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Leaders Call Upon the New Administration to Partner with the Charitable
Sector
The leaders emphasized their long history of responding to government requests for
assistance to needy citizens, especially during slow economic recovery, and reiterated
their commitment to that mission. However, demand for services is skyrocketing,
while changes in state tax policy, late government payments and burdensome
contracting processes are challenging the fiscal solvency of charities and non-profits.
“We are here today,” said Ronald Soloway, Managing Director of Government and
External Affairs, UJA-Federation of New York, “to ensure that the partnership that the
charitable sector has enjoyed with State government remains strong. Our sector looks
forward to working with Governor-elect Cuomo to provide New Yorkers with the
services they need to live their lives with dignity and to continue the role of these
agencies in contributing to the economic strength of our State.”
“Given our long history in working with state agencies, charities leaders are in a
unique position to offer insight regarding a more efficient and effective business
relationship in support of community services,” said Susan Hager, President of the
United Way of New York State. Despite a 20 year old law, a report from the State
Comptroller concludes that the state has been unable to meet the timeframes in the
law 82% of the time, resulting in financial uncertainty and stress for not for profit
providers. State budgets continue to treat programs operated by the sector with
broad brush “across the board” cuts rather than respecting proven cost saving
strategies, including prevention. It is time for a new approach based on new principles
of collaboration with our sector.”
The leaders went on to elaborate on state policies and trends are affecting the
stability of charitable organizations.
Andrea Smyth, Executive Director for the New York State Coalition for Children’s
Mental Health Services itemized recent tax policies that are troublesome. “The three-
year limit on the amount of charitable donations that high earners can count toward
tax deductions is really hurting the charities and nonprofits that people are relying on
more than ever. And the MTA payroll tax that included the payroll of tax-exempt, non-
profit human service providers in 12 counties has to be revisited,” said Smyth.
The bad economy has added significant stress to these agencies, with its
compounding impact of increased need and demand for social services while
decimating governmental budgets and private donations. Cao O, Executive Director,
Asian American Federation cited the “sacrifices made by nonprofit agencies to fill gaps
in insufficient government payments and cut programs: staff layoffs, frozen salaries,
and the use of cash reserves that had been built up over decades of charitable
outreach, just to keep operating for the year.” He noted that “recent State
Government decisions, like those described here today, have done real damage to the
charitable sector, and that this must be corrected”.
Allison Sesso, Deputy Executive Director, Human Services Council of NYC pointed out
that the charitable sector is also an important economic engine in New York:
“According to the State Comptroller’s Office, there are approximately 24,000 not-for-
profit organizations in New York State, with nearly 31,000 active contracts. These not-
for-profit agencies provide an estimated 1.2 million jobs, or 17 percent of the State’s
workforce.”
In order to ensure the future availability of essential services by the nonprofit sector,
the speakers urged that the new Governor make a commitment to a dialogue with the
charities industry and consider the following specific requests: