serve terms that align with the governor’s term:
a nonprofit behavioral health care provider who contracts with the Department of Mental Health and Addiction Services;
a nonprofit children’s behavioral health care provider who contracts with the Department of Children and Families;
a nonprofit homeless services provider who contracts with the Department of Housing;
a nonprofit service provider for people with intellectual disabilities who contracts with the Department of Developmental Services (DDS);
a nonprofit provider serving people with co-occurring intellectual or developmental disabilities and behavioral health care needs who contracts with DDS or the Department of Social Services;
a nonprofit community justice services provider who contracts with the Department of Correction;
the chief executive officer of a state-wide association of community nonprofits, or the officer’s designee; and
five at-large appointments.
The Advisory Board also will include 11 ex-officio members: the Office of Policy and Management Secretary, the Commissioners of Children and Families, Correction, Developmental Services, Early Childhood, Housing, Labor, Mental Health and Addiction Services, Public Health, Aging and Disability Services, and Social Services, as well as the Court Support Services Division’s Executive Director.
Proposed by Governor Ned Lamont, the legislation reflected “one of my priorities this year is to provide more predictability to our nonprofit agency partners, who continue providing extraordinary services that are needed more than ever in these trying times,” he explained in legislative testimony. “We can take this important step to reduce financial uncertainty for providers and give nonprofits a greater ability to provide cost-effective care in their communities.”
The legislation was described by the Connecticut Community Foundation as “a great step for award for nonprofit representation,” and among those testifying in favor of the legislation was Gian-Carl Casa, President & CEO of the Connecticut Community Nonprofit Alliance.
Prior to Senate (25-11) and House (122-27) passage, the legislative proposal was overwhelmingly approved by the Human Services Committee (15-7) and the Appropriations Committee (47-6).
