51. Dermot SmythQueens Political Action Coordinator, United Federation of Teachers Dermot Smyth-Dermot Smyth.JPG Alt Text: Dermot SmythTitle Text: Dermot
City Nonprofits Face Financial Catastrophe Due to Pandemic’s Demands
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New York City’s human service nonprofits stepped in to fill a myriad of gaps during the pandemic, from feeding the hungry to getting cash assistance to undocumented immigrants who didn’t qualify for federal stimulus payments. But a new survey by the Center for an Urban Future finds many of these same organizations are now “on the precipice of financial catastrophe” because they spent so much additional money.
The think tank surveyed two dozen of these nonprofits and found most are now experiencing a yearly budget deficit between 15 and 50%. These include the YMCA of Greater New York, which lost more than $100 million in revenue (half of its operating budget), and Citymeals on Wheels, which spent $3.5 million more than it budgeted last year because it delivered 26% more meals than during the previous year, due to COVID-19.