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Mayor Adams Appoints New Executive Director to Resolve Nonprofit Payment Delays

Mayor Eric Adams has taken a decisive step to address the long-standing issue of delayed payments to nonprofit organizations across New York City. The mayor has appointed Michael Sedillo as the new executive director of the Mayor’s Office of Nonprofit Services (MONS), replacing Johnny Celestin. This leadership change is part of a broader strategy to streamline payment processes and enhance support for nonprofit service providers.

New Leadership, Renewed Focus

Michael Sedillo brings a wealth of experience in city governance, previously serving as a senior advisor in the office of the first deputy mayor and as a change management analyst at the Mayor’s Office of Contract Services. Sedillo is committed to fostering a culture of customer service, performance management, and strengthened partnerships between the city and nonprofit organizations.

“I grew up in Texas, where social services were undervalued. Living in New York City, I see the immense importance of nonprofits in our community. My priority is ensuring they receive the support they need to thrive,” Sedillo shared in an exclusive interview.

Mayor Adams

Initiatives to Expedite Payments

Mayor Adams also unveiled a series of initiatives aimed at reducing bureaucratic hurdles and ensuring nonprofits receive timely payments. Among these efforts:

  • Payment Backlog Initiative: Launched in October 2024, this initiative has successfully disbursed over $1 billion to nonprofit providers within three months.
  • Discretionary Contract Reform: Introduced by Mayor Adams and City Comptroller Brad Lander, this reform eliminates nine months of delays in the discretionary contracting process, allowing nonprofits to enter multi-year contracts and bypass the annual procurement cycle.
  • Enhanced Training and Guidance: The city has introduced training programs, office hours, and best practices for agencies to prevent future backlogs.

Adams emphasized, “Nonprofit workers should never have to worry about receiving payments on time. These reforms demonstrate our commitment to cutting red tape and unlocking critical funding.”

Tackling Systemic Challenges

Sedillo acknowledges the challenges nonprofits face due to payment delays, which jeopardize their ability to deliver essential services. He aims to work closely with nonprofit leaders and city agencies to foster collaboration and implement systemic reforms.

“The biggest challenge is aligning the numerous city agencies that manage nearly $20 billion in human service contracts annually,” Sedillo explained. He plans to use data-driven analysis and engage with advisory boards and nonprofit leaders to streamline payment processes further.

Addressing Historical Frustrations

For years, nonprofit organizations have expressed frustration over delayed payments, which have strained their resources and hindered operations. Leaders like Shervon M. Small, executive director of Legal Services NYC, have called for immediate action, citing dire financial circumstances.

While Sedillo remains optimistic, he recognizes the urgency of the issue. Beyond resolving payment delays, he envisions a cultural shift in how the city views its relationship with nonprofit providers. “It’s vital to celebrate the partnership between city administration and nonprofits as we deliver essential services to our residents,” Sedillo said.

A Commitment to Human Services

The Adams administration has already allocated $741 million to increase wages for 80,000 human services workers. This investment underscores the city’s dedication to strengthening the nonprofit sector and supporting those who provide critical services to New Yorkers.

Adams concluded, “We are committed to championing nonprofits and the invaluable work they do. Our goal is to ensure a culture of service within our administration that prioritizes the needs of these essential providers.”

With new leadership, strategic reforms, and a renewed commitment to collaboration, New York City is poised to address nonprofit payment delays and strengthen its support for organizations serving the community.

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