Nonprofits may finally see faster payments in NYC

New York City Mayor Eric Adams and Council Speaker Adrienne Adams will announce a new pilot initiative to expedite the city’s discretionary funding process. Launching this fall, the Discretionary Grant Pilot will replace the city’s traditional contract process with direct grant agreements for approximately 100 organizations. 

 "Non-profits provide essential services to New Yorkers through city contracts and funding, but far too often are paid late for their work and forced to shoulder excessive administrative burdens,” said Speaker Adams in a news release coming out Thursday. “This new Council discretionary grant pilot program, in partnership with Mayor Adams' administration, will remove excessive barriers to get non-profits their funding faster and with less red tape.” 

With the pilot eliminating 13 steps, the new model will ensure eligible nonprofits receive all of their Council-allocated funds in half the time of the current contracting process. In its second year, the pilot will be extended to more organizations. 

Aimed at reducing bureaucratic hurdles and speeding up payments to the city’s nonprofits, the new pilot will ensure that eligible nonprofits receive one-year grant agreements, bypassing the traditional months-long contract registration process. Once agreements are signed and returned, 100% of funds will be disbursed to the nonprofits, allowing organizations to serve their communities without delayed payments.

Coinciding with New York City Nonprofit Week,” the new initiative follows after the city announced a record number 812 contracts registered ahead of fiscal year 2026 – nearly doubling last year’s figures. As it stands, 88% of the human services contracts planned for the next fiscal year are now registered – the highest percentage of registered contracts in the last five years. 

“These organizations are a lifeline for so many families across the five boroughs, and we must have their backs to deliver day in and day out for New Yorkers,” said Mayor Eric Adams in a statement. “When New Yorkers need help, nonprofits are always there with the resources, expertise, and people that get the job done.” 

Nonprofits who were awarded a total of $25,000 or less in City Council discretionary dollars in fiscal year 2026, and were funded by the Department of Youth Community Development, Aging, Veterans Services or the Department of Small Business Services can qualify. Participating organizations will be determined by the Council, Mayor’s office of Contract Services and will be notified of grant agreements following October. With 30 days to return signed agreements, organizations can anticipate receiving funding by January 2026. 

The Adams’ administration’s latest support comes as the city's social safety nets grapple with the effects of the latest budget reconciliation bill. With a focus on finally expediting payments to nonprofits, Michael Sedillo, executive director of the Mayor’s Office of Nonprofit Services, has doubled down on the agency’s shift to a customer-service oriented model, in addition to efforts to unlock $6 billion in backlogged funds. 

“None of this progress would have been possible without the unrelenting public servants at the Mayor’s Office of Contract Services, whose leadership in this year’s Timeliness Initiative united this administration in getting resources where they belong: serving New Yorkers,” said Sedillo in a statement.     

This initiative builds on the administration’s pledge to $5 billion in advance payments to city-contracted nonprofits and previous pledges of $741 million to 80,000 human services workers in 2024. Launched by the Mayor’s Office of Nonprofit Services, the “Timely Registration Initiative,” aims to streamline contracting processes, encourage transparency, and support providers through contracting. 

Driven by system upgrades like PASSPort, the city’s digital procurement platform, along with the relaunch of ContractStat – these latest systems aim to enhance technical assistance, accountability and service delivery for nonprofits.  

“Nonprofits are both partners in service delivery and the heart of our city’s safety net. Every day, they stand alongside vulnerable New Yorkers,” said Deputy Mayor for Strategic Initiatives Ana J. Almanzar in a statement. “New York City cannot thrive without its nonprofits, and we will continue to stand shoulder to shoulder with them to build a stronger, fairer city for all.”