On September 15th, the Human Services Council and Council Member Ben Kallos (D-Manhattan) hosted a virtual Rally to Save the Indirect Cost Rate (ICR) Funding Initiative.
Nearly 150 human services providers joined to promote the nonprofit sector and elevate our request to the Mayor to fully fund the ICR Initiative.
The ICR Initiative was a ground-breaking commitment made by the City in November 2019 to reimburse the true indirect costs of human services providers, such as rent, human resources, and IT, for which providers have long been unable to claim in full. However, retroactive reimbursements for fiscal year 20 have been cut by 40%, and the future of the initiative remains uncertain for fiscal year 21.
As a featured speaker at the rally, Urban Pathways’ CEO Frederick Shack shared “Government has for many, many years…underfunded the nonprofit sector, specifically as it relates to the indirect expenses that we incur.
“Approximately two years ago, the City agreed to begin working with nonprofits to create a consistent method for establishing an indirect rate through the creation of a cost manual. Last year the City agreed to reimburse nonprofits the full cost of the indirect expenses in accordance with that cost manual…For Urban Pathways the reimbursement was $800,000. However, in July we were told by the City that they were going to reduce our reimbursement by 40%.
“The City must make better choices. They can’t continue to attempt to balance their budget on the backs of these needy New Yorkers.”
In addition to Council Member Kallos, the rally was joined by Council Member Brad Lander (D-Brooklyn), Council Member Helen Rosenthal (D-Manhattan), Manhattan Borough President Gale Brewer, and human services provider from across the City.
Urban Pathways is grateful for the support of our elected officials and community partners! A recording of the rally can be viewed here.
