The next nonprofit scandal shakes San Francisco

Image by Wikimedia Commons

Last Thursday, SF's Human Rights Commission head Sheryl Davis resigned after it was discovered she'd hidden her personal relationship with a nonprofit executive, while pledging $1.5 million in City funding to his organization. Below, the SF Standard reports on this controversial “Dream Keeper Initiative” (led until now by Davis), and its troubled history re: funding nonprofit partners.

Sheryl Davis, head of San Francisco’s embattled Human Rights Commission, resigned Friday morning after The Standard raised questions about spending for the Dream Keeper Initiative, a program she led.

On Thursday, The Standard reported that Davis had signed off on $1.5 million in contracts toward a nonprofit executive with whom she shared a home while never disclosing the relationship to the city. When presented with evidence of the connection, the mayor’s office said Thursday that Davis was on leave. …

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The Dream Keeper Initiative, which has directed tens of millions of dollars toward the city’s Black communities each year, was a flagship project of Mayor London Breed. It was first conceived in 2020 after the murder of George Floyd.

In recent months, however, the program has been dogged by questions about transparency and whether funds were spent appropriately. The Standard reported in July that, among other issues, millions in funds allocated to the Dream Keeper Initiative had gone unspent, while some of the initiative’s partners had spent money in ways that raised eyebrows among city officials. …

The Standard’s investigation found that Davis approved contracts for the nonprofit Collective Impact, run by James Spingola, without notifying City Hall about their relationship. In addition to sharing a home address, Davis co-owns a car with Spingola. The arrangement appears to violate city rules requiring disclosure of personal relationships with recipients of city funding. …

[Mawuli] Tugbenyoh, who was informed about the change of leadership in a call from the mayor’s office, said the appointment was “a bit unexpected.” He said the Human Rights Commission does important work, and that he plans to create more oversight to “rebuild the public’s trust in how those dollars are spent.”

“I know that he’s well prepared to handle the complexities of heading up the department,” said state Controller Malia Cohen of Tugbenyoh, who formerly worked for her as an aide.

Asked about the scandals surrounding the Dream Keeper Initiative, Cohen said, “I think everyone has to pay close attention to how every tax dollar is spent.”

Read the whole thing here.

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Related:

• SF Supes: It's time we crack down on failing, money-sucking nonprofits

• Mr. Jennings, what is “yet another SF nonprofit scandal”?

• SF Supervisor: Here's how the city can keep tabs on nonprofit partners

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