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HomeMy WebLinkAboutItem 6g - Consideration of Funding Priorities for the DEI High Impact Grant Item 6g Department: Administration Cost Center: 1010 For Agenda of: 6/16/2026 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Samantha Vethavanam, Diversity, Equity, and Inclusion Admin Specialist SUBJECT: CONSIDERATION OF FUNDING PRIORITIES FOR THE DEI HIGH IMPACT GRANT RECOMMENDATION As recommended by the Human Relations Commission, approve the Diversity, Equity, and Inclusion High Impact Grant funding priorities for future grant cycles including, and starting with, Fiscal Year 2026-27. POLICY CONTEXT The purpose of the Human Relations Commission (HRC) is to advise and make recommendations to the City Council and the City Manager which promote and advance inclusion, mutual understanding, respect, and equitable treatment to all San Luis Obispo community members. The Diversity, Equity, and Inclusion (DEI) High Impact Grant provides financial support to non-profit organizations for programs and projects that advance equity and inclusion in the City. This grant program advances the current DEI Major City Goal workplan by facilitating programs and initiatives to support diverse community engagement and representation and by increasing access and belonging for all community members. DISCUSSION Background The DEI High Impact Grant was created in 2020 to enhance a sense of belonging for all people in the San Luis Obispo community and to support local projects, programs, or initiatives that contribute to creating a San Luis Obispo that is welcoming, inclusive, equitable, and safe. The funding initially focused on narrowing equity gaps that have disproportionately impacted historically marginalized communities. City Council approved a total of $559,800 in DEI High Impact Grants between 2020 and 2023 using the original funding priorities and information from 2020. Between December 2023 and March 2024, the Office of DEI worked with the HRC to update and streamline the funding priorities and other information for the DEI High Impact Grant, including through a noticed Public Hearing in December 2023 to receive feedback from the public. Page 93 of 476 Item 6g The City Council approved the funding allocations for that year based on the revise d funding priorities on December 10, 2024. On June 4, 2025, the Office of DEI brought said DEI High Impact Grant funding priorities and information back to the HRC to confirm and/or further revise them in advance of the next two funding cycles. The HRC made a few edits and approved the DEI High Impact Grant funding priorities and information document as amended at that same meeting. Subsequently, on July 15, 2025, City Council approved the revised funding priorities and information. This approval was meant to extend to the 2026-27 grant cycle, in addition to the 2025-26 grant cycle, and the Office of DEI planned to bring back the funding priorities and information to the HRC and then to City Council every two years for approval and/or revision. The funding priorities and information document that was used for the last DEI High Impact Grant funding cycle is included as Attachment A. However, due to several conversations and feedback from individuals involved in t he grant making process, it was proposed to staff that the current DEI High Impact Grant recommendation process might be streamlined and improved with the implementation of more specified and separate funding priority areas, rather than the current general priority:  Funding should primarily focus on advancing and implementing diversity, equity, and inclusion through innovative practices that seek to narrow equity gaps and address intractable, systemic, and structural issues. Proposed New Funding Priorities To be responsive to these suggestions, Office of DEI staff worked through a proposed set of priority areas that could be included under the DEI High Impact Grant. These proposed priority areas were created with current needs and past applications in mind . Staff had internal discussions and went through rounds of revisions to determine a succinct set of four proposed priority areas that captured the community’s needs as it related to diversity, equity, inclusion, access, and belonging while remaining disti nct from the Human Services Grant’s funding priorities. On April 1, 2026, staff brought the proposed priority areas to the HRC for their feedback and approval during their regular meeting. The HRC provided edits to priorities #1 and #4 as well as edits to the introductory section and subsequently approved them as amended. The HRC also decided not to rank the priorities. Attachment B includes the recommended DEI High Impact Grant priorities as approved by the HRC. These priorities include (not listed in any order of importance): 1) Advancing Belonging: Support projects that strengthen connection, build community resilience and cultural awareness, and promote the experience of belonging among community members across the City of San Luis Obispo. Page 94 of 476 Item 6g 2) Increasing Access: Invest in efforts that actively remove barriers and expand opportunities for all community members to engage in civic and community life across the City of San Luis Obispo. 