Assemblywoman Jenifer Rajkumar introduced the “Get Nonprofits Paid” Act on Monday, December 2nd. The bill requires New York City to pay nonprofit vendors within 30 days and aims to address chronic payment delays that have financially burdened these essential service providers.
Nonprofits providing essential services for the city often face significant payment delays. In Fiscal Year 2022, three-quarters of the city’s contracts with nonprofits were not registered on time, resulting in payment processing times of up to nine months. As a result, many organizations are forced to take out interest-bearing loans to cover payroll and other operational expenses.
“Nonprofits provide critical services for the most vulnerable New Yorkers, and we must provide for them by getting them the funding they are owed,” Rajkumar said. “Paying our nonprofits on time gives them the financial support and security they need to thrive.”
New York City contracts over $12 billion annually with nonprofits, supporting foster care, supportive housing, crime prevention, immigrant services, senior care, and community outreach. These organizations often operate with unique cultural and language competencies essential in serving the city’s diverse population.
The act aligns with existing state and federal laws that mandate prompt payment to contractors. It also includes exemptions for situations where the city comptroller can provide interest-free loans or when contracts are related to declared states of emergency.
This legislation builds on Rajkumar’s earlier efforts to streamline city contracting processes. Earlier this year, she passed A8864, a bill that transitioned the online public comment process for contracts, reducing project delivery times by an average of 20 days.
“We must end the era of nonprofits being paid months and even years too late,” Rajkumar emphasized, adding that timely payments will empower nonprofits to continue providing high-quality, cost-effective services.
The proposed legislation reflects a broader push to strengthen the city’s partnership with nonprofit organizations, ensuring they can operate without financial uncertainty while delivering essential support to New Yorkers.
