Suspended, Revoked Nonprofits Could Lose City Contracts Under New Policy

by Noah Baustin, Josh Koehn : sfstandard – excerpt

San Francisco officials announced a new policy Tuesday that puts more than 100 nonprofits with roughly $300 million worth of city contracts at risk of being barred from doing business with the city unless they come into compliance with state regulations.

In January, The Standard reported that San Francisco doled out more than $25 million in taxpayer dollars last year to nonprofits that were blocked by state law from receiving or spending funds because they failed to maintain good standing with the California Attorney General Registry of Charitable Trusts.

As of December, the city had contracts for the current fiscal year with 139 nonprofits that were out of compliance with the state registry. Those nonprofits, which deal with issues ranging from homelessness and drug addiction to education and the arts, still had remaining contract balances totalling nearly $304 million.

The new policy, issued jointly by the offices of the City Controller, City Attorney and City Administrator, explicitly states that San Francisco is not authorized to continue doing business with any nonprofits in delinquent, suspended or revoked status with the state registry…

Supervisor Ahsha Safaí, who announced legislation to address the oversight of city-funded nonprofits following The Standard’s first report, issued a statement Tuesday saying more accountability is needed in managing taxpayer money. Last year, the city had nonprofit contracts totaling $1.4 billion… (more)