June 2, 2010; Source: BBC News | Apparently the problem of late payments from government to nonprofits is not confined to the U.S. In the UK a legal aid organization providing services to asylum seekers is in danger of closing because it is owed upwards of two million British pounds by the government. The government says that it gave the agency plenty of warning about the impending “cost cutting measures” which have resulted in payments that have been delayed for up to two years after the work has been performed. Refugee and Migrant Justice says that it has not been able to secure credit sufficient to relieve the cash flow problems that have ensued and that the government either needs to pay more quickly or provide very low cost credit. The Archbishop of Canterbury has gotten in the mix, insisting that the problem be resolved because the agency is too important to lose.—Ruth McCambridge
About The Author
Ruth is Editor in Chief of the Nonprofit Quarterly. Her background includes forty-five years of experience in nonprofits, primarily in organizations that mix grassroots community work with policy change. Beginning in the mid-1980s, Ruth spent a decade at the Boston Foundation, developing and implementing capacity building programs and advocating for grantmaking attention to constituent involvement.