Discretionary Award Process

Discretionary funding is a monetary award given by the New York City Council to meet local needs and fill gaps in City Agency services.

The multiyear discretionary contract reform now allows your organization to enter one three-year contract per City agency, potentially eliminating nine months of contracting should your organization receive funds in the outyears. Refer to the Fiscal Year 2024 Multiyear Discretionary Contracting Provider FAQ for more information.

For a detailed walkthrough on how to budget and invoice your multi-year discretionary contracts in PASSPort, watch our webinar PASSPort Financials for Discretionary Providers.

New for Fiscal Year 2025! Nonprofits that only receive Discretionary funding may now fulfill prequalification in PASSPort through the new, simple 3-question Discretionary Prequalification Application, which also gives nonprofits the option to request a 30-day extension for financial statement audits or reviews.

Discretionary Funding Basics

• Only nonprofits may apply.
• Non-competitive procurement process.
• Awarded for a single Fiscal Year.
• Application process begins annually in January.
• Awardees should be the primary service providers for the programs being funded, and their requests must have a public purpose, i.e., open to members of the public.

To learn more, please refer to this Guide: Understanding New York City Council Discretionary Funding and Discretionary Checklist.

The Discretionary Award Contracting Process

Contract Documents

Discretionary awardees may be required to complete and submit the following documents as part of the contracting process in PASSPort. Awardees contracting through the Department of Youth and Community Development (DYCD) may reference the DYCD Discretionary Contracts page for additional information.

• Scope of Work (template supplied by contracting agency)
• Budget Detail (template supplied by contracting agency)
• Certification Regarding Substantiated Cases of Client Abuse or Neglect
• Proof of insurance (obtained from Insurance Broker):
• Insurance Broker’s Certification
• Disability Insurance
• General Liability Insurance
• Workers’ Compensation
• Tax Affirmation
• EO 64 Certification and Policies (uploaded to PASSPort Vendor Profile)
• If utilizing subcontractors or consultants:
• Exhibit B Coversheet – Subcontractor Approval Form
• Exhibit B – Conflict of Interest Disclosure and Compliance Certification
• Capacity Building Training Certificate, if applicable (system generated certificate) – refer to the training page for more information.

Capital Projects

Each year during the budget process, members of City Council assign discretionary funds to nonprofit organizations' capital projects (such as construction and equipment purchases). To apply for capital discretionary funding, visit CapGrants.