L.A. County’s Board of Supervisors is taking significant action toward paying homeless services providers up-front. What is the impact? Nonprofits addressing homelessness in L.A. are struggling to cover their rent, salaries and supplies. Los Angeles Times recently reported on the long wait times for nonprofits to receive reimbursement from government agencies, sometimes waiting years for payments that they needed upfront to provide their services. That's where our Bridge Loan Fund comes in. We provide interest-free loans to our nonprofit partners to bridge the delayed payments—as a result, the organizations have been able to keep staff, run payroll and maintain services. The move to up-front payments has the potential to deeply impact our ability to address homelessness in our region. Check out what our partners at Nonprofit Finance Fund recommend for the City and County to ensure this shift is a success.
NFF's Annie Chang and Jessica LaBarbera authored a new blog about how to ensure the success of up-front payments to homeless services providers in Los Angeles. They discuss challenges faced by organizations like our client The Center in Hollywood, who often experiences delays in government reimbursement: “Covering payroll is a challenge more frequently than I would like to admit. Unfortunately, we have to say no to some funding opportunities due to slow reimbursement timelines coupled with the reality that many contracts do not cover the full cost of program operations.” -Alex Hartman Sato, Executive Director of The Center With the right approach, up-front payments can meet compliance needs while giving providers the security they need to hire staff and deliver programs. Read more at: https://lnkd.in/gGkt-eYN.