State Comptroller Reports Shrinking Workforce in Nonprofit Sector

Comptroller Reports Shrinking
Jan 22, 2025 Reading time : 2 min

The landscape of nonprofit agencies in New York witnessed a decline contrasting sharply with the growth of such organizations across the nation. This trembling trend is mentioned in a report that was released by the state comptroller’s office on Wednesday. 

According to the research, the non-profit sector in New York is right now fighting the fallout from the pandemic-related personnel shortages. About 20% of nonprofit jobs in New York were lost during the pandemic, the only 7.45 of those jobs that have been recovered by 2022. 

New York Comptroller Thomas DiNapoli

The comptroller hinted towards factors such as delayed contracts and payments from state agencies that use these nonprofits’ services as major contributors to this slow recovery. 

DiNapoli stated, “Nonprofits are vital to our state and local economies, woven into the very fabric of the communities they support, yet their numbers are dwindling. Many of these organizations depend on government funding to sustain their services, and the delays in contracts and payments have exacerbated their struggles.”

Although New York has one of the greatest numbers of non-profit organizations and workers in the nation, the numbers decreased between 2017 to 2022. During this period, the state lost 173 nonprofits and experienced a 4.1% drop in employment within the sector has it has been noted in the report. 

Although the nonprofit sector faced similar job losses nationwide, New York has been the slowest one to bounce back. DiNapoli has voiced his concerns about the state agencies’ sluggish nonprofit contract renewal in a January 2021 Newsday editorial piece. 

These organizations are in charge of offering the necessary services including homeless shelters, mental health care, and assistance in disaster recovery.

He underlines that even if the state funds were delayed, many continued to deliver these critical services. The comptroller’s office reports that more than half of the state’s nonprofit contracts were signed in 2023. This further acted as an obstruction in the flow of funding to reach these important organizations.

Vibha Anand
Posted by
Vibha Anand

Business Journalist

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