The San Francisco County government meeting on July 4, 2025, focused on a significant ordinance aimed at enhancing the oversight and accountability of nonprofit organizations contracting with the city. The proposed legislation, sponsored by Supervisor Catherine Stephanie, seeks to clarify the responsibilities of the city controller in auditing and monitoring these nonprofits, which play a crucial role in delivering essential services to the community.

Supervisor Stephanie introduced the ordinance following a citywide performance audit released in August 2024, which highlighted inefficiencies in how the city measures nonprofit performance. The ordinance mandates the controller to establish measurable performance goals for contracts, conduct annual reviews of compliance, and revise policies to ensure adherence to city guidelines. Currently, the city allocates over $1.7 billion to more than 600 nonprofits, which provide services ranging from health care to homelessness support.

The legislation aims to address concerns raised by nonprofit service providers regarding inconsistent compliance requirements and to improve transparency in how city funds are utilized. It emphasizes the need for standardized performance criteria and a corrective action policy to ensure that nonprofits meet their contractual obligations effectively.

Laura Marshall from the controller's office provided an overview of the ordinance, noting that it would create a more organized approach to monitoring nonprofit performance across various city departments. The legislation also includes provisions for increased transparency, requiring the controller's office to review publicly available information and issue annual reports on compliance with monitoring practices.

Additionally, the ordinance proposes that nonprofits receiving at least $750,000 in city contracts submit audited financial statements, aligning with federal guidelines. This move aims to establish a consistent standard for financial oversight, which has been variable across departments.

The meeting underscored the importance of ensuring that taxpayer dollars are spent efficiently and effectively, particularly as San Francisco faces economic challenges and rising public dissatisfaction with local government. The ordinance is seen as a crucial step toward improving accountability and ensuring that nonprofits deliver measurable results for the community. The next steps involve implementing the new policies by September 2024, with ongoing discussions about technical assistance for nonprofits to navigate these requirements.