NY Legislators Move to Lessen Long-Standing Nonprofit Contract Delays

A recent Central Current article highlights efforts being taken to address the challenge of delayed payments on state contracts to nonprofits.

Central Current recently published an article detailing New York State’s efforts to address a long-standing challenge for nonprofits: delayed payments on state contracts. Legislators have approved an overhaul that includes provisions such as 25 percent advance payments, interest on late reimbursements, and automatic contract renewals—steps designed to relieve the heavy financial strain nonprofits face when state funds are held up for months. While the bill still awaits the governor’s signature, its passage by lawmakers reflects growing recognition that these delays jeopardize essential services across the state.

For readers seeking a deeper look at how this issue has impacted our region, the Central New York Community Foundation’s issue paper, Payment Pending: CNY Nonprofit Funding Delays From the State Level, outlines the history and scale of the problem locally. Our analysis shows how chronic delays can force nonprofits to take out short-term loans, delay programming, or strain staff capacity. Together, these resources provide important context on a pressing challenge for the nonprofit sector and highlight why timely state funding is critical to sustaining community programs. View the Community Foundation’s impact investing page to learn about loans provided to local nonprofits experiencing delays.

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CNY Vitals is an initiative of the Central New York Community Foundation. The Central New York Community Foundation is a tax-exempt public charity. Its mission is to foster a thriving and equitable Central New York region by leading and inspiring a community culture of giving, celebrating legacy and stewarding charitable resources for today and tomorrow.