Nonprofits urge faster payments, clearer indirect-rate rules in H.233 testimony

Jesse Bridges, CEO of United Way of Northwest Vermont, told a legislative committee reviewing H.233 that delays in contracting and payments for state-funded grants are forcing nonprofit organizations to carry substantial cash-flow risk.

Bridges said H.233 — described in the hearing as a bill addressing requirements for state-funded grants — offers an opportunity to change “how we fund” nonprofit work, not only “how much we fund,” by reducing reimbursement delays, clarifying indirect-cost rules and creating pathways for advanced or bridge funding.

Bridges framed the issue as a practical one for service delivery: United Way of Northwest Vermont subgrants more than 70% of a prevention grant tied to retail cannabis revenue and in the first year advanced payments to local partners. He said the organization waited months to be…