About 70 percent of D.C.’s nonprofits reported late payments from city agencies
The Urban Institute examined more than a dozen aspects of the contracting process for nonprofit groups that provide human services in all 50 states and D.C. and found that the District consistently ranked among the most problematic in key categories. Maryland and Virginia fared far better than the District, ranking in the top half in most categories.
At least 92 percent of human services nonprofits reported to the Urban Institute that they found the District’s grant application process complex and lengthy, the study said. That’s the worst percentage in the country. Nationwide, 76 percent of nonprofits found the process too long and complicated.
About 70 percent of the District’s nonprofits reported that they had received late payments from city agencies, ranking the District as the fourth-worst in the country. About 53 percent reported problems with late payments nationwide.
The study, which is one of many the Urban Institute conducts by raking through data on community development and other issues, comes at a time when the nonprofits that provide shelter for the poor, health services and general outreach are facing a decline in funding.
Nonprofits in the District, Virginia and Maryland have been hit especially hard by the recession, the study found.
About 66 percent of the groups in Virginia reported a decline in revenue from government agencies, placing the commonwealth among the top five states in reported revenue drops. In the District, 64 percent of the nonprofits said they’d seen a drop, and 52 percent in Maryland.
As a result, 32 percent of the D.C.’s nonprofits have cut services. In Virginia, 25 percent are providing fewer programs and in Maryland 15 percent.
The tough economy makes it necessary to find a quick solution to the District’s contracting process, Ward 3 D.C. Councilwoman Mary Cheh said.
“It is urgent that we fix these problems because, especially in these hard times, we need talent, resources and community connections for all of our nonprofits,” Cheh said.
