CAMPAIGN
Policy Development Process: Nonprofit Contracting and Oversight
CAMPAIGN
Policy Development Process: Nonprofit Contracting and Oversight
About This Page
The San Francisco Controller’s Office issued policies on December 9, 2024 to improve the City’s oversight of nonprofit contractors. The Controller’s Office developed these policies using a rigorous input and feedback process which included using this page to gather feedback. Upon publication of these policies, the Controller's Office updated this page to provide a record of the feedback process, a summary of the feedback received, and links to the final policies.Policies and Feedback
1. Contract Monitoring Policy
This policy establishes Citywide requirements and guidance for departments in monitoring the performance of contracts with nonprofit service providers.
2. Citywide Nonprofit Corrective Action Policy
This policy helps to identify nonprofit contractors that are not meeting City standards for service delivery or financial management and ensure the City provides appropriate support, technical assistance, and oversight to address these issues.
3. Policy on CPA Audit Requirements for Nonprofits
This policy operationalizes the requirements for nonprofit submission of audited financial statements to the City when they receive threshold funding in a given year.
Policy Development Process
- The Controller’s Office has been working to enhance and standardize oversight of nonprofit contractors since legislation on the topic was first introduced at the Board of Supervisors in September 2023.
- In March 2024, the Board of Supervisors passed an ordinance (55-24: Monitoring of Nonprofits that Contract with the City) directing the Controller’s Office to develop several Citywide policies around nonprofit contracting and oversight.
- Throughout the last year, the Controller’s Office engaged City departments and nonprofit staff to understand current practices and gather input on the new policies. Each policy underwent multiple rounds of revision based on feedback gathered through this engagement. Draft versions of the policies were issued on September 9, 2024.
- In September 2024, the Controller’s Office sought input from nonprofit staff and members of the public who are interested in City contracting and oversight practices by posting the draft policies on this page and providing forms for gathering policy input.
- The Controller's Office hosted an online information session on September 18 to allow members of the general public and nonprofit employees to learn more about the policies.
- The Controller’s Office considered all input provided between September 9 and September 29.
- The Controller’s Office issued final policies on December 9.
Read a summary of the input process and feedback received here.
Helpful Resources
Related Materials
- Read the ordinance (055-24) directing the Controller’s Office to develop these three policies.
- View the Controller's Office Programs, Policies, and Information on Nonprofit Contracting page to learn more about the Controller’s Office’s work on nonprofit policy and oversight.
- Visit the Citywide Nonprofit Monitoring and Capacity Building Program to get more information about the Controller's Office's program coordinating nonprofit and contract monitoring and capacity building.
- View the San Francisco Nonprofit Spending and Contracts dashboards for summary data on Citywide spending on nonprofit contractors.
- View an interactive directory of accounting firms interested in conducting nonprofit financial audits. Nonprofit organizations can use this to connect with auditors that meet their needs.
- Explore the Public Information about City Contracts with Nonprofits page for an overview of how to find more information about nonprofit spending, performance, and services.
- Learn more about City policies and legislation related to contracting with nonprofits.
Questions?
If you have questions, please email nonprofit.monitoring@sfgov.org.
About
The Controller is the chief accounting officer and auditor for the City and County of San Francisco. The San Francisco Charter provides the Controller with the authority to perform regular oversight of the City’s contracting procedures.
The Controller’s Office works to standardize and improve the City’s oversight of nonprofit contractors, who provide a wide range of essential services for City residents. This page outlines the process of developing three key policies related to that work.
Questions? Email nonprofit.monitoring@sfgov.org