Friday

06-06-2025 Vol 1983

San Francisco Nonprofit Scandals Unveiled: A Deep-Dive into Mismanagement and Abuse

San Francisco has seen a troubling pattern of nonprofit scandals over the past five years, illuminating how many organizations mismanage funds and exploit taxpayer dollars.

Despite the commendable work of numerous nonprofits—feeding the needy, aiding the homeless, and enhancing the city’s beauty—the recent controversies have thrown them into a harsh spotlight.

Reports reveal shocking expenditures, including extravagant trips and ill-advised spending that raise serious questions about financial oversight.

The ongoing scandals surfaced prominently with the involvement of Mohammed Nuru, the former head of the Department of Public Works who was found to have misused SF nonprofits like a million-dollar slush fund.

A closer look at various nonprofits reveals a string of embarrassing exposés.

Starting with SF SAFE, which is affiliated with the SFPD, the organization has faced massive allegations following its lavish spending on parties and excessive expenditures.

An audit from January 2024 accused the now-fired director, Kyra Worthy, of using over $700,000 in public funds on luxury items like $162 gift boxes and extravagant trips to upscale locations—including Tahoe and Vegas.

Moreover, it was discovered that SF SAFE owed its vendors millions, with a shocking bank account balance of negative $16.

As a consequence, SFPD canceled all contracts with the organization, and Worthy now faces 34 felony charges.

Next up is the SF Parks Alliance, which recently gained notoriety for mishandling funds and failing to account for community groups’ deposited money.

Reports indicate that while raising significant funds through events, the agency also funded executive salary increases and has been subjected to various audits and investigations.

Unfortunately, the SF Parks Alliance was reportedly dissolved this week amid these growing controversies, and the SF District Attorney has initiated a criminal investigation.

The San Francisco Zoo, operating under a nonprofit called the San Francisco Zoological Society, has also been caught in the wave of scandal.

This past week, board members resigned following an unsuccessful attempt to remove their CEO, Tanya Peterson, who has come under fire due to a damning audit criticizing the zoo as “unsafe for visitors and animals.”

Amid allegations of withholding audit documents from the city’s regulatory bodies, the San Francisco Zoo continues to face scrutiny while trying to secure panda contributions from China.

Another troubled institution is the Aquarium of the Bay, operated by the Bay Institute.

A scandal erupted in May 2024 when a significant number of staff members resigned due to conflicts over academic peer-review processes.

Moreover, the CEO resigned after reports surfaced of extensive spending, including $460,000 on a trip to Dubai to see Stewart Copeland perform.

Following these events, the aquarium lost its accreditation but remains in operation, with a fired CEO claiming the institution secretly sold shark blood to Disney.

Urban Alchemy, known for its street ambassador programs, has also made headlines for a mix of troubling incidents.

While the nonprofit sees considerable revenue—over $60 million nationwide—numerous scandals have overshadowed its achievements, including allegations of workplace violence and illegal activities involving its ambassadors.

Despite remaining under contract with the city, Urban Alchemy may be facing layoffs due to these controversies.

Closely linked is the Collective Impact nonprofit, which received $1.5 million from the Human Rights Commission while its executive director Sherly Davis engaged in life entanglements with the director of Collective Impact, James Spingola.

The fallout from this relationship led to Davis’s resignation due to conflicts of interest, including the misuse of city funds for personal expenses such as a $10,000 vacation rental and $19,000 in tuition for her son at UCLA.

This scandal unfolds alongside issues within the Department on the Status of Women, which merged with Collective Impact to stabilize management.

Recent activities in this department raised eyebrows as director Kimberly Ellis was placed on leave after engaging in questionable fiscal practices, which Mayor London Breed termed as unlawful.

The Department encountered its own set of issues after revealing off-the-book transactions and high-priced conferences, all contributing to a broader narrative of mismanagement in San Francisco’s nonprofit sector.

Progressing to Baker Places, a nonprofit assisting addiction treatment, the city had previously allocated $1.2 million to help sustain their operations.

However, Baker Places later found itself obligated to repay the city $7.6 million due to exceeding contracted operational expenses, casting doubt on their financial practices.

Despite ongoing debts, Baker Places is still in operation but on a strict payment plan to repay the city.

The findings are further reinforced by concerns surrounding HomeRise, a provider of homeless services, which faced an April 2024 audit revealing misallocated resources.

As staff received problematic raises and bonuses, the audit highlighted a significant backlog of empty housing units that could have been utilized to improve the situation for the previously homeless.

Under new leadership, HomeRise persists in its mission but continues to undergo scrutiny regarding its spending decisions.

Lastly, the overarching narrative surrounding Mohammed Nuru, while not strictly a nonprofit scandal, illustrates the broader misuse of the nonprofit structure for personal gain.

He was able to manipulate the nonprofit landscape, particularly using the SF Parks Alliance to funnel donations from city contractors like Recology for unauthorized luxuries enjoyed by city officials.

Despite his criminal activities leading to a seven-year prison sentence for fraud and bribery, the repercussions of his actions ripple through San Francisco’s charitable organizations that remain tainted by his machinations.

The dissolution of the Parks Alliance highlights an urgent need for reform in how nonprofits are managed and monitored to prevent similar abuses of power from persisting in the future.

image source from:https://sfist.com/2025/06/04/sfs-10-wildest-nonprofit-spending-scandals-of-the-last-five-years-ranked/

Charlotte Hayes