STATE ASSEMBLYWOMAN JENIFER RAJKUMAR INTRODUCES "GET NONPROFITS PAID" ACT TO REQUIRE PROMPT CITY PAYMENTS TO NONPROFIT VENDORS

 

ASSEMBLYWOMAN’S BILL REQUIRES PAYMENT IN 30 DAYS, ENDING MONTHS OF WAITING AND DELIVERING OVER $12 BILLION TO OUR NONPROFITS 

Assemblywoman Jenifer Rajkumar proudly introduced the “Get Nonprofits Paid” Act, a groundbreaking bill that will ensure prompt payments to the many nonprofits doing work for New York City. Under her bill, the City will be required to pay nonprofit vendors within 30 days.

The Assemblywoman’s bill will end the massive wait times nonprofits endure to receive payments from New York City. In Fiscal Year ‘22, three-quarters of the City’s contracts with nonprofits were not even registered before the start date, and regularly took 9 months to process. Nonprofits have to provide services while waiting for payment, with many resorting to interest-bearing loans to meet payroll and other expenses.

New York City has over $12 billion in contracts with nonprofits for an array of essential services. These include foster care, supportive housing, crime prevention, immigrant services, senior care, and community outreach. Nonprofits provide high quality, cost-effective services, often with unique cultural and language competencies for the City's diverse communities.

The Get Nonprofits Paid Act is similar to existing State and Federal laws on promptly paying contractors. It contains exemptions if the New York City Comptroller can provide an interest-free loan in lieu of payment, or if contracts are for response to a declared State of Emergency.

Assemblywoman Rajkumar said, “We must end the era of nonprofits being paid months and even years too late. Our nonprofits provide critical services for the most vulnerable New Yorkers, and we must provide for them by getting them the funding they are owed. Paying our nonprofits on time gives them the financial support and security they need to thrive.”

The Get Nonprofits Paid Act continues Assemblywoman Rajkumar’s work to expedite New York City contracting. This year she passed A8864, moving the public comment process for contracts online. This bill will cut project delivery time by an average of 20 days.