Sheltering Arms, a 200-year-old New York City nonprofit that serves more than 17,000 kids and families, is shutting down after years of funding cuts and millions of dollars in late contract payments.
Make your contribution now and help Gothamist thrive in 2023.A 200-year-old New York City nonprofit serving more than 17,000 kids and families is shutting down after years of funding cuts and millions of dollars in late contract payments, its CEO told Gothamist on Monday.
Backlogged contract payments have long pained nonprofits and is among the issues Mayor Eric Adams pledged to tackle early in his tenure. Adams and City Comptroller Brad Lander joined forces last year to create a“We pay our firefighters, teachers, and health care professionals on time — and other contracted essential workers should be no different,” Lander said in a statement Tuesday.
The shutdown will take effect later this spring, an organization spokesperson said. The organization will turn its programs over to other nonprofits, including Rising Ground, which has pledged to offer jobs to existing Sheltering Arms staff. The “residential and drop-in network will not lose capacity, and any young person who needs services will continue to have access to them,” he said.
The Department of Education agreed to reimburse only 75% of the organization’s spending last year, leaving Sheltering Arms millions behind in cash that it needed to make rent, cover insurance and pay staff, she said. The DOE did not immediately respond to a request for comment.by the city’s Human Services Recovery Task Force found that more than 1,800 nonprofits were in danger of closing, with revenues down an average of $9.1 million and late payments averaging around $8 million.
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