Not-for-Profit Contracts with State Agencies

Memorandum of Support 

Re: A7616 Paulin / S7001 Mayer
Relates to contracts between state agencies and not-for-profit organizations; repeals a provision of the state finance law relating thereto 

The above-referenced bill would make changes to the prompt contracting law to help address the challenges faced by nonprofits in receiving critical state funding. The New York State Catholic Conference applauds this legislation and urges its passage. 

Catholic Charities has a presence throughout New York State and serves more than one million clients annually. For over a century, they have been on the front lines of the most urgent crises facing our State. From homelessness to mental health, food insecurity and disaster recovery, and more recently the huge influx of migrants and refugees, Catholic Charities has partnered with New York to serve the people with their expertise and care. 

Unfortunately, the State’s contract and procurement process is notoriously slow and rife with logistical issues. The problem has only worsened in recent years. While nonprofits are required to begin providing services at the start of the contract, the State does not always pay them within the same timeframe. Nonprofits often take out lines of credit to finance their operations and face economic hardship in these situations. This flawed process harms the countless New Yorkers that rely on Catholic Charities every year by impeding their ability to provide services. 

This legislation would bring a welcome change to the procurement process by clarifying language in existing law and streamlining systems already in place. When these needless financial hardships are removed, Catholic Charities will be better able to continue providing the highest level of service to our most vulnerable sisters and brothers. We urge you to support this bill.