The Denver City Council took a decisive step toward tightening fiscal oversight on Monday evening, voting unanimously to implement new governance measures for several high profile nonprofits managing city tax dollars. The move specifically targets Caring for Denver along with the Prosperity Denver Fund and the Denver Preschool Program, ensuring that these entities operate with greater accountability. Under the new rules, up to one percent of designated tax revenue will be diverted to enhance oversight, while Caring for Denver is now officially subject to public records laws.
The legislative push follows a series of troubling revelations sparked by a 2024 investigation by CPR News and a subsequent audit from the city. Investigators discovered that Caring for Denver, which distributes over 40 million dollars annually for behavioral health services, had previously operated under the belief that it was exempt from open records requests. More concerning were findings that millions in funding reached providers with criminal histories and that some applicants had deceived the organization regarding their credentials and government ties.
Beyond transparency concerns, the council moved to shut down an unethical spending habit involving taxpayer money. A city auditor revealed that Caring for Denver had been reimbursing staff and executives for alcohol purchases, a practice Councilwoman Amanda Sandoval noted would never be permitted for city employees or political campaigns. By banning the use of administrative funds for alcohol across all three targeted nonprofits, the council aims to align private fund managers with the strict ethical standards expected of public officials.
To ensure future efficacy, Caring for Denver must now develop a comprehensive strategic plan featuring measurable goals and clear performance metrics. This comes after auditors found the organization struggled to prove that its grants were exclusively benefiting Denver residents or achieving their intended outcomes. While the council increased the allowable administrative spending cap from five to seven percent to support these improvements, they emphasized that the priority remains protecting citizen money across every stage of life, from early childhood education through lifelong mental health care.
