The Hell-Raiser's Blog: Nonprofits and "Metrics"

I have heard a couple of Seattle's city officials say that funding practices for homeless service providers are going to have to change - that providers are going to have to demonstrate results if they want to get funding (again).
This is unsettling. Is the City funding agencies that aren't doing their job, and if so, why? Or could it be that homeless service providers are doing good work, but the enormity of the problem compared to the pitiful resources allocated nonprofits renders significant change impossible?
Two questions:
1. What kinds of results?
2. Will Boeing and other recipients of, um, generous tax breaks have to demonstrate results?