In a move described as "bizarre" and "absurd" by city officials, San Francisco youth and family nonprofit Collective Impact has been granted a reprieve, allowing it to once again receive public funds. The decision comes after a corruption and bribery probe that had threatened to debar the organization for up to five years. The ruling, however, is being met with strong criticism from the city attorney’s office, which plans to appeal.
Key Takeaways
- Collective Impact, accused of corruption and bribery, has had its ability to receive public funds restored.
- The administrative law judge’s decision was made shortly before midnight, before receiving "critical" information requested from the parties.
- The nonprofit’s director, James Spingola, who was tied to former Human Rights Commission head Sheryl Davis and a corruption scandal, is stepping down.
- The city attorney’s office is heavily criticizing the ruling’s process and lack of reasoning, calling it "bizarre" and "absurd."
A Midnight Decision Shocks City Officials
Administrative law judge Andrea McGary cleared Collective Impact of the charges around midnight on Wednesday, just hours after requesting crucial information. The decision was made before this information was submitted and days before the deadline set for its delivery. This has led to strong condemnation from the city attorney’s office, which views the process as highly irregular and unprecedented.
Ties to Corruption Scandal
Collective Impact’s director, James Spingola, is under scrutiny for his connections to Sheryl Davis, the former head of the Human Rights Commission, who is at the center of a corruption scandal involving millions in questionable expenses. Collective Impact reportedly paid for some of these expenses, including trips. Spingola, who was living with Davis at the time and received substantial grants, announced his resignation citing the scandal’s toll on his health.
The Dreamkeeper Initiative Fallout
The scandal is linked to the administration of the city’s Dreamkeeper Initiative, a $60 million program aimed at supporting the African American community. Audits revealed significant misallocation and misspending of funds, with Collective Impact implicated in some of these prohibited purchases. The Human Rights Commission has since lost substantial funding.
City Attorney Plans Appeal
The city attorney’s office had moved to suspend Collective Impact from receiving public funding in March, seeking to debar the nonprofit for up to five years. Despite the recent ruling, the city attorney’s office intends to appeal, citing the judge’s conduct and the lack of analysis in her decision. The ruling, while restoring Collective Impact’s eligibility to bid on city contracts, does not guarantee immediate funding as the nonprofit currently has no active city grants.
Nonprofit’s Response
Collective Impact expressed gratitude for the decision, stating that the accusations were speculative and unsupported by evidence. The organization acknowledged the personal toll the process has taken. The board also announced Spingola’s departure, citing his well-being.
Ongoing Investigations
Sheryl Davis maintains her innocence, claiming ignorance of disclosure rules, despite extensive ethics training. She faces her own probes, including a potential criminal investigation. An audit found her department misused $4.6 million in public funds. A separate audit on Collective Impact’s spending is anticipated in early 2026.
Sources
- In ‘bizarre’ midnight move, S.F. nonprofit beats city corruption probe, Mission Local.
- Nonprofit wins ruling over SF in bribery probe in ‘bizarre’ ruling, San Francisco Chronicle.
