Kentucky Nonprofit Network CEO Danielle Clore says late agreement, late payments, and other issues are resulting in nonprofits that can't meet payroll — and the long-running problem is becoming unsustainable.
"And it's resulting in a workforce shortage that means waiting lists for programs and services. It means some programs are closed," she tells WUKY.
And that's led to the drafting of legislation. It would implement new requirements regarding prompt payment and full reimbursement plus interest for delayed payments, among other provisions.
"So this reform is critical, it's long overdue, it's been exacerbated by the pandemic, and so with that, we're really eager to take some critical first steps to get folks paid on time," she said.
The network says nonprofits can no longer afford to use private donations to "float late government payments."
Advocates expect to file the bill in the coming days.
