NONPROFITS IN PERIL

Common Sense Solutions to Stop Jeapordizing Critical Services for New Yorkers

MAY 2025

PREPARED BY:

  • Human Services Council of New York

  • New York Council of Nonprofits

  • New York Legal Services Coalition

  • Nonprofit New York

  • Nonprofit Westchester

NEW YORK’S SAFETY NET IS IN JEAPORDY.

The State has long contracted with nonprofits to provide essential services to communities across New York. But persistent delays in payment, an over-reliance on nonprofits to front costs, and a burdensome contracting process have undermined the sector’s stability for decades.

“Every two weeks I go through the same anxiety- will we have enough cash to pay payroll? It’s like Groundhog Day. ”
— Nonprofit Leader in NY

Contents

The Problem

  • Introduction 04

  • Sample Challenges Faced by Nonprofits 05

  • Urgency of Payment and Contracting Reform 05

A Legislative Solution

  • Key Bill Components 06

  • Mitigating the Impact of Contracting Delays 07

  • Mitigating the Likelihood and Impact of Payment Delays 09

  • Not-for-profit Short-Term Revolving Loan Funs 09

Non-Legislative Steps

  • Ensuring Continuity of Services 10

  • Pursue Systems-Wide Effiencies 10

Additional Legislation

  • S2075 Mayer/ A506 Paulin 11

  • S2262 Cooney/A5659 Zinerman 11

  • S5756 Cleare/A5677 Zinerman 11

Nonprofit Experiences

  • Contracting stories 12