Press Release

Controller Issues Annual Fiscal Monitoring Report on Nonprofit Contracts

Of the 197 nonprofit contractors monitored to ensure public funds are spent in alignment with the City’s financial standards, four were placed on elevated concern status.
December 19, 2023

SAN FRANCISCO, CA — In FY23 (between June 2022 and July 2023), the City and County of San Francisco contracted with over 600 nonprofit providers to deliver $1.7 billion of safety net services, ranging from family support services, homelessness and housing services, and senior services, to veteran’s services and workforce development services. Our annual report and accompanying dataset detail the financial and operational health of 197 of these organizations. These 197 nonprofits either receive City funding above a certain threshold, contract with multiple departments, or were selected for fiscal monitoring based on a risk assessment. 

In this most recent fiscal year, the City monitored more nonprofits than in years prior, and the majority of them were found to have sustainable fiscal operations in alignment with the City’s financial and administrative standards. Four contractors out of the 197 have been placed or kept on Elevated Concern status, meaning that these nonprofits need technical assistance to build proper fiscal and management practices, along with additional attention to address outstanding issues. These four organizations are:

  • Bayview Hunters Point Foundation for Community Improvement
  • HomeRise
  • African American Art and Culture Complex
  • PRC and Baker Places, Inc.

No nonprofits are currently on Red Flag status, which is one step above Elevated Concern and requires further corrective action. 

“Nonprofit organizations under contract with the City deliver some of the most critical services supporting residents in great need. We trust these monitoring results highlight areas where some contractors are struggling and require technical assistance or other interventions," said Controller Ben Rosenfield. "Our fiscal and compliance monitoring program is one component of a growing number of tools and strategies we’re using to ensure these services are monitored and, where needed, improved. Accountability and assistance are both important components of all of our initiatives.” 

In April 2023, the Controller’s Office issued a report about nonprofit worker wages and demographics which helped inform FY23-24 budget allocations to increase wages in key sectors. To further our goals to improve government operations, the Controller’s Office developed guidance and policy regarding multi-year contracting principles and is currently in the process of implementing a new ordinance to ensure inflation is accounted for in nonprofit contracts. Since the start of this fiscal year, the Controller’s Office has engaged department and nonprofit staff in developing guidelines and standards related to programmatic contract monitoring. This new initiative will enhance accountability of both departments and their nonprofit contractors and seeks to improve the way the City measures the impact and results of the vast array of services delivered to the public by the City’s network of nonprofits contractors. The Controller’s Office anticipates releasing new policy and tools for this initiative later this fiscal year.

In addition to nonprofit monitoring, the Controller’s Office provides training workshops and individualized coaching services for nonprofit contractors. Visit SF.GOV for information on the Citywide Nonprofit Monitoring and Capacity Building Program.