Driving accountability and cultural change so nonprofits get paid

Every morning I wake up thinking about one thing: how to get New York City nonprofits paid. As the leader of the Mayor’s Office of Nonprofit Services (MONS), my mission is to reduce the bureaucratic steps that delay payments for human services contracts and ensure that organizations providing essential services receive their payments on time. Our city’s nonprofit sector is not just a provider, it’s a partner. But for too long they have faced late payments and contract complexity. Mayor Adams appointed me to change this situation.

Historically, nonprofit providers with contracts to provide human services received up to 25% of the value of their contract as an advance payment. But in April, our administration took a bold step. For the first time in the city’s history, most nonprofit providers will receive unprecedented advances: about $5 billion in fiscal year 2026.

Some City Council members proposed an advance of up to 80%, but much of our funding comes from federal and state sources that make payments gradually. Paying money in advance that we do not yet have would be irresponsible. Our plan strikes the right balance, ensuring that providers receive their payments so they can continue providing services, which benefits both them and the city.

We know that this past year has been incredibly difficult for nonprofit organizations. Although this advance does not solve all the challenges, it helps us face the moment. Under the new plan, most human services providers will receive up to half the amount of their contracts up front at the start of fiscal year 2026. In some cases, programs will receive a 30% advance up front, with another 25% advance in January. It is a bold directive that we hope will provide relief and stability.

From the beginning, we have worked to fix the city’s hiring process. In 2022, Mayor Adams launched the “Clear the Backlog” campaign, unlocking $6 billion for nonprofits. I worked with the Mayor’s Office of Contractual Services and other city agencies to release funds that had been blocked for years.

That effort taught me three lessons:

• Exposure to light helps – Weekly reports sent to the Mayor’s Office and agencies generated transparency and accountability, driving faster actions.
• Collaboration is key – Project managers with decision-making authority helped overcome obstacles and maintain momentum.
• Celebrate staff – The bureaucracy is made up of people. Recognizing city employees who made progress fostered a culture of urgency.

Now, six months into leading MONS, these lessons drive our strategy. We focus on six pillars: cultural change, performance management, collaboration, communication, capacity development and reform. Everything we do supports our nonprofit partners and the New Yorkers they serve.

Recently, we convened the city’s first “ContractStat” meeting, which included leaders from the Mayor’s Office and our new directors of non-profit organizations in order to increase accountability. This internal performance system tracks cycle times of key contracts and identifies bottlenecks. Coded in the Executive Order 47signed by Mayor Adams in January 2025, the system ensures agencies stay focused. Nonprofit directors serve as project managers to keep things moving forward.

But we’re not just seeing data, we’re also listening. Many nonprofits feel like adversaries rather than partners, which is not productive. Municipal agencies must provide customer service while safeguarding public funds. That’s why we launched a Survey on how suppliers feel in which we ask them how they are treated. Your feedback will shape ContractStat, giving us both quantitative and qualitative insights to improve the system.

We also recognize the work behind the scenes that often goes unnoticed. The Excellence in Human Service Delivery Awards (EHSDAs) will honor nonprofit providers and municipal staff who demonstrate innovation, operational excellence and service.

We know this is just the beginning. The city’s contract system has been failing for several years and change takes time. But by developing systems for accountability and cultural change, we are laying the foundation for a more functional and effective system. Nonprofits should not have to worry about whether their contracts will be recorded or their bills will be paid. They should be able to focus on their mission of providing essential services to New Yorkers. That is why we will continue to fight every day.

Michael Sedillo is the CEO of MONS.