Every morning, I wake up thinking about one thing: how to get New York City’s nonprofits paid. As leader of the Mayor’s Office of Nonprofit Services (MONS), my mission is to cut through bureaucracy that delays payments on human services contracts and ensure organizations providing essential services are paid on time. Our city’s nonprofit sector is not just a vendor — it’s a partner. But for too long, they’ve faced late payments and complex contracting. Mayor Adams appointed me to change that.
Historically, nonprofit providers with human services contracts received up to 25% of their contract value as an advance. But last month, our administration made a bold move. For the first time in city history, most nonprofit providers will receive record-high advance payments—an estimated $5 billion in Fiscal Year 2026.
Some City Council members proposed advancing up to 80%, but much of our funding comes from federal and state sources that pay out gradually. Advancing money we don’t yet have would be irresponsible. Our plan strikes the right balance—making sure providers are paid so they can continue delivering services, which benefits them and the city.
We know this past year has been incredibly difficult for nonprofits. While this advance doesn’t solve every challenge, it helps us meet the moment. Under the new plan, most human service providers will receive up to half of their contract amount in advance at the start of FY 2026. In some cases, programs will receive a 30% advance up front, with another 25% advance in January. It’s a bold directive that we hope brings relief and stability.
From the start, we’ve worked to fix the city’s contracting process. In 2022, Mayor Adams launched “Clear the Backlog,” unlocking $6 billion for nonprofits. I partnered with the Mayor’s Office of Contract Services and city agencies to release funds that had been delayed for years. That effort taught me three lessons:
Sunlight helps – Weekly dashboards sent to City Hall and agencies created transparency and accountability, pushing faster action.
Alignment is key – Project managers with decision-making authority helped cut across silos and maintain momentum.
Celebrate staff – Bureaucracy is about people. Recognizing city employees who made progress fostered a culture of urgency.
Now, five months into leading MONS, these lessons drive our strategy. We focus on six pillars: culture change, performance management, alignment, communication, capacity building, and reform. Everything we do supports our nonprofit partners and the New Yorkers they serve.
Recently, we convened the city’s first “ContractStat” meeting, bringing together City Hall leadership and our new Chief Nonprofit Officers to increase accountability. This internal performance system tracks key contract cycle times and identifies bottlenecks. Codified in Executive Order 47, signed by Mayor Adams in January 2025, it ensures agencies stay focused. Chief Nonprofit Officers serve as project managers to keep progress moving.
But we’re not just looking at data. We’re also listening. Too many nonprofits feel like adversaries rather than partners. That’s not productive. City agencies must offer customer service while safeguarding public funds. That’s why we launched a Provider Sentiment Survey, asking nonprofits how they’re treated. Their feedback will shape ContractStat, giving us both quantitative and qualitative insights to improve the system.
We’re also recognizing the behind-the-scenes work that too often goes unnoticed. The Excellence in Human Service Delivery Awards (EHSDAs) will honor nonprofit providers and city staff who demonstrate innovation, operational excellence, and service.
We know this is just the beginning. The city’s contracting system has been broken for years, and change takes time. But by building systems for accountability and culture change, we’re laying the groundwork for a more functional, responsive system. Nonprofits shouldn’t have to worry about whether their contracts will be registered or their invoices paid. They should be able to focus on their mission— delivering essential services to New Yorkers. That’s what we will continue fighting for every day.
Michael Sedillo is the executive director of the Mayor’s Office of Nonprofit Services.
