New York City’s Nonprofit Resiliency Committee Tackles Sector Challenges
Change Capital Fund is honored to be among the 70 plus organizations participating in the New York City Nonprofit Resiliency Committee being convened by Deputy Mayors Buery and Palacio. We applaud the administration for directly addressing the challenges of this vitally important sector.
CCF is funding our grantees to better integrate their programs and to use data to drive improvements, but we have found that the typical funding model for place-based services organizations often works against these goals. Many government contracts fund services for independent target populations and non-profits typically do not feel funds are sufficient to support the total cost of providing comprehensive services to community members. As a result:
We are heartened that the City, in partnership with the nonprofit sector, is addressing administrative processes, program design, and organizational infrastructure through the Nonprofit Resiliency Committee. Changes in these areas should free up staff time to focus on providing high quality services.
Improving the funding models for human services contracts remains a top priority for Change Capital Fund. Our grantees, like nonprofits across the city, are financially stretched. When philanthropic dollars must be used to cover basic operating costs, grantees are unable to take risks on new ideas. This works against the entrepreneurial nature needed to solve some of our toughest problems – limited economic mobility, low high school graduation rates, recidivism to criminal justice systems, homelessness and displacement.
To address this dilemma, Philanthropy NY has adopted policy positions in favor of reimbursing nonprofits consistent with federal cost principles or a minimum rate of 10 percent of total direct costs and to comply with federal Office of Management and Budget rules (Uniform Guidance), to cover nonprofits indirect costs (often referred to as overhead or administrative expenses) in their contracts. CCF is pleased that the Nonprofit Resiliency Committee is examining the indirect rate.
“The Nonprofit Resiliency Committee is taking up essential issues – contracting procedures, service and program design, and organizational infrastructure issues such as indirect cost rates. It is encouraging that City leaders understand why nonprofits’ ‘real costs’ should be centered in the Committee’s deliberations and we look forward to seeing the recommendations of the NRC.”said Mike Pratt, President, Scherman Foundation, co-chair of the Philanthropy NY Committee and CCF donor.
We look forward to continuing to work with our allies at NYC Center for Economic Opportunity, the Mayor’s Office of Contract Services, and the Nonprofit Resiliency Committee, and with our partners at the Department for Youth and Community Development and across the city to promote the sustainability and efficacy of place-based nonprofit organizations.
As part of Enterprise New York’s work to preserve public housing, Enterprise Rose Architectural Fellow Jae Shin worked across departments and with external partners to create a set of design guidelines for the rehabilitation of New York City Housing Authority (NYCHA) buildings. The guidelines seek to create safe, clean and connected communities and bring best practices in sustainable and high quality design, including Enterprise’s Green Communities Criteria, to many of New York’s most vulnerable residents.
Last month, we wrote about the retirement of one of CCF’s founders, Gary Hattem. You can read another nice tribute to Gary here.