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How Bronx nonprofits bridge funding gaps when government payments are late
Summary
UNH and Bronx House leaders described financial strategies used when city or state funding is delayed: lines of credit, investment accounts, UJA bridge loans and seeking other plug funds — options they said are costly and limited.
Speakers described multiple strategies nonprofits use to stay operational when government reimbursements are delayed. Susan Stamler said the UNH network has a combined budget of about $1,700,000,000 and that roughly 80% of that amount comes from government funding, making payment timing critical.
"So of the $1,700,000,000, about 80% of that is government money," Stamler said. She and Sinclair described the practical steps organizations take when payments don't arrive on schedule: drawing on lines of credit or investment accounts, pursuing bridge loans from partners such as UJA, and seeking short-term plug funding — all of which can incur interest costs and strain organizational reserves.
Sinclair said Bronx House has used lines of credit and UJA-provided bridge loans to cover gaps while awaiting reimbursement. Speakers emphasized that although providers typically do not shut core services, persistent delays erode financial stability and constrain program expansion.
