New York organizations: Executive Order could withhold funding indefinitely for non-profits

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ALBANY, N.Y. (NEWS10)- New York non-profit organizations say an Executive Order passed two weeks ago will delay the renewal of state contracts and payments forcing them to cut services to the states most vulnerable and to layoff employees. They also say they received no notification from the state when it was passed on July 6.

The state sets forth timelines for when contracts and payments must be given to non-profits. Executive Order 202.48 eliminates those restrictions says Chief Executive Officer at the New York Council of Non-profits, Inc., Doug Sauer.

Sauer says some non-profits have already gone months without state funds, and been operating on the hopes the state will renew their contract. He says non-profits operating without a contract are taking a risk of receiving no payment at all from the state. Sauer says if the state doesn’t prioritize non-profits services won’t be available for a community reeling from the effects of the coronavirus pandemic.

Executive Director at the Early Care and Learning Council, Meredith Chimento, says they are mandated by the state to be in operation despite lack of funding. She says with an uncertain future for schools, childcare, especially for those living in poverty, will be essential. When the demand for childcare spikes, Chimento says there may not be enough facilities or employees.

Harris Oberlander, chief executive officer at the Trinity Alliance of the Capital Region, says he’s concerned because despite the increase in drug use during the coronavirus pandemic, his organization has seen less referrals. He says the state funding of non-profits was already on shaky ground before the pandemic. He’s worried this is just the beginning of financial trouble for non-profits.

With fundraising capabilities stalled, Brenda Episcopo from the United Way of New York says there is no way for non-profits to make up for the shortfall in state funding. Episcopo says without funding, non-profit organizations who employ 18% of the state’s private sector workforce, will be facing job or wage loss.

Letter from non-profits to Governor Andrew Cuomo

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