Nonprofits and government contracts

Date Posted: 11/22/2017
Last Updated: 5/30/2024


Following up on 2010 research from the Urban Institute, the N.C. Center for Nonprofits has been working to  identify and fix nonprofit government contracting problems in North Carolina. We have prepared a report highlighting our findings, which include:

  1. The government contracting system has improved over the last two years, making nonprofits and state government more efficient. This is due to collaborative efforts between nonprofits and state agencies that were initiated by the N.C. Center for Nonprofits.
  2. Late payments and underpayments of nonprofits are still major problems for nonprofits that contract with state government.
  3. State budget cuts have hurt nonprofits and the North Carolinians they serve. They have forced nonprofits to lay off staff and provide fewer essential services throughout the state.

The government contracting problems identified in these studies hurt all North Carolinians. As a result of these inefficiencies: taxpayers and nonprofits are wasting money and resources; North Carolina’s economy is weakened, because nonprofits have to eliminate jobs and reduce salaries and benefits; and North Carolinians in need are not getting access to essential services.

Let us know your feedback about the findings in this report and the Center's recommended actions for policymakers