City Hall Delivers Major Breakthroughs for Nonprofits — Faster Funding, Stronger Partnerships, and Historic Reforms

New York City — October 27, 2025

In a major stride toward strengthening New York City’s nonprofit sector, Deputy Mayor for Strategic Initiatives Ana J. Almanzar and Executive Director Michael Sedillo of the Mayor’s Office of Nonprofit Services (MONS) convened a powerful media roundtable to announce groundbreaking reforms designed to streamline funding, accelerate payments, and enhance collaboration between City Hall and nonprofit providers.

The event, held in partnership with the Mayor’s Office of Ethnic and Community Media, underscored the Adams Administration’s continued commitment to improving equity, efficiency, and accountability in how the City supports organizations serving New Yorkers in need.

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Key Policy Announcements

Discretionary Grant Pilot: Reducing Bureaucracy, Accelerating Support

Launched in partnership with the City Council and the Mayor’s Office of Contract Services, the Discretionary Grant Pilot transforms the way small discretionary contracts are processed.

Under this initiative, contracts under $25,000 are now handled as grants — removing 13 administrative steps and allowing nonprofits to receive 100% of their funding within weeks. This change delivers long-awaited relief to smaller community-based organizations often impacted by delays in the contracting process.

Advance Payments: Doubling Support for FY2026

For Fiscal Year 2026, the Administration has doubled the standard advance payment policy, allowing nonprofits to receive up to 50% of their contract budgets upfront. This change, strongly championed by Sedillo and his team, ensures that organizations can sustain operations and continue delivering essential services without interruption.

Timeliness Initiative: A Record Year for On-Time Contracts

Led by the Mayor’s Office of Contract Services, the Timeliness Initiative achieved a historic milestone this year: 88% of City contracts were submitted to the Comptroller on time — the highest rate in five years.

This success reflects a renewed culture of accountability, coordination, and responsiveness across city agencies and demonstrates the Administration’s dedication to improving the contracting experience for nonprofit partners.

Cost-of-Living Adjustment (COLA): Investing in the Human Services Workforce

The Adams Administration has committed $741 million over three fiscal years (2025–2027) to fund a 3% cost-of-living adjustment (COLA) for 80,000 human service workers. This investment recognizes and supports the essential workforce that powers the nonprofit sector and delivers critical services citywide.

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Celebrating Excellence and Service

On August 19, 2025, the City launched the inaugural Excellence in Human Service Delivery Awards (EHSDAs) at Gracie Mansion, honoring exceptional nonprofits and public servants who exemplify excellence in service and collaboration.

In conjunction with the awards, the Administration also declared August 19–22 as NYC Nonprofit Week, celebrating the vital work of nonprofit providers across all five boroughs. During the week, City leaders visited service organizations, presented proclamations, and publicly recognized their contributions to the city’s social and economic well-being.

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Strengthening Collaboration and Partnership

To ensure sustained dialogue and responsiveness, the Mayor’s Office of Nonprofit Services continues to lead key partnership initiatives:

• Nonprofit Advisory Council: A coalition of more than 30 nonprofit executives who serve as trusted advisors, ensuring that City policies are informed by real-world experience.

• Chief Nonprofit Officers (CNOs): Established under Executive Order 47, 18 CNOs are now embedded within city agencies, enhancing communication, coordinating problem-solving, and ensuring issues are addressed in real time.

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Leadership Voices

Deputy Mayor Ana Almanzar commended the ongoing progress and partnership between the City and nonprofit leaders:

“These reforms are about creating a government that truly works for those who serve our communities,” said Deputy Mayor Almanzar. “Nonprofits are the backbone of our city’s compassion, and under Michael Sedillo’s leadership, we are building a system that is faster, fairer, and more collaborative.”

Executive Director Michael Sedillo echoed that sentiment:

“Our nonprofits are on the front lines of every challenge New Yorkers face,” Sedillo said. “They deserve a city that meets their urgency with action. When nonprofits thrive, New Yorkers thrive.”

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A Message to New York City’s Nonprofits

Nonprofit organizations facing contracting or payment challenges are encouraged to contact the Mayor’s Office of Nonprofit Services directly at askmons@mons.nyc.gov. The office remains dedicated to supporting providers, improving processes, and ensuring that every nonprofit has the tools needed to succeed.

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Closing Reflection

From payment reform to workforce investment, the Adams Administration has reaffirmed its commitment to the nonprofit community.

Through collaboration, accountability, and innovation, Michael Sedillo and the Mayor’s Office of Nonprofit Services are helping to build a more efficient, equitable, and compassionate New York City.