NJ YMCA State Alliance Advocates for A4692 to Improve Nonprofit Funding Efficiency - April 2025 Newsletter

Trenton, NJ – The New Jersey YMCA State Alliance is urging lawmakers to support A4692, a bill designed to streamline funding processes for nonprofits, ensuring timely payments, fair reimbursement, and reduced administrative burdens.

During testimony before the Assembly Budget Committee, Marissa Davis, Vice President of the NJ YMCA State Alliance, emphasized the critical role the YMCA plays as the state’s largest community-driven nonprofit, serving over 505,000 residents in 2023. The YMCA provides essential programs in childcare, after-school services, swim safety, senior wellness, chronic disease prevention, and food and housing assistance—often in partnership with state and local governments.

However, despite these partnerships, excessive bureaucratic inefficiencies frequently hinder nonprofits from effectively delivering services. "A4692 offers a critical solution," Davis stated, highlighting the challenges nonprofits face due to inconsistent reporting standards, shifting requirements, and payment delays.

One pressing example involves the YMCA’s SNAP Navigator program, which operates across 15 counties, assisting food-insecure residents in accessing nutrition assistance. While the YMCA’s frontline staff provide hands-on support, administrative hurdles have created significant funding challenges. Shifting financial reporting requirements have led to unexpected costs, while duplicative reporting processes across multiple state contracts waste valuable time and resources.

Additionally, last-minute rule changes to staff tracking policies have resulted in delayed reimbursements, forcing local YMCAs to shoulder program costs while awaiting approvals. "These constant, avoidable obstacles create an unpredictable funding environment, leaving YMCAs scrambling to cover expenses while still serving those in need," Davis noted.

A4692 would standardize compliance requirements, ensure predictable funding, and protect nonprofits from abrupt contract changes, allowing organizations like the YMCA to focus on their mission rather than administrative red tape.

"With costs rising and government resources limited, this legislation is essential to strengthening the partnership between the state and community-based organizations," Davis concluded, urging committee members to support A4692 for a more cost-effective, efficient, and impactful nonprofit sector in New Jersey.