TLDR
Los Angeles has two overlapping government funding systems — the County of Los Angeles and the City of Los Angeles — each with its own procurement portal, fiscal year, and contracting process. Most nonprofit human services funding flows through LA County departments (DCFS, DMH, DPH, DPSS) and the joint city-county Los Angeles Homeless Services Authority (LAHSA). City of LA funding concentrates in housing (HCIDLA), community development (HCIDLA CDBG), and cultural affairs. Measure H sales tax revenue funds a significant share of homelessness services countywide. The critical distinction for any LA nonprofit is knowing whether the funding source is county, city, or joint — because the compliance requirements, procurement portals, and fiscal calendars differ.
Los Angeles presents a funding environment that confuses nonprofits from other cities: two major government structures — county and city — with overlapping geographies, separate procurement systems, and a joint authority (LAHSA) that straddles both. Add state and federal pass-through funding, Measure H sales tax revenue, and Metro’s transportation equity grants, and the result is a system where the hardest part is often knowing which door to knock on.
This guide maps the major government funding channels, explains the procedural differences between county and city procurement, and covers the compliance realities that determine whether an LA nonprofit can sustain government funding over time.
County vs. City: The Fundamental Distinction
LA County has a population of roughly 10 million across 88 incorporated cities and large unincorporated areas. The City of Los Angeles has roughly 4 million residents. Most nonprofits operating within city limits can access both county and city funding. Organizations outside city limits access only county (and sometimes state) funding.
The practical implications:
- County funding (DCFS, DMH, DPH, DPSS, Probation) serves the entire county. Procurement runs through eBid and individual department portals. The Board of Supervisors approves large contracts.
- City funding (HCIDLA, Department of Cultural Affairs, City Council) serves only the City of LA. Procurement runs through the city’s RAMP system and department-specific processes. City Council approves contracts.
- LAHSA operates as a joint city-county authority with its own procurement process, funded by both jurisdictions plus federal HUD dollars and Measure H.
Both the county and city run July 1 through June 30 fiscal years.
LA County Human Services Departments
Department of Children and Family Services (DCFS)
DCFS contracts with nonprofits for foster care, family preservation, family reunification, adoption services, and child abuse prevention. These contracts carry intensive compliance requirements — DCFS audits are thorough, and documentation standards reflect the vulnerability of the population served.
Contract sizes range widely. Large foster family agencies may hold contracts in the tens of millions. Prevention and early intervention contracts are typically smaller. DCFS publishes RFPs on eBid and its departmental website.
Department of Mental Health (DMH)
DMH is one of the largest direct operators and contractors of mental health services in the country. Nonprofit contracts cover outpatient mental health, Full Service Partnership (FSP) programs, crisis services, and co-occurring disorder treatment. Mental Health Services Act (MHSA / Proposition 63) funding and Medi-Cal billing create complex revenue structures for DMH contractors.
For compliance considerations specific to LA County mental health contracts, see the LA County mental health grants compliance guide.
Department of Public Health (DPH)
DPH contracts for substance use treatment, HIV/AIDS services, maternal and child health, communicable disease control, and environmental health programs. Many DPH contracts are federally funded (CDC, SAMHSA, HRSA pass-through), layering federal compliance requirements on top of county requirements.
Department of Public Social Services (DPSS)
DPSS administers CalWORKs, CalFresh, Medi-Cal eligibility, and General Relief. Nonprofit contracts typically involve employment services, benefits navigation, and supportive services for public assistance recipients.
LAHSA and Homelessness Funding
LAHSA coordinates the region’s response to homelessness, distributing over $800 million annually from multiple sources:
- HUD Continuum of Care (CoC) — federal funding for permanent supportive housing, rapid rehousing, transitional housing, and HMIS. Competitive applications submitted annually through LAHSA.
- Measure H — county sales tax revenue funding prevention, outreach, interim housing, rapid rehousing, and employment services. LAHSA and county departments administer these funds through contracted nonprofits.
- City and county general fund — discretionary allocations from both jurisdictions.
LAHSA contracts require participation in the Coordinated Entry System, HMIS data entry, and detailed outcome reporting. The compliance burden is significant — organizations must track client-level data, housing placements, and service utilization on strict timelines.
Measure H’s scheduled sunset in 2027 creates strategic planning pressure. Organizations building programs around Measure H funding should track renewal efforts and build contingency plans. The political dynamics around Measure H renewal are active and uncertain.
City of Los Angeles Funding
HCIDLA Housing and Community Development
The city’s housing department administers federal CDBG and HOME funds within city limits. CDBG funds community development activities — affordable housing rehabilitation, economic development, public services, and infrastructure. HOME funds affordable housing development and tenant-based rental assistance.
CDBG public services funding is capped at 15% of the city’s total CDBG allocation by federal statute, which limits the pool for direct service nonprofits. Housing development and rehabilitation take the larger share. Applications typically open annually aligned with the city’s Consolidated Plan and Annual Action Plan cycles.
City Council Discretionary Funding
Like New York, LA City Council members have discretionary funding authority. Each of the 15 council districts can direct funding to local nonprofits for community services. The amounts are smaller than county funding but more accessible to community-based organizations with council member relationships.
Department of Cultural Affairs (DCA)
The city’s DCA provides grants to cultural organizations through several programs, including the Los Angeles Arts Community Partnership (LACAP) and organizational grant programs. Funding levels have historically been modest compared to NYC’s DCLA, but the programs provide meaningful support for mid-sized cultural organizations.
The Procurement Process
LA County eBid
County solicitations post on eBid with response timelines typically 30 to 45 days. The process:
- Register as a vendor on eBid.
- Monitor eBid and department websites for relevant RFPs.
- Submit proposals per RFP specifications — typically including a program narrative, budget, organizational capacity documentation, and required certifications.
- Evaluation panels score proposals. Shortlisted organizations may present or interview.
- Board of Supervisors approves contracts above departmental thresholds.
- Contract negotiation, insurance verification, and execution follow.
Risk assessment by the county’s Auditor-Controller is required for many contracts and can add weeks or months to the timeline.
Building a Track Record
New organizations face a structural disadvantage in LA government procurement. Most RFP evaluation criteria weight past performance and organizational capacity heavily. The practical path:
- Start with subcontracting. Partner as a subcontractor with an established organization that holds county or LAHSA contracts. This builds documented performance history under government compliance standards.
- Pursue smaller contracts. DPSS employment services, DPH prevention programs, and LAHSA outreach contracts tend to be more accessible to newer organizations than large DMH or DCFS contracts.
- Build compliance infrastructure first. Before pursuing large contracts, invest in accounting systems that support government cost reporting, fund tracking, and audit preparation. County auditors expect clean financials and documented internal controls.
- Layer with foundation funding. LA’s foundation landscape provides complementary funding that can support capacity building while you develop government contracting readiness.
Compliance Realities
LA County and city contracts impose compliance requirements that many nonprofits underestimate:
Cost allocation. Organizations holding multiple government contracts must maintain cost allocation plans that properly distribute shared costs (rent, administration, finance) across funding sources. Unallowable costs under one funder may be allowable under another. Track this at the transaction level, not in year-end adjustments.
Audit requirements. Federal pass-through contracts trigger single audit requirements at the $750,000 federal expenditure threshold. County-only contracts have their own audit thresholds and requirements. Some departments conduct program-specific audits independent of the annual financial audit.
Data and reporting. LAHSA requires HMIS data entry within strict timeframes. DMH requires electronic health record documentation. DCFS requires case management system entries. Each system has its own data standards, and late or incomplete data entry can trigger corrective action plans.
Insurance maintenance. Letting insurance certificates lapse — even briefly — can freeze contract payments. Calendar insurance renewal dates well in advance and ensure the county or city is continuously named as additional insured.
Managing these overlapping requirements across multiple government funders is where grant tracking software earns its cost back quickly. Manual tracking across county, city, and LAHSA contracts with different fiscal years, reporting deadlines, and compliance standards is a primary source of organizational failure.
Strategic Considerations
LA’s government funding environment rewards organizations that think in systems, not individual grants. The most sustainable LA nonprofits typically hold a portfolio of county, city, LAHSA, and foundation funding that cross-subsidizes and creates operational resilience.
The Measure H question looms over the homelessness sector specifically. Organizations heavily dependent on Measure H funding should diversify now rather than waiting for the sunset deadline. Tracking these funding shifts alongside foundation cultivation and individual giving requires the kind of unified view that nonprofit management platforms are built to provide.
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- eBid
- LA County's online procurement portal where departments post solicitations, accept vendor registrations, and manage the bidding process for county contracts.
DEFINITION
- Measure H
- A quarter-cent LA County sales tax approved by voters in March 2017, generating approximately $355 million annually for homelessness prevention and services. Administered through multiple county departments and LAHSA.
DEFINITION
- LAHSA
- The Los Angeles Homeless Services Authority, a joint powers authority of the City and County of Los Angeles created to coordinate and fund homelessness services across the region.
DEFINITION
- Coordinated Entry System (CES)
- LA County's system for assessing and prioritizing people experiencing homelessness for housing and services. Nonprofits holding LAHSA contracts typically operate within this system.
DEFINITION
- HCIDLA
- The City of Los Angeles Housing and Community Investment Department (recently renamed), which administers CDBG, HOME, and other city housing and community development funding for nonprofits.
DEFINITION
Q&A
What are the main sources of LA government funding for nonprofits?
The largest sources are LA County human services departments (DCFS, DMH, DPH, DPSS), LAHSA for homelessness services, and the City of LA's HCIDLA for housing and community development. County departments distribute the bulk of funding through contracts procured via eBid. LAHSA combines federal HUD Continuum of Care funding with Measure H sales tax revenue. City HCIDLA administers federal CDBG and HOME funds within city limits.
Q&A
How does Measure H funding work for nonprofits?
Measure H revenue flows through LA County departments and LAHSA, not directly to nonprofits. Organizations access Measure H funding by responding to solicitations from these entities. Funded strategies include prevention and diversion, outreach and engagement, interim housing, rapid rehousing, and supportive services. Contracts typically run one to three years with renewal options, subject to continued Measure H revenue.
Q&A
What is the timeline for getting an LA County contract?
From RFP response to executed contract, expect 4 to 12 months. County procurement requires proposal evaluation, board of supervisors approval for larger contracts, risk assessment, and insurance verification. LAHSA contracts follow a similar timeline. Many organizations begin delivering services under interim agreements while full contract execution is pending.
Frequently asked