Administered by CalOSBA and managed by CA for the Arts.

What is the Performing Arts Equitable Payroll Fund Program?

Senate Bill 1116 (Portantino) (Government Code 8757) established the Performing Arts Equitable Payroll Fund Program to support small nonprofit performing arts organizations (SNPAOs) with adjusted gross revenue under $2 million, in hiring and retaining employees. The Fund reimburses a portion of their payroll costs on a quarterly basis, using a tiered reimbursement schedule where the smallest organizations receive the highest percentage of reimbursement.

To qualify the performing arts organization’s primary mission must be the creation of or presentation of performing arts, in productions that are advertised and open to the public.

Example of SNPAOs can include:

• Nonprofit theater companies
• Nonprofit dance companies
• Nonprofit choral groups
• Nonprofit presenting organizations
• Nonprofit performance venues
• Local arts councils (that present or produce performances)

In addition to 501(c)3 nonprofit performing arts organizations Model C fiscally sponsored organizations are also eligible to apply, but they must be operating under a Model C agreement. Model C fiscal sponsorship is where the fiscally sponsored organization is a separate legal entity and for this program cannot be an individual artist.

Certain types of organizations are not eligible:

• After school programs for youth.
• 501(c)(3) Nonprofit organizations that raise money for a single arts organization.
• Conservatory programs.
• Foundations.
• Individual artists who are fiscally sponsored.
• Model A, Model B, Model D, Model F, or Model L fiscally sponsored organizations or projects.
• Social clubs.
• Summer camps.
• Youth educational programs or schools.
• Youth performing arts groups, including, but not limited to, youth symphonies, youth choirs, and youth theater groups.
  

Program Guidelines

Submit this form to download the Program Guidelines, which will cover eligibility, the application process, and information to help you prepare to apply when the grant opens.

Timeline & Process

• Applications will be reviewed on a first-come-first-serve basis. The eligibility is determined by the submission of a series of documents and pieces of information. There is no narrative element to the process.
• Along with the application, organizations will be required to submit their actual payroll expenses for both Q3 and Q4 of 2024, and projected payroll expenses for Q1 and Q2 of 2025.
• Following the end of both Q1 and Q2 2025, approved organizations will then submit their payroll expense documentation for that quarter.
• Application portal will be opening in early March, an exact date will be announced soon.
• Regular Office hours will be held to answer questions and offer technical support regarding the eligibility criteria and application process. Those dates and times will be announced soon.

What Payroll Expenses Are Reimbursable?

Payroll expenses that are eligible for reimbursement are employee wages, worker’s compensation expenses, pension, retirement and health expenses, and payroll/paymaster fees. Payroll taxes and unemployment insurance are NOT eligible for reimbursement. 

Reimbursements are capped at $10,000 per employee per quarter.

Percentage of Reimbursement

PAEPF reimbursements are made at the percentage that corresponds to the organization’s adjusted gross revenue in the table shown below. In the case of Fiscally Sponsored Organizations, the adjusted gross revenue figure is for the Fiscally Sponsored Organization, not the Fiscal Sponsor.

The adjusted gross revenue, for these purposes, is the average annual revenue received over the preceding three years, in whatever form, received or accrued from whatever source, excluding funds received pursuant to Section 8753.6 and excluding revenue earmarked by the grantor or donor solely for capital expenditures or any pass-through funds collected for the benefit of another organization that is received during the tax year of an organization. Funds received pursuant to Section 8753.6 are California Arts Council funds received from special state funds such as the Keep Arts in Schools Fund and the Arts License Plate funds, but not the annual public grant program funds.

What can you do now to begin preparing?

Make sure you are in good standing with the IRS, Franchise Tax Board and California Secretary of State. Also, that you are in compliance with the California requirement on sexual harassment training.

There are a series of organization documents you will need to submit with your application. Complete details on these documents will be coming soon, but in the meantime you can begin collecting the following as PDF files to submit:

1. Internal Revenue Service (IRS) determination letter recognizing the organization as tax-exempt. 
2. Articles of Incorporation, including any amendments.
3. Certified Business Entity Certificate of Status, showing an Active status for the organization from the California Secretary of State.  
4. Organization’s Mission Statement
5. Organization’s DEI Policy, with the date it was adopted
6. Organization’s anti-harassment policy, with the date it was adopted
7. Last 3 990’s
8. Fiscal Sponsor Agreement - For Fiscally Sponsored organizations

Production-Related Eligibility Documents:

These documents are used to demonstrate that the applicant organization produces live events in the performing arts that are open to the public. 

For 3 productions from the last 5 years, submit 3 of the following documents. All documents should be PDFs. The maximum file size for these document is 10MB.

Document Types:
1. A box office report
2. Evidence of paid advertisements
3. Social media posts and internet website listings advertising the production
4. Email campaigns advertising the production
5. Reviews of the production
6. Playbill for the production

Example: An organization might submit the following documents from 3 productions that took place within the last 5 years:

1. Angels in America, 2021
   - box office report
   - evidence of paid advertisement
   - review
2. The Shot, 2023
   - evidence of paid advertisement
   - review
   - playbill
3. Helvetica, 2024
   - box office report
   - social media posts
   - Email campaign posts

If you are or know an organization that will need materials or support  in a language other than English please let us know via email at PAEPF@caforthearts.org.

The program will be administered by CalOSBA and managed by CA for the Arts. Questions can be directed to PAEPF@caforthearts.org. Follow CA for the Arts on social media, and subscribe to our newsletter to make sure you don’t miss any details.