Denver City Council voted 11-0 on Monday, Oct. 5, to impose new oversight and spending rules on three nonprofits that manage city tax revenue, including the Caring for Denver Foundation, which funds mental health and substance-use programs. The ordinance makes Caring for Denver subject to public records laws, bars the use of administrative funds for alcohol and allows up to 1% of the designated tax revenue to be used for increased oversight. The Denver Preschool Program and Prosperity Denver Fund, which supports efforts including college scholarships, will also be brought under aligned governance requirements. Caring for Denver must develop a strategic plan with goals, measurable objectives, an implementation timeline and performance measures. The measure also raises the share of tax revenue the foundation may spend on administration from 5% to 7%. The vote follows scrutiny of the foundation’s management of public funds. A Denver auditor’s report earlier this year found limited transparency and due diligence in reviewing grant recipients. It also said the foundation could not verify that its funded programs served only Denver residents or demonstrate that the programs were effective in meeting voters’ goals. The auditor’s office also found that the foundation reimbursed staff and executives for alcohol purchases. A 2024 investigation found that Caring for Denver had considered itself exempt from open-records requirements and that some records were released only after a board member intervened. The investigation also reported that millions of dollars went to providers with criminal records and that some applicants misrepresented their work or relationships with government agencies. Councilmember Amanda Sandoval, a sponsor of the ordinance, said organizations spending taxpayer money should follow the city’s restrictions on alcohol. Councilmember Jamie Torres, another sponsor, described the changes as strong governance for the city’s partnerships with outside nonprofits. Denver voters approved the Caring for Denver Fund in 2018, and the foundation was established the following year to distribute money for behavioral health services. It spends more than $40 million in city tax revenue annually.