San Francisco's youth and family nonprofit Collective Impact, which has been at the center of a bribery and corruption scandal, narrowly escaped a ban on city contracts. This was revealed in a late-night ruling that administrative law judge Andrea McGary issued, giving the nonprofit permission to receive public funds again. According to a Mission Local report, the decision was finalized before McGary had reviewed "critical" information she deemed necessary for the case.
Despite the nonprofit's victory in the administrative hearing, the city attorney's office slammed the decision as "bizarre" and is planning to appeal it, arguing that Collective Impact should not be considered a responsible contractor. Jen Kwart, speaking on behalf of the city attorney's office, said it was "absurd anyone would think Collective Impact is a responsible contractor that can be trusted with public money," as reported by the SF Chronicle. The controversy stems from allegations that the nonprofit misused city funds and bribed a city official, Sheryl Davis, the former head of the San Francisco Human Rights Commission.
Davis, along with James Spingola, the recently resigned executive director of Collective Impact, was found to have benefited from the nonprofit's financial resources, including funding Davis's personal book promotion and podcast expenses. Collective Impact and Davis were also linked to other questionable expenses and relationships, according to Hoodline, with the city severing ties with the nonprofit, canceling five contracts amidst conflict of interest allegations.
Contributing to the uproar, McGary's decision lacked a detailed analysis or reasoning for her ruling, leaving officials stunned by the verdict to allow Collective Impact to regain its status as a city contractor. A spokesperson for the city attorney's office described the ruling, which did not consider all the provided evidence, as lacking specificity, a point highlighted in the SF Chronicle's coverage of the scandal. This oversight, paired with McGary's unexpected timing, adds to the contention already surrounding the case.
The Dream Keeper Initiative, which aimed to channel funds into San Francisco’s Black community, was overseen by Davis and embroiled in a misuse of funds, as cited by the SF Chronicle. A subsequent audit revealed at least $4.6 million in misallocated or misspent funds. Collective Impact, a significant beneficiary of the initiative, is now caught in this monetary mishap.
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