Survey: NYC Nonprofits are Enduring Under Strain of Funding Pullbacks and Severe Government Payment Delays

Nonprofit Finance Fund’s 10th “State of the Nonprofit Sector Survey” Details Contributions and Health of City’s Community Infrastructure Organizations

NEW YORK , NY, UNITED STATES, September 17, 2025 /EINPresswire.com/ -- Nonprofit Finance Fund (NFF) has released a new report spotlighting urgent challenges facing New York City’s nonprofits, including significant delays in government payments compared to other areas of the country. This new analysis draws on findings from NFF’s national State of the Nonprofit Sector Survey.

The 13,000 nonprofits across NYC contribute nearly $78 billion per year to the economy— nearly 10% of the city’s GDP— and employ nearly 18% of all workers. They address critical needs including affordable housing, education, childcare, job training, arts and culture, healthcare, food distribution, and more.

“New York City’s nonprofits are vital community infrastructure,” said Aisha Benson, President and CEO of NFF. “A strong city requires strong nonprofits, and extreme payment delays put at risk the services nonprofits provide to our communities. While the City is taking steps to address these entrenched issues, right now the government is paying our nonprofits too little, too late.”

More than three-quarters (78%) of NYC nonprofits receive funding from federal, state, and/or local government. Of these, 32% reported being paid more than 90 days late, in contrast to 10% of other US nonprofits in NFF’s survey. Only 19% were paid on time, compared to 47% of other US nonprofits.

Government funding delays have been longstanding and severe across NYC nonprofits, with critical services to New Yorkers hanging in the balance. In 2024, over 90% of the human services contracts that NYC government had with nonprofits were registered late. At most government agencies, the first payments to human services providers came an average of 6.5 months after the contract’s start date. This means that nonprofits must front the cash for salaries, rent, and other expenses for more than half a year.

To cope with delays, survey respondents reported taking on debt (45%), delaying payment to vendors (29%), and drawing on their savings (29%) to continue operating amidst delays, with 12% having to pause or reduce services.

“NYC's contract registration is so slow we do not receive our grant funds until we are 10 months into the contract year,” said one human services nonprofit survey respondent. “Staff may have to go on partial unemployment.”

“Nonprofits keep New York City running, and all New Yorkers benefit from these organizations and their presence in our neighborhoods, whether they directly receive their services or not,” said Michelle Jackson, Executive Director, Human Services Council. “The City's chronically late payments to the nonprofits it depends on, which are critically low to begin with, will force more organizations doing great work helping New Yorkers to cut services and close their doors.”

Data about the impact of late payments is just one element of NFF’s comprehensive look at the experience of New York City’s nonprofits. Findings span a range of topics, including:
• Rising demand: Most (80%) reported that demand for their services increased between 2023 and 2024; about half (52%) don’t expect to be able to meet service demand in 2025.
• Community focus: 42% of respondents have a leader with lived experience representative of a community the organization serves.
• Top challenges: More than 80% reported challenges raising funds that cover full costs and achieving long-term financial sustainability.
• Philanthropic support: Many nonprofits reported that foundations have been less restrictive with grants since late 2022. More than one-third (34%) said funders are making more multi-year grants, compared to one-quarter (25%) of national respondents.

The report includes action steps for funders in response to current findings, including recommendations for immediate government payment reforms.

“City residents pay taxes that fund critical services, including those delivered by nonprofits, and deserve good stewardship and accountability,” said Edward Ubiera, Senior Director of Community Engagement at NFF. “This report surfaces many challenges and opportunities, some of them highly complex and entrenched. But paying nonprofits on time is a basic commitment the City can keep to ease the burden on organizations that are so critical to the City's civic infrastructure."

Full results from NFF’s national, NYC, and other surveys are available at: https://nff.org/learn/survey.

About Nonprofit Finance Fund
Nonprofit Finance Fund^® (NFF^®) is a nonprofit lender, consultant, and advocate. For 45 years, we’ve helped organizations access the money and resources they need to realize their communities’ aspirations. Alongside others, we’re working to build community wealth and well-being and put affordable housing, essential services, quality jobs, and excellent education within reach of more people. To learn more, visit https://nff.org/.

Tricia McKenna
Nonprofit Finance Fund
press@nff.org
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