State contract freeze hits thousands of charities

June 24, 2020

As New York seeks to recover from the economic turmoil of COVID-19, thousands of nonprofits that receive state funding are facing financial uncertainty, including many serving low-income families.


Facing what state officials contend is a $13.3 billion shortfall in this year’s budget, Cuomo administration agencies have informed nonprofits in recent weeks that payments are being delayed, and new contracts are on hold, while the state seeks fiscal relief from the federal government.


Doug Sauer, CEO of New York Council of Nonprofits, said “thousands” of nonprofits that get state funding are in jeopardy of seeing it cut or stricken.


Nonprofits that have multi-year contracts with state agencies are being told they may not get the full amount, Sauer said. Others, which have rendered services under existing state contracts, have often not been reimbursed by the state.


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