City Policies and Legislation about Nonprofit Contracting

Policies and legislation that govern nonprofit contracting in San Francisco

Overview of Policies and Legislation

The City and County of San Francisco (City) develops policies and legislation governing how City departments do business with nonprofits, including contracting and oversight procedures.  

This page provides information about many of the most relevant policies and legislation, under the following categories:

  • Policies and Guidance on Contracting and Monitoring: Policies that departments must follow when contracting with nonprofits. This includes policies on fiscal and programmatic monitoring and corrective action, as well as policies resulting from local legislation.
  • Nonprofit Compliance with Local and State Regulations: Policies related to local and state laws that nonprofits must follow when doing business with the City. This includes requirements for registration with the California Attorney General and for posting economic statements.
  • City Ordinances, Legislation, and Executive Directives: Legislation and Executive Directives that shape the policies that govern nonprofit contracting.
  • COVID-Related Policies: Historical policies responding to the impacts of the COVID-19 pandemic on nonprofit contracting.
  • Archive of Other Policies: Archived policies and past versions of current policies published by the Controller’s Office. 

The Controller's Office, City Attorney, City Administrator's Office, the Mayor’s Office, and/or the Board of Supervisors all have a role in establishing legislation and developing policy. The Controller’s Office helps departments and nonprofits with the implementation of many of these policies. 

Resources

Policies and Guidance on Contracting and Monitoring

Contract Monitoring Policy

Policy establishing Citywide requirements and guidance for departments in monitoring the performance of contracts with nonprofit service providers.
Fiscal Monitoring Guidelines

Guidelines for departments on how to conduct annual fiscal monitoring and oversight of nonprofits.
Citywide Nonprofit Corrective Action Policy

Policy defining Citywide corrective action criteria and processes for identifying nonprofit contractors that are not meeting City standards for service delivery or financial management.
Guidelines for Cost Categorization in Nonprofit Contracts and Grants

Guidance on the treatment and allowability of direct and indirect costs in City grants and contracts with nonprofits.
Guidance on the Fiscal Year 2023-2024 and Fiscal Year 2024-2025 Cost of Doing Business Allocation and Minimum Compensation Ordinance Increase within Nonprofit Agreements

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2024 Policy on Multi-Year Contracting with Inflation Rates for Nonprofit

Policy establishing that City departments that contract with nonprofits should use multi-year agreements when services are expected to extend beyond one year.

Nonprofit Compliance with Local and State Regulations

City Nonprofit Contractor Compliance with California Attorney General Registry of Charitable Trusts

Policy outlining the processes City departments use to ensure nonprofits comply with California Attorney General registry requirements.
Learn about the nonprofit annual economic statement

Find information about reporting requirements, timeline, and compliance.
CPA Audit Requirements for Nonprofits

Policy operationalizing the requirements for nonprofit submission of audited financial statements to the City when they receive threshold funding in a given year. 

City Ordinances, Legislation, Executive Directives

Monitoring of Nonprofits that Contract with the City

Ordinance amending the Administrative Code to clarify the Controller’s audit and monitoring responsibilities of nonprofit organizations contracting with the City.
Annual Economic Statement Ordinance

Ordinance requiring nonprofits that receive more than $100,000 annually from the City to file an annual economic statement with the City Administrator.
Nonprofit Grant Administration Reform

Directive to City departments on implementing policies to improve the administration of nonprofit contracts.
Complying with Executive Directive 24-04 on Nonprofit Grant Administration Reform

Controller’s Office Guidance on Executive Directive 24-04 on Nonprofit Grant Administration Reform.
Nonprofit Public Access Ordinance

Administrative Code requiring public access to records and meetings of nonprofit organizations.
City Policy Regarding Multi-Year Grants

Ordinance amending the Administrative Code to adopt a City policy that departments will enter into multi-year grants when the need for a grant program will extend beyond a single year.

COVID-Related Policies

Continuity of Payment for Nonprofit Suppliers in the Event of COVID-19 Related Disruptions

Archived policies regarding the allowability of City payments to nonprofit suppliers unable to deliver services due to COVID-19 disruptions. The link will direct you to the Controller’s Office report search tool filtered to show all iterations of these policies over time
Expedited Contract Modification Policy for Agreements

Archived policies allowing departments to modify contracts during the COVID-19 pandemic. The link will direct you to the Controller’s Office report search tool filtered to show all iterations of these policies over time.

Archive: Other Policies

2014 Corrective Action Policy

Earlier version of the Corrective Action Policy, ensuring compliance with funding requirements, accountability, and reliable service delivery.
2022 Guidance to Departments on the Treatment of the Fiscal Year 2022-2023 Cost of Living Adjustment and Cost of Doing Business Allocation within Nonprofit Contracts and Grants

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2023 City Nonprofit Supplier Compliance with California Attorney General Registry of Charitable Trusts

Policy outlining the processes City departments will use to ensure nonprofits comply with State law.

Related Resources

Policy Development: Nonprofit Contracting and Oversight

Learn more about the policy development process for Controller's Office nonprofit policies released November 2024.

More Information

Departments

Controller's Office