Some states delaying payments to nonprofits

According to Philanthropy News Digest, government agencies in some states are delaying payments promised to nonprofits under existing grants or contracts, a survey conducted by the Alliance for Children and Families and United Neighborhood Centers of America finds.

The survey of nearly 100 nonprofit social service providers from 30 states found that respondents in 19 states reported receiving late payments from state or local governments, while organizations in 11 states reported no such problems.

Organizations that received delayed payments all reported negative impacts on their organizational cash flow, which for some has led to job cuts and reductions in services, while almost all reported relying extensively on lines of credit to make up for cash shortfalls. At the same time, many groups reported that their lines of credit have been reduced or that it has become more expensive to borrow against them.

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