Nonprofits across New York serve as essential lifelines for the underserved, vulnerable, and voiceless members of society.
They provide crucial access to healthcare, food, clothing, and educational opportunities, while also supporting mental health services.
With over one in six private-sector jobs in the state tied to these organizations, they are a vital part of the New York economy.
However, recent government policies from Albany and Washington have intensified difficulties for nonprofits.
A report released earlier this year by the New York State Comptroller highlighted a concerning decline in the nonprofit sector since 2017.
The report disclosed that more than 170 nonprofit organizations have ceased operations between 2017 and 2022, coinciding with late contract processing and uncertain funding from the state, which have prompted significant job losses in the sector.
The situation is further exacerbated by substantial spending cuts instituted by President Donald Trump’s administration, which have already resulted in the loss of millions of dollars in federal funding for New York’s nonprofits.
This loss of financial support has critically impacted services such as Meals on Wheels, organizations assisting the homeless, and groups providing essential legal services for disadvantaged communities.
In addition to the cuts affecting individual agencies, a broader impact is being felt across health and human service programs in the state.
Governor Kathy Hochul has projected that New York could potentially lose nearly $400 million in financial resources designated for mental health and addiction services, as well as health departments statewide.
New York City faces a particularly dire situation, with federal funding representing over 6% of its budget, further underscoring the heightened importance of nonprofits during these tumultuous times.
In light of these pressing challenges, it is imperative for lawmakers in Albany to prioritize support for the nonprofit sector.
This includes finding ways to fill financial gaps left by federal funding cuts and refraining from introducing policies that could inadvertently burden these organizations.
Recent regulatory proposals, such as the Health Information Privacy Act and the Child Data Protection Act, have raised concerns among nonprofit leaders.
While there is universal agreement on the need to protect sensitive healthcare information and children’s data, the broad definitions in these proposals lack exemptions for nonprofits.
As a result, organizations dealing with health data or providing services to minors may be forced to allocate already limited resources towards legal compliance, audits, and staffing to meet these new requirements.
These extensive demands could drain resources from their core missions, already under siege from reductions in federal support and inefficiencies in state processes.
Additionally, a lack of transparency surrounding rulemaking processes by the attorney general and other agencies has left nonprofits unsure of how to navigate impending changes, stripping them of valuable time needed to adapt appropriately.
In these uncertain times, it is crucial to avoid encumbering nonprofits with additional bureaucratic hurdles.
Instead, the focus should be on promoting and supporting their important missions.
Lawmakers must think critically before passing new legislation that might further inhibit these organizations’ ability to serve the communities that rely on them the most.
Rev. Carmen Hernandez, a Bronx-based community advocate and activist, emphasizes the importance of safeguarding the sector while navigating the complexities faced by New York nonprofits.
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