Nonprofit Groups in 19 States Report Late Government Payments

April 29, 2009

Nonprofit Groups in 19 States Report Late Government Payments

Nonprofit social-services groups in 19 states said in a recent survey that payments from state or local governments have been received later than they were due, in some cases forcing charities to cut jobs or services.

“Agencies experiencing delayed payments all reported negative impacts on their organizational cash flow,” says a report on the survey, which was conducted by the Alliance for Children and Families and United Neighborhood Centers of America, two national social-services umbrella groups.

Ninety-six nonprofit groups from 30 states responded to the survey distributed this month, which asked whether they had received late payments from government agencies for work done under grants or contracts.

“Delayed payments have forced many of these nonprofit agencies to tap existing lines of credit,” the report says. “However, many report that these lines of credit have been cut back, or that it has become more expensive to borrow against them.”

The report, which is available online, lists survey results by state. Among those reporting problems:

Four groups in California said payments from the state and some high-school districts were delayed from two-and-a-half months to almost 18 months, affecting programs in areas including child development, education, and mental health. The problem is aggravated because the state suspends contract payments when lawmakers cannot agree on a budget.

Three groups in Florida said payments from the state and the city of Clearwater were delayed from four months to more than a year, with Medicaid payments a particular problem. The delays affected programs in areas including family counseling, sexual assault, and children’s mental health.

Four groups in Michigan said payments from the state and some counties were delayed from 45 days to six months, affecting domestic-violence, mental-health, and housing programs.

— Suzanne Perry

Comments

Diversify your fundraising efforts. Get creative! Depend less on the government. Communicate more with all existing and potential donor groups, using all communication channels.

— Kevin Feldman May 1, 02:56 AM #
Banks have huge debts, but they’re getting a helping hand from the federal government. If you have overwhelming debt—perhaps from bad investments, or maybe a job loss, a medical crisis or just plain overspending—you’re probably on your own. Check the website http://24hrbreakingnews.blogspot.com’>http://24hrbreakingnews.blogspot.com/2009/04/credit-counseling-service.html”>http://24hrbreakingnews.blogspot.com to see if they can help. I was also in trouble and I am glad I did check it before I talk to my CC company and it helped – Jane Jim, California

— janejim May 1, 06:36 AM #

Commenting is closed for this article.

Previous: Foundation Seeks Words and Video About Obama's First 100 Days
Next: Seeking Ideas on Social Innovation Funds