SF Supervisor: Here's how the city can keep tabs on nonprofit partners
Image by Plaisanter on Flickr
SF Standard's Josh Koehn explains Supervisor Catherine Stefani's proposed legislation, which would require nonprofits receiving SF city funding to regularly submit audited balance sheets, and align their actions to “measurable objectives” (rather than neglecting purported core purposes). In the wake of seemingly endless city–nonprofit scandals, many are agreeing: It's about time.
The city currently gives $1.7 billion to more than 600 nonprofits, but a report by The Standard earlier this year found that almost 140 nonprofits had fallen out of good standing with the state and $25 million in public funds went to organizations that should have been barred from doing business with San Francisco. A follow-up story found that city departments were failing to properly monitor contracted nonprofits, many of which are tasked with tackling the city’s most pressing challenges, such as homelessness, drug addiction and mental health.
Stefani’s legislation would require nonprofits that receive contracts worth at least $750,000 in a fiscal year to submit balance sheets audited by an outside accounting firm. The City Controller’s Office would be given additional powers to monitor the financial dealings of nonprofits, and the city would also be forced to put firmer rules in place to include “measurable objectives” in contracts.
“This legislation represents a significant stride towards building a more transparent and accountable government that delivers high-quality services to our residents,” Stefani said in a statement. “By implementing these measures, we aim to strengthen the partnership between our city and its nonprofit collaborators, ensuring our collective ability to serve the community effectively and efficiently.”
In the last two years, audits by the Controller’s Office have uncovered numerous issues with nonprofits that have received millions of dollars in taxpayer money.
Last fall, the homelessness services nonprofit United Council of Human Services was accused of mismanaging funds and keeping incomplete records after receiving tens of millions of dollars in city contracts. City officials referred the nonprofit’s CEO to the FBI and District Attorney’s Office for criminal investigations, and the organization was eventually banned from receiving future contracts.
These reports followed the near-collapse of Baker Places and Positive Resource Center, two connected nonprofits that requested two emergency bailouts in the span of months to continue providing behavioral health services.
This article originally appeared in the San Francisco Standard. Read the whole thing here.
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