Grantees: Nonprofit Performing Arts Organizations

A nonprofit performing arts organization must satisfy the following criteria, at minimum, to be eligible to receive a workforce development grant under the California Nonprofit Performing Arts Grant Program:

1. Applicant satisfies one of the following:

i. meets the definition of an “eligible nonprofit performing arts organization” pursuant to Program guidelines, meaning that Applicant is registered as a 501c(3) nonprofit entity that satisfies the criteria for a qualified small business pursuant to subdivision (g) of Cal. Gov’t Code § 12100.82, has no more than two million dollars (≤ 2,000,000) in annual gross revenue, and is in one of the following North American Industry Classification System codes, as reported on the entity’s tax return:

711110 – Theater Companies and Dinner Theaters.
711120 – Dance Companies.
711130 – Musical Groups and Artists.
711190 – Other Performing Arts Companies; or

ii. serves as a fiscal sponsor for entities that meet the requirements set forth in subsection 1(i) above; and

2. Applicant, or in the case of a fiscal sponsor, such Applicant’s eligible, fiscally-sponsored organization began operating in the state prior to June 1, 2019, as evidenced by the eligible nonprofit performing arts organization’s official filing with the California Secretary of State.

Ineligible Businesses or Organizations

The following types of businesses or organizations are ineligible to receive a Grant Award under the Program:

• a nonprofit entity not registered as either a 501c(3); 
• a government entity (other than an entity owned and/or operated by a Native American tribe) or elected official office;  
• a business or organization primarily engaged in political or lobbying activities;  
• a passive business or organization, investment company or investor who files a Schedule E on its tax returns; 
• a church or other religious institution, other than a school, child care, or other educational organization affiliated with a church or other religious institution where (i) greater than 50% of the gross annual revenue (as reflected on the entity’s most recent federal tax filing (2019)) is derived from the school, child care facility or other educational business and (ii) the grant funds will be used only for eligible costs and expenses directly related to the school, child care, or other educational organization, and no portion of the Grant Award will be used for any normal profit or overhead of the church or other religious institution; 
• a financial business or organization primarily engaged in the business of lending, such as a bank, finance company or factoring company; 
• a business or organization engaged in any activity that is illegal under federal, state or local law; 
• a business or organization of a prurient sexual nature, including a business or organization which presents live performances of a prurient sexual nature or a business or organization which derives directly or indirectly more than de minimis gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature; 
• a business or organization engaged in any socially undesirable activity or activity that may be considered predatory in nature such as rent-to-own businesses or check cashing businesses; 
• a business or organization that restricts patronage for any reason other than capacity, specifically any business that illegally discriminates patronage; 
• a speculative business or organization, meaning a business or organization for the sole purpose of purchasing and holding an item until the market price increases or other business or organization principally engaged in risky activity for the chance of an unusually large profit, including but not limited to, (i) oil wildcatting, (ii) dealing in stocks, bonds, commodity futures, and other financial instruments and (iii) mining gold or silver in other than established fields; 
• an eligible nonprofit performing arts organization (as defined in Section 6(a)(i) above) that is affiliated (as such term is defined in 13 C.F.R. § 121.103) with another Applicant; 
• a business, organization, franchise, or location of which any executive director or equivalent senior managing officer of Applicant, or in the case of a fiscal sponsor, such Applicant’s eligible, fiscally-sponsored organization, has already applied for and received a grant under the Program; 
• a publicly traded corporation, or a business or organization majority owned and controlled by a publicly traded corporation; or 
• a business or organization that does not have (1) multiple clients providing income to the business or organization as demonstrated by multiple W-9 forms, invoices, purchase orders or (2) a business plan clearly stating a pathway to obtaining multiple clients and/or creating two (2) or more jobs.