3) Advancing Structural and Institutional Equity: Support organizations to build the long-term capacity for inclusion and belonging in the City of San Luis Obispo. 4) Improving Community Health and Wellbeing: Fund programs that improve quality of life for City residents and that address systemic barriers through access to wellness resources, education that builds awareness, and community support systems. Attachment B also include examples under each priority that will be included on the Office of DEI website, within the section for the DEI High Impact Grant , so applicants have a clear understanding of what fits within each. These recommended priorities, if approved, would supersede and replace the singular, general priority listed above. The addition of these priorities is the only change that is being proposed for the DEI High Impact Grant Notice of Funding Availability (NOFA), which will be open to the public in mid-July for the 2026-27 grant cycle. Potential applicants will also be able to learn more about the grant’s requirements, and new priorities (if approved) during one of two information sessions which will be held prior to the grant period opening. One information session will be held in person in the morning and the other virtually in the afternoon, to provide various options for potential applicants. The virtual session will also be recorded and uploaded the DEI High Impact Grant webpage. Nonprofits interested in applying will be required to review the recording of, or attend in person or virtually at, one of these information sessions. Additionally, technical assistance hours will be offered for those who have more specific questions. Previous Council or Advisory Body Action Council approved DEI High Impact Grant information and priorities for the 2025 -26 funding cycle on July 15, 2025, as stated above. Public Engagement The regular meeting of the HRC held on April 1, 2026, during which the proposed funding priorities were presented, was a publicly noticed meeting where interested individuals were welcome to provide public comment on the proposal. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommende d action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. Page 95 of 476 Item 6g FISCAL IMPACT Budgeted: N/A Budget Year: 2026-27 Funding Identified: N/A Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund N/A N/A $ $ State Federal Fees Other: Total N/A N/A $ $ There is no fiscal impact associated with the recommendation to approve the DEI High Impact Grant funding priorities. ALTERNATIVES 1. The Council could revise and adopt different funding priorities. If Council decides to revise and adopt different funding priorities and information for the upcoming DEI High Impact Grant, staff would request specific guidance on final funding priorities during the Council meeting, since the NOFA is scheduled to be published on July 20th with information sessions held the week prior. 2. The Council could continue consideration of the funding priorities . If Council decides to continue consideration of the funding priorities for the upcoming DEI High Impact Grant, staff would request direction regarding additional information needed to make a decision. This may delay the timeline for posting the NOFA for the grant. 3. The Council could provide direction to the HRC to consider alternative changes to the funding priorities. If Council decides to provide direction to the HRC to amend the funding priorities, Council would need to continue consideration of the item and provide direction to the HRC. This may delay the timeline for posting the NOFA for the grant. 4. The Council could decide not to approve the funding priorities. If Council decides not to approve the funding priorities, staff would rely on the previously approved DEI High Impact Grant funding priority for the 2026-27 NOFA. ATTACHMENTS A - Current DEI High Impact Grant Funding Priorities and Information B - Proposed DEI High Impact Grant Funding Priorities Page 96 of 476 DEI High Impact Grant Revised Funding Priorities and Information DRAFT – 6/4/2025 Statement: The DEI High Impact Grant provides financial support to non-profit organizations to enhance the sense of belonging for all people in the community of San Luis Obispo. This funding allocation is an effort to uplift and support local projects, programs, and initiatives that contribute to creating a San Luis Obispo that is welcoming, inclusive, equitable, and safe. The scope of equity and inclusion work is inherently broad and complex, and the funding seeks to support initiatives that show understanding of root cause issues and intractable problems, can demonstrate measurable success, and will contribute to some aspect of systemic change. Funding Priorities: Funding should primarily focus on advancing and implementing diversity, equity, and inclusion through innovative practices that seek to narrow equity gaps and address intractable, systemic, and structural issues. Illustrative examples of systemic/structural issues include: 1. Availability of affordable housing development and access to housing. 2. Access to culturally and linguistically appropriate behavioral health services. 3. Impact of poverty and unemployment. 4. Diversity in government and governing institutions. 5. Racial and socio-economic disparities in the criminal justice system. 6. Environmental justice and equitable access to sustainable resources. 7. Equity in access and representation in decision-making processes and leadership roles. 8. Civic engagement related to voter representation and election education. 9. Diversity of employers and work programs. Funding Examples: DEI High Impact Grant funds can be used for innovative, new or existing projects, initiatives, and ongoing programs to reduce equity gaps and improve social justice initiatives for underserved and underrepresented communities in the City of San Luis Obispo. Proposal may focus on specific underserved and underrepresented communities, but all projects, applications, and concepts must provide access to the entire City of San Luis Obispo community-at-large and contribute to a positive systemic/structural change. Page 97 of 476 Examples of previously funded activities include: (examples are illustrative and not ranked) • Enhancing language access for Spanish-speaking community members in public historical exhibits. • Expanding access to education and knowledge on social services programs by developing public how-to videos in English, Spanish, and Mixteco. • Creating cultural spaces for learning purposes to expand community building and belonging for all. • Enhancing board leadership programs to include a diversity lens to create more inclusive governing bodies and government organizations. • Providing and enhancing ally or advocacy training programs designed to build community momentum and social justice. • Public community art projects designed to uplift and bring social awareness of social cause issues impacting equity, communication, and stories of underserved and underrepresented communities. • City-wide trainings and panel discussion events on sensitive topics that create awareness, equity, belonging, and challenges exclusive narratives. Funding Requirements 1 Complete and submit a grant application (must include) 1.1 One-page DEI Statement that includes: 1.1.1 Applicant’s understanding and application of DEI concepts/values 1.1.2 Affirming language that creates access and a sense of belonging to all community members. 1.1.3 Explain how the proposal will advance DEI in the City of SLO. 1.2 One-page detailed budget for the proposal including how the total amount requested will be allocated. 1.3 Organizational chart (if joint application, all organizations must provide chart) 1.4 Document certifying Federal Tax-Exempt Status 2 Applicants must demonstrate core values of justice, equity, diversity and inclusion in their purpose/mission statement and daily operations and have been providing DEI-related initiatives or programs within SLO County for at least two (2) years prior to application. (The proposal can be for something new, but the recipient organization must have been operating locally for at least two [2] years.) 3 Grant recipients must enter into a contract with the City prior to receipt of DEI funds, the form of which can be found here: Download sample contract. 4 Grant recipients must complete periodic impact reports and provide them timely 5 Grant recipients must submit a final impact report at the end of project or at 12 months from start, whichever comes first. Grant recipients will be expected to return unused funds. Download sample report. Page 98 of 476 Funding Criteria 1 Applicants must be a registered 501(c)(3) non-profit organization, government or education entity, or faith-based organization 2 100% of the funded activities must occur in the City of San Luis Obispo. 3 Funded activities must primarily serve City residents. Applicants that provide services to neighboring communities, but also serve a significant number of City residents, will be considered. 4 Requests must be for programs or services with the ability to show measurable impact and success. New creative approaches that are rooted in best practices or evidence-based, as well as proven approaches, are highly encouraged. 5 Collaborations between one or more organizations or groups are welcome and encouraged. At least one organization in the partnership needs to be an eligible entity noted above. Additional Funding Information 1 Single applicants’ minimum request of $5,000 and a maximum request of $20,000 2 For partner applications (two or more applicants) there is no minimum dollar amount request, but the maximum request is $40,000. A lead organization must be identified in the application. The lead organization must be an eligible entity and must act as the fiscal agent. All parties must enter into the contract. 3 A maximum of one (1) grant award is allowed per organization (or per partnership if a collaborative project) 4 Funding may be used for new (innovative) or existing projects, programs, concepts, or initiatives that have proven success and/or utilize best practices or innovative approaches. Funding may also be used for a one-time service that has long-lasting impacts. 5 Innovative projects, programs, concepts, and initiatives are highly encouraged. 6 Projects, programs, concepts, and initiatives that leverage existing or other funding sources to supplement proposal are highly encouraged. Prohibited Use of Funds 1 Funds CANNOT be used for advancing, campaigning, advocating, promoting, or highlighting political entities, ballot measures/initiatives, or candidates. 2 Funds CANNOT be used for advancing, advocating, promoting, or highlighting religious causes, entities, individuals, or activities. Funding CANNOT be used for the purpose of disseminating religious information in any form. 3 Funds CANNOT be used for profit or personal gain. Page 99 of 476 Funding Decisions The Human Relations Commission (HRC) will exercise discretion when developing funding recommendations. The HRC will review, with support from the Office of Diversity, Equity, & Inclusion, all applications (that are completed, timely submitted, and meet the funding criteria) and develop funding recommendations based on the answers and attestations provided in each application. Recommendations will be presented to the City Council for approval. Final funding decisions are at the sole discretion of the City Council. Proposals will be evaluated for meeting an identified and defined intractable/systemic/structural problem or need, potential to succeed, ability to make a high impact, or advance systemic change, and for centering efforts to address inequities for underserved and underrepresented communities while serving all community members. Page 100 of 476 City of San Luis Obispo – DEI High Impact Grant: Proposed Funding Priorities Projects may focus on supporting specific underserved or underrepresented communities; however, all proposals must be open and available to all individuals without regard to the resident’s race, religion, sex, national origin, sexual orientation, age, or ability/disability. The DEI High Impact Grant prioritizes innovation – encouraging creative, forward-thinking approaches that drive meaningful change and foster belonging across the City. Collaborative and partnership-based applications are highly encouraged, especially those that bring together community organizations and City residents to build sustainable and inclusive impacts. Funded projects should contribute positively to systemic or structural changes that strengthen inclusion and experiences of belonging across the City of San Luis Obispo. 1. Advancing Belonging Support projects that strengthen connection, build community resilience and cultural awareness, and promote the experience of belonging among community members across the City of San Luis Obispo. Examples:  Initiatives that bring diverse groups together by reducing isolation through shared storytelling, arts, dialogue, and/or celebration.  Programs that create inclusive public spaces or community traditions that reflect and welcome the City’s diversity.  Cultural and community-building events that promote cross-cultural understanding and celebrate diverse identities.  Efforts that increase representation in civic or public spaces, such as inclusive public art or storytelling projects that reflect the community. 2. Increasing Access Invest in efforts that actively remove barriers and expand opportunities for all community members to engage in civic and community life across the City of San Luis Obispo. Examples:  Projects that increase access to community programs, boards, or events within the City, including but not limited to language access, transportation, outreach, and digital inclusion.  Inclusive communications and outreach strategies that improve accessibility across languages and for people with abilities/disabilities.  Digital equity initiatives that expand access to technology, broadband, and digital literacy.  Efforts that help residents better understand how to get involved in local decision- making, leadership opportunities, or civic processes. 3. Advancing Structural and Institutional Equity Page 101 of 476 Support organizations to build the long-term capacity for inclusion and belonging in the City of San Luis Obispo. Examples:  Trainings, workshops, or mentorship programs that grow inclusive leadership and organizational skills.  Efforts that strengthen networks among community-based organizations, City departments, and residents.  Equity evaluations and capacity-building within organizations to strengthen Diversity, Equity, and Inclusion practices, recruitment, and retention.  Community engagement trainings to ensure more inclusive public processes and decision-making.  Data and evaluation projects that can improve disparities and outcomes by race, gender, ability/disability, or other identity markers.  Workforce development programs that create career pathways, especially those that are centered around getting underrepresented groups into high-paying or growing sectors. 4. Improving Community Health and Wellbeing Fund programs that improve quality of life for City residents that address systemic barriers through access to wellness resources, education that builds awareness, and community support systems. Examples:  Health equity projects, especially addressing social determinants of health (e.g., food and water access, transportation).  Mental health and trauma-informed programs.  Improving life skills, financial literacy, learning and education. Note: The above funding priorities does not include housing or homelessness-related services, which are addressed through the City’s Human Services Grant program. Page 102 of 476