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Q&A
Clarification on the $5 billion advance payment initiative for nonprofits
1:13:12
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72 sec
Council Member Julie Won seeks clarification on the $5 billion advance payment initiative for nonprofits, expressing confusion about using a dollar figure instead of a percentage. Michael Sedillo, Executive Director of the Mayor's Office of Nonprofit Services, responds to these concerns.
- The initiative aims to provide more upfront funding to nonprofits upon contract registration or at the start of the fiscal year
- Specific percentages for advances will be communicated to nonprofit providers soon
- The administration pushed for the highest responsible amount possible to support nonprofits
Julie Won
1:13:12
Okay.
1:13:12
I just want to circle back.
1:13:15
I'm a little confused to talk about advances on a dollar figure instead of a percentage.
1:13:19
You're investing in you're not investing in advances, so you're just getting nonprofits the money that's owed to them at a reasonable time.
1:13:28
With the current advanced policy most nonprofit providers get a 25% advance And there are very few who are exceptions.
1:13:35
So to say $5,000,000,000 in advances, it seems a bit arbitrary.
1:13:38
Can you say more about how this decision was made?
1:13:42
And I know that you're saying that the percentage will be announced at a later time.
1:13:46
But the nonprofit provider wants to have more clarity.
Michael Sedillo
1:13:50
Certainly.
1:13:50
Thank you for the question, Chair.
1:13:53
I understand that and I would feel the same way if I were a nonprofit provider.
1:13:59
I think again what nonprofit providers should understand is that we pushed as hard as we possibly could and got as high of a number as we responsibly could and we'll be communicating that out very soon to our non profit providers.
1:14:16
But everybody should understand they're going to get more upfront upon contract registration or if it's a multi year contract at the start of the fiscal year than they have before.