RESOURCE COLLECTION
City Policies and Legislation about Nonprofit Contracting
Policies and legislation that govern nonprofit contracting in San Francisco.
Controller's OfficeOverview 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. Updated October 2025.
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. Updated February 2026.
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
Policy issued September 14, 2023 on the Cost of Doing Business (CODB) adjustment for General Fund contracts and grants with nonprofit
organizations. It also includes updates to the Minimum Compensation Ordinance (MCO) which sets the minimum hourly wage threshold for applicable nonprofit workers on City contracts.
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, timelines, 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.
Extension of Nonprofit Audit Requirements - Instructions and Request Form
Instructions and request form for nonprofits seeking an audit extension. Updated as of December 2025.
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
2024 Corrective Action Policy
2024 version of the Corrective Action Policy, ensuring compliance with funding requirements, accountability, and reliable service delivery.
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.
2014 Corrective Action Policy
Earlier version of the Corrective Action Policy, ensuring compliance with funding requirements, accountability, and reliable service delivery.
More Information
- 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.