San Francisco’s youth and family nonprofit, Collective Impact, has narrowly avoided a ban on city contracts despite its involvement in a bribery and corruption scandal. An administrative law judge, Andrea McGary, issued a late-night ruling that allows the organization to receive public funds once again. This decision was finalized before McGary reviewed what she described as “critical” information necessary for the case.
The city attorney’s office quickly condemned the ruling, characterizing it as “bizarre” and announcing plans to appeal. Jen Kwart, representing the city attorney’s office, expressed disbelief, stating that it was “absurd anyone would think Collective Impact is a responsible contractor that can be trusted with public money,” as reported by the San Francisco Chronicle.
The controversy surrounding Collective Impact stems from serious allegations regarding the misuse of city funds and bribery involving former city official Sheryl Davis, who previously led the San Francisco Human Rights Commission. Both Davis and James Spingola, the recently resigned executive director of Collective Impact, were found to have improperly benefited from the nonprofit’s resources, including funding for personal expenses related to Davis’s book promotion and podcast.
City Contracts and Financial Misconduct
The city severed ties with Collective Impact, canceling five contracts amid allegations of conflicts of interest. According to reports from Hoodline, the organization was linked to questionable financial practices, raising concerns about its ability to manage public funds responsibly.
McGary’s ruling has raised eyebrows due to its lack of detailed analysis and reasoning, leaving city officials astonished by the decision to reinstate Collective Impact as a city contractor. The city attorney’s office criticized the ruling for not adequately addressing all provided evidence, a concern highlighted in the San Francisco Chronicle’s coverage. The timing of the ruling has also added to the controversy surrounding the case.
The financial issues surrounding Collective Impact are further compounded by the Dream Keeper Initiative, an initiative aimed at directing funds into San Francisco’s Black community. This program was overseen by Davis and faced scrutiny after an audit revealed at least $4.6 million in misallocated or misspent funds. As a major beneficiary of this initiative, Collective Impact now finds itself at the center of a significant financial scandal.
The ongoing developments raise critical questions about accountability and oversight for nonprofits receiving public funds in San Francisco. As the city attorney prepares to appeal McGary’s decision, the implications for Collective Impact and similar organizations could be profound, affecting their future operations and trust within the community.
