Pennsylvania’s uncertain budgets are causing nonprofit organizations to suffer financially. 54 days without a resolution has caused employees to quit and companies to suffer from a lack of reimbursement. During economic hardship, Nonprofit Liability is increased tremendously for those organizations that require state assistance.

One such nonprofit that has been adversely affected is Employment Technologies, run by Chris Carabello since 1986. This entity is contracted by federal and state governments to assist disabled individuals find jobs.

However, lawmakers in Harrisburg are combating the budget, causing payments to be temporarily ceased. What’s more, federal payments and grants are also put on hold while the budget is sorted. However, Bucks and Montgomery county government officials are seeking to provide temporary relief for these local nonprofit vendors per their request.

According to Bucks County Courier Times, Montgomery County Chief Financial Officer Uri Z. Monson declared the county would spend $14 million to pay vendors. Although there is the possibility of not seeing a full return on investment, Bucks County chief operating officer Brian Hessenthaler stated “I don’t think it’s a risk. We’re paying out that money in the hopes of getting it back. We’re pretty confident that we will be able to fund these organizations.”

As any invoice that was received after June 30^th has not been processed, the money for these organizations is critical to sustaining business and employees. In the meantime, nonprofits have had to open lines of credit to stay in business. While larger organizations have assets that enable them to leverage loans, smaller ones could struggle with the shift.

At Charity First, we understand that there are plenty of considerations and expenses to be made when operating a nonprofit, proper insurance included. For more industry news and trends, as well as receiving information about properly protecting your clients’ organizations, contact us today at (800) 352-2761.