With the collapse last year of the large and mostly taxpayer-funded New York City charity FEGS, other area nonprofits are growing wary of the financial squeeze that can come with relying primarily on government human-services contracts, The Wall Street Journal reports.
A study to be released Wednesday by nonprofit membership trade group the Human Services Council says such contracts often do not provide sufficient funds to cover the costs of the programs for which they are earmarked. The council calls for changes to government reimbursement models and warns charities to avoid city and state contracts that do not fully pay program costs, writes Politico New York. The financial calculus has led groups that were asked to take on former FEGS programs to closely consider how much of the work they can absorb, the Journal writes.
We're sorry. Something went wrong.
We are unable to fully display the content of this page.
The most likely cause of this is a content blocker on your computer or network.
Please allow access to our site, and then refresh this page. You may then be asked to log in, create an account if you don't already have one, or subscribe.
If you continue to experience issues, please contact us at 202-466-1032 or help@chronicle.com