San Francisco is facing scrutiny over its S.F. nonprofit sector, with numerous organizations mired in scandal and corruption. Reports and public outcry have highlighted issues with charities that contract with the city or receive grants, raising concerns about the misuse of funds and lack of accountability. Mayor Mark Farrell has pledged to mandate performance-based contracts for all nonprofits, immediately audit homelessness and community health and welfare budgets, and hold corrupt actors accountable. An audit in Oakland revealed that $70 million was spent on homelessness programs without tracking outcomes, underscoring the broader issue of inefficiency and lack of transparency in the management of public funds for social services.