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Contracting Problems with State and Local Governments

From our friends at the National Council of Nonprofits .

At a time when human services organizations are still struggling with the economy, some nonprofits are reporting another worrisome trend: state and local governments are not paying the organizations what they promised, when they promised, or with enough funding to pay the full cost of services. According to an ongoing analysis by the National Council of Nonprofits, governments are finding new ways to shortchange nonprofits and exploit the contracting relationship. See the five worst government contracting abuses.

Has your agency experienced any of the following practices or abuses by state or local governments?

  • delayed payments
  • contract terms amended in mid-contract
  • imposition of fees or deductions from what the government would otherwise owe
  • failure/refusal to pay indirect costs
  • failure to pay the full cost of providing services under the contracts

If so, please share your story with the National Council of Nonprofits, and any documentation you have, so they can investigate the seriousness of the government contracting challenges in your state.

Posted in Nonprofit Issues.