Cities using 3rd parties such as NGOs or non-profits to solve a problem creates a perverse incentive for the NGO to keep the status quo or even make the problem worse.
Many cities will use public money to fund NGOs to make some problem go away. These NGOs are often created by cronies in the city government and the executives of the NGOs pay themselves fat salaries.
Ostensibly the NGO works on solving the problem. But if the problem goes away, the fat salaries of the NGO executives goes away. So the NGO will go for years without making any progress. Or will find ways to surreptitiously make the problem worse. Murky accounting keeps the public from seeing how money is spent.
This is why problems like homelessness in California keeps getting worse despite more and more money being shoveled at the problem. (In my city, we spend about $100k/per homeless person per year).
This type of corrupt structure needs to be outlawed at every level of government.
(NGO stands for non-government organization)