On April 22, 2024, Recreation and Parks general manager Phil Ginsburg addressed the struggling board of the San Francisco Parks Alliance during an emergency meeting.
The atmosphere was far from lighthearted; the meeting revealed troubling financial issues that ultimately contributed to the Parks Alliance’s downfall.
Ginsburg raised alarms about the organization’s handling of grant funds, highlighting that restricted money had been improperly utilized rather than being allocated to designated projects.
The minutes recorded his urging: the board must secure an institutional loan to alleviate their public sector debt and inform the Mayor and City Attorney of their dire situation.
A substantial $2.7 million was owed to the city by the Parks Alliance, with Ginsburg prioritizing repayment for the India Basin project, a partnership involving the Rec and Parks Department and various organizations.
He emphasized the need for reassurances regarding $869,000 in Rec and Park accounts, fearing that the troubling financial state of the Parks Alliance would soon be public knowledge.
These concerns were validated when, in the weeks following Ginsburg’s meeting, the San Francisco Chronicle published revealing emails indicating that at least $3.8 million in restricted funds had been misallocated.
The board chair referred to the situation as a “dumpster fire,” a metaphor that resonated with the public’s understanding of mismanagement.
By June 2024, the Parks Alliance had imploded under the weight of its financial missteps.
Ginsburg was determined to protect the interests of the Recreation and Parks Department, as outlined in his remarks to the Parks Alliance board.
However, he did not share vital information with other stakeholders who could have mitigated the financial fallout.
This lack of communication proved disastrous for the Port of San Francisco, which was left to recover $1.54 million that it expected to receive from the Parks Alliance for construction at Crane Cove Park.
A simple phone call from either Ginsburg or former Parks Alliance CEO Drew Becher could have spared the Port this financial loss, but neither communicated the brewing storm.
Interestingly, Ginsburg had learned of the Parks Alliance’s precarious financial state back in June 2023, while Becher admitted to his own realization about the misuse of funds by May.
Despite this knowledge, the two officials failed to notify the Port, which had been counting on those funds for its construction contract.
In July 2024, with the Parks Alliance dissolved and unable to fulfill its financial commitments, the Port found itself in a difficult position.
Supervisor Connie Chan had previously warned the Port to avoid the Parks Alliance, suggesting they deal directly with donors rather than relying on a middleman who took a cut of the funds.
Had the Port acted on this advice, it might have avoided the financial pitfalls that ensued.
In the end, the Parks Alliance’s history of reliability was shattered when it failed to deliver on promised contributions.
As Ginsburg and Becher stayed silent about the financial realities, community groups who depended on the Parks Alliance for fiscal sponsorship were also caught off guard.
These groups lost approximately $2 million as the nonprofit vanished, leaving their members with fewer resources to complete their planned projects.
For workers among these community groups, the impact was dire: lost jobs, health coverage, and financial security constituted a significant blow.
In the wake of the Parks Alliance’s crumbling, the Recreation and Parks Department attempted to redirect blame towards the defunct organization.
The Department circulated a list of talking points for community groups to present to the Board of Supervisors, aiming to frame their message against the Parks Alliance.
Significantly, Ginsburg’s earlier comments did not mention the community groups, indicating a level of disregard for their losses as he prioritized the financial situation of his own department.
The shifting dynamics surