Nonprofits receiving government contracts often face long delays in payment for their services, which can extend to months or years. These delays create serious cash flow issues, especially for smaller organizations with limited financial reserves, forcing them into loans or reductions in staff and services. In New York City, a report highlighted a staggering backlog of 4,000 unpaid invoices worth $861 million. The state level mirrors this struggle, with nonprofits owed $650 million, complicating their ability to provide necessary public services and leading to financial strain across the board.
Nonprofits that receive government contracts and grants experience significant delays in payments, often waiting months or years for reimbursement after services are rendered.
Delays in contracting processes exacerbate cash flow issues, particularly for smaller nonprofits, leading to potential layoffs, program cuts, or closures.
A New York City comptroller report revealed a backlog of 4,000 unpaid invoices totaling $861 million owed to nonprofits for vital services.
At the state level, nonprofits are owed $650 million, highlighting widespread financial strain and jeopardizing their ability to deliver essential public services.
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