Adams administration cracks down on late payments to nonprofits

Facing a persistent backlog of delayed payments to nonprofits, New York City Mayor Eric Adams will sign an executive order today to  create better communications between city government and providers, New York Nonprofit Media can exclusively report

Adams will instruct city agencies which have contracts with nonprofits to designate a chief nonprofit officer to report to the Mayor’s Office of Nonprofit Services and Mayor’s Office of Contract Services in order to help nonprofits get paid faster.  The Law Department is also mandated to appoint an attorney that will provide legal advice and systemic reform recommendations to MOCS and MONS.

The initiative is part of the administration’s ongoing response to improve the flow of funds to the service agencies that work with the city who have complained about late payments and lack of equitable salary and benefits.  Additionally, the executive order establishes an internal MOCS and MONS-led performance dashboard to track contract registration and payments, furthering the administration's data-driven approach.

The responsibilities of each agency's chief nonprofit officer will include coordinating with MONS and MOCS, to respond when nonprofits reach out, and accelerate both payments and overall communication with nonprofits

“Nonprofits never hesitate to answer the call for help. Now, it’s time for government to answer the nonprofit sector’s call for help,” Adams said in a press release. “This common sense executive order allows for better, smarter communications, creating direct point people in key city agencies focused on answering any and all questions from nonprofits. I look forward to our continued partnership with our nonprofit partners and ensuring they receive the timely support they deserve.”

The executive order enhances communication both within city agencies and with external nonprofits. The designated chief nonprofit officers will streamline interactions with MONS and MOCS, ensuring agency accountability through performance data, acting as agency representatives, and promptly addressing nonprofit concerns. They will also guide nonprofits through city processes, supporting the city's mission to guarantee timely payments for contracted work and other funding opportunities.

“There is $20 billion dispersed across agencies…governments are people powered-systems,” Michael Sedillo, executive director of the ayor's Office of Nonprofit Services executive director, told New York Nonprofit Media by telephone. “This executive order is about organizing and aligning our people, broadly speaking, toward our interest and in moving towards a data driven approach. We bring the highest levels of city government together weekly to discuss solutions and in that venue we will be very laser focused on the data. At its core, government is about the effective organization and alignment of people.”

Earlier this month, Adams announced progress on several new efforts to help pay nonprofit providers faster.  This came after the Adams administration  “cleared  the backlog”  of overdue invoices due to nonprofits which has unlocked over $6 billion in funds  that were long overdue.

Additionally, a working group, led by Deputy Mayor for Strategic Initiatives Ana Almanzar was launched to meet weekly to examine contract performance data and make key programmatic, policy, or budgetary decisions that support expeditious nonprofit payments.

Last March the mayor’s office bolstered salaries for nonprofit workers in service of the city with a $741 million investment for an estimated 80,000 human services workers as part of a new cost-of-living adjustment. 

Adams most recently announced the creation of the city’s first-ever Nonprofit Advisory Council. Comprised of leaders and experts in the nonprofit sector, the advisory council works with MONS to serve as a link between the Adams administration and the nonprofit organizations serving New Yorkers.

“Having a Chief Nonprofit Officer imbedded in city agencies is akin to having an advocate on staff, President and CEO of Lutheran Social Services of New York Damyn Kelly, J.D told NYN Media in an email statement. “Being able to communicate directly with someone who can work with you on contracts, payment and other issues should minimize the time it takes to receive a response to inquiries that impact your ability to do the meaningful work that we are contracted for.” 

“I see this as a positive development,” Kelly added, “in strengthening the relationship between government and its contracted nonprofit providers.”