Nonprofit organizations currently deliver approximately $1.4 billion in essential services on behalf of the City and County of San Francisco. Most nonprofits deliver high-quality services in alignment with contracted expectations, but some do not. The City lacks a standardized or coordinated programmatic and performance monitoring policy.

The ordinance directs the Controller’s Office to establish standards for contract performance monitoring, update the existing Citywide Corrective Action Policy, conduct reviews to improve public access to information about nonprofit contracted services, and ensure nonprofits receiving at least $750,000 in City funding submit audited financial statements.

The legislation will improve oversight of taxpayer money, address issues faced by nonprofits contracting with the City, and increase public access to information about nonprofit contracts.

The ordinance amends the Administrative Code to clarify the Controller’s audit and monitoring responsibilities, establish measurable performance goals for contracts, review contractor compliance policies, and require annual compliance reviews.

The ordinance becomes effective 30 days after enactment, which occurs when the Mayor signs the ordinance, it is returned unsigned or not signed within ten days of receipt, or when the Board of Supervisors overrides the Mayor’s veto of the ordinance.

The Controller’s Office is tasked with administering the Citywide nonprofit contractor corrective action policy, ensuring standardized contract performance monitoring, and carrying out annual reviews to report on compliance and recommend policy changes.