Daniel Franklin highlights impact of delayed grant payments on nonprofits at Vermont meeting

The House Government Operations meeting held on March 27, 2025, addressed critical issues surrounding late payments to nonprofit organizations in Vermont, particularly those involved in mental health and addiction recovery services. The meeting began with a discussion on the prevalence of late payments, with participants noting that many organizations experience delays, especially around the July 1 funding cycle. It was highlighted that the extent of these delays varies significantly between agencies and grants, with some organizations reporting that nearly half of their grants are affected.

Daniel Franklin, the executive director of the Vermont Association for Mental Health and Addiction Recovery, emphasized the challenges faced by nonprofits due to these financial uncertainties. He expressed gratitude for the difficult decisions made by the committee members, acknowledging the pressing needs of the community amid federal-level challenges. Franklin shared his extensive experience in the nonprofit sector, noting that while his current organization does not receive state grants, previous roles had involved substantial state funding.

Franklin articulated the severe consequences of delayed payments, which can jeopardize the survival of organizations, hinder payroll capabilities, and stifle growth and planning for the future. He underscored the importance of financial security for nonprofits, especially in the wake of recent crises such as the COVID-19 pandemic and devastating floods, which have further strained the health and human services system.

The meeting concluded with a call for greater understanding and action to address the financial challenges faced by nonprofits, highlighting the need for timely funding to ensure their sustainability and ability to serve the community effectively.