‘A betrayal:’ nonprofit leaders angered by potential of delayed Mamdani admin payments

New York City owes nonprofit organization The Children’s Village $3.7 million – and its leader is worried that the longstanding problem of delayed contracting payments is about to get even worse.

“After almost 10 to 12 years of advocacy and commitments, that’s a betrayal,” said Children’s Village President and CEO Jeremy Kohomban introducing a panel Thursday for NYN Media Nonprofit OpCon. 

The night before hundreds of nonprofit professionals gathered for the convention at Hebrew Union College in Manhattan, NBC New York reported that Mayor Zohran Mamdani’s administration is considering delaying payments to nonprofit organizations due to “cash flow issues,” according to sources inside the administration. 

That’s downstream of an October 2025 law requiring the city to pay social service nonprofits 50% of their annual contract award upfront, at the start of the new fiscal year, up from the 25% they currently receive. Nonprofit organizations that typically serve the city’s most vulnerable populations may be receiving just half of their expected city funding in less than three weeks’ time and are scrambling to find a solution.

Even larger organizations with strong donor support are suffering due to years of missed payments from the city. Many nonprofits have had to relay on taking out lines of credit while waiting for the city to pay for services already rendered. 

Kohomban said his organization spent nearly $860,000 on their credit line last year, most of it directly related to delayed payments from the city. He added that the only agency to pay their contracts on time has been the Administration for Children’s Services. 

The Mamdani administration didn’t return a request for comment. Pekec told NBC New York that all nonprofits “will be fully paid for their rendered services” – but suggested the city was facing issues implementing the new law by July 1.

“We will work with our partners in government and the nonprofit sector to meaningfully implement this new law while continuing to manage the city’s cash flow.” Pekec said.

This delay of payment would be allowed for up to 180 days due to an exception in the new law that allows deferment if that timeline for payment is not practical due to fiscal constraints. Kohomban said the delay would  especially hurt smaller nonprofit organizations with less donor support, who still have to fulfill their obligations to the city. 

“It's an absolute betrayal,” Kohomban said. “I trust the mayor and I took him at his word that he would do right by those of us who fight the toughest battles. We are doing the work of a good government. Everything he stands for is the battle that I fight on behalf of New Yorkers.” 

Nonprofit organizers are extremely displeased with the lack of response or confirmation from City Hall, and there are rumblings of a rally to be held in the coming days.

The initial proposal for advance payments for nonprofit organizations was born during the de Blasio administration. Advocates pushed to receive payment ahead of time after years of debt accruing from the city, and the New York City Council and Mayor Eric Adams’ administration adopted a 25% payment advance in April 2025.. 

The city is not alone in their troubles with paying nonprofits on time. The state legislature just passed a pair of bills to fix the broken payment system and begin a 25% budget advance and a mandated 30-day net payment. 

Gov. Kathy Hochul’s deputy director of Nonprofit Affairs did not respond to a request for comment.