New York – December 16, 2025 — The Mayor’s Office of Nonprofit Services (MONS) today announced major milestones in strengthening support for nonprofit organizations, advancing bold payment reforms, and ensuring providers are paid on time to continue delivering critical services to vulnerable New Yorkers.

At the center of these reforms, MONS Executive Director Michael Sedillo highlighted transformative progress in how New York City partners with nonprofit providers, including a dramatic reduction in contract backlogs, expanded advance payments, and structural reforms to long-standing contracting challenges.

Since the start of the administration, the backlog of unregistered and retroactive contracts has been reduced from $11.8 billion to $2.3 billion, accelerating payments and restoring financial stability for nonprofit organizations. During the current fiscal year, the City also doubled advance payments from 25% to 50% for many nonprofits—an unprecedented investment designed to ensure continuity of services during challenging times.

“Today’s milestones reflect the progress we’ve made in transforming how the city partners with our nonprofits partners,” said Michael Sedillo, Executive Director of the Mayor’s Office of Nonprofit Services.

“By reducing the contract backlog, doubling advance payments, and launching bold reforms, we are ensuring providers can focus on what matters most—delivering critical services to New Yorkers. This work is only possible because of the dedication of our public servants across city agencies, who are advancing excellence in government operations and service delivery—and our nonprofit partners who share our commitment to building a stronger, more equitable city.”

City officials emphasized that these reforms are the result of close coordination between MONS, City leadership, and municipal agencies, marking a significant shift in contracting efficiency, accountability, and provider support.

Deputy Mayor for Strategic Initiatives Ana J. Almanzar underscored the administration’s commitment to addressing long-standing nonprofit challenges and building stronger partnerships across the sector.

“From day one this administration has worked to address the challenges our nonprofit partners face. I am proud of our progress - from the administration’s COLA investment, 50% advance payments, Executive Order 47, which established Chief Nonprofit Officers – we have built a strong partnership with New York City’s nonprofit sector,” said Almanzar.

“I am thankful to all of our City agencies, our chief non-profit officers and staff who work tirelessly to make sure our nonprofit partners continue to help us build a more resilient New York.”

Among the milestones highlighted by MONS:

• Reduction of the City’s nonprofit contract backlog from over $11 billion to under $3 billion

• Conversion of discretionary contracts into grants to streamline payments

• The highest on-time human services contract registration rate in five years

• Expanded staffing capacity to support nonprofit contracting and payment timelines

Officials stated that these reforms represent a long-term transformation in how New York City supports nonprofit service providers, reinforcing their essential role in delivering services across all communities.