Nonprofits Are Not NYC’s Bank: VOA-GNY on Mayor’s Consideration of Delaying Nonprofit Payment Law 

Volunteers of America-Greater New York released the following statement in response to Mayor’ Mamdani’s consideration of delaying nonprofit contract law: 

“We are alarmed by reports that Mayor Mamdani is considering delaying the implementation of New York City’s new nonprofit contract law, which ensures timely payments to nonprofits providing critical services to New Yorkers in need.  

The law was passed to address a longstanding crisis of delayed payments to nonprofits—amounting to millions of dollars—that has forced providers to front the City’s costs for shelter, healthcare, domestic violence services, and other essential programs.  

Any delay, of any amount, would have a serious and immediate impact on our programs, our workforce, and the New Yorkers who depend on these services. 

VOA-GNY is currently owed nearly $24M from the City, in some cases for services rendered as far back as 2021. We are not alone. Hundreds of nonprofits are forced to rely on costly private loans and divert funds to cover non-reimbursable interest expenses to bridge the gap created by city reimbursement delays—money that could otherwise be invested in improving the lives of New Yorkers or delivering hard-earned cost-of-living increases to working-class human services staff. 

Nonprofits support the City in battling the affordability crisis by implementing its boldest policy initiatives, from social services to affordable housing development. Delaying payments would not resolve the cash flow challenge; it would simply shift the burden from the City to the nonprofit sector and its workforce. 

Nonprofits cannot continue to serve as the City’s bank. We urge Mayor Mamdani to turn the page on this old playbook, fully implement the law as enacted, and work with nonprofit providers to address the City’s fiscal challenges without undermining the essential services that keep our communities housed, safe, and healthy.”