Connecticut Charities Land an Official State Liaison

Connecticut’s governor, Dannel P. Malloy, issued a news release in January titled “Gov. Malloy Announces New Initiative to Streamline and Modernize Contracting Process for Nonprofits.”

He said he planned to create a new office to handle complaints that nonprofits had raised about the red tape and late payments they face when they get state contracts to provide health and human services.

The move was just the latest step the governor has taken to recognize the role that nonprofits play in the state economy, working hand in hand with the Connecticut Association of Nonprofits, or CT Nonprofits, an organization that has one of the strongest state-level nonprofit advocacy operations in the country.

Mr. Malloy, a Democrat who took office at the beginning of last year, almost immediately created a Nonprofit Liaison in his cabinet, the only position of its kind in the country. Last fall, he appointed a Cabinet on Nonprofit Health and Human Services—made up of nonprofit, government, and union representatives—to recommend steps the state could take to improve conditions for nonprofit contractors.

Nonprofits “need to be treated with more respect,” the governor said in an interview. He said he had created the cabinet position because nonprofits, just like businesses, needed a “one-stop shop” to represent their interests. “Every state government has a banking commissioner,” he said. “Every state government has an insurance commissioner.”

Mr. Malloy entered office with a strong affinity for charities (several of his family members, including his wife, have worked for nonprofits). But he was also able to build on years of work CT Nonprofits had put into educating lawmakers and state officials about problems with state contracting. In 2009, the group issued a report about the cash-flow problems that nonprofits faced because of late payments, while also complaining about low cost-of-living increases that were putting providers “in a precarious position.”

In 2010, it helped persuade the Legislature to set up a commission to study those issues and others—and that temporary body, which issued a report last April, was the precursor to Mr. Malloy’s nonprofit “cabinet.”

The association’s relationship with Mr. Malloy stretches back to his time as mayor of Stamford from 1995 to 2009. Ron Cretaro, the group’s executive director, says it helped the mayor plan a reception for nonprofits and invited him to speak twice at its annual conference. When running for governor, Mr. Malloy attended a CT Nonprofits candidates forum and issued a policy paper saying nonprofits received too little money and appreciation and would win attention in his cabinet.

After he won the election, Mr. Malloy became the first sitting governor to address the association’s annual conference. He also appointed Terry Macy, a charity executive and member of the CT Nonprofits board, to be commissioner of the Department of Developmental Services.

CT Nonprofits has worked closely with Deb Heinrich, who gave up her seat as a state representative to become the first Nonprofit Liaison. Mr. Cretaro says she has already improved the contracting process for nonprofits, for example, by simplifying reporting requirements and making it easier for nonprofits to spend government money without prior approval.

Ms. Heinrich, who is stepping down from the position this month. says both as a legislator and in the cabinet, she relied heavily on the association for information. “They’ve been digging in this field for so long that whenever there’s an issue I want to work on, I call them and say, ‘This is my understanding, what’s yours?’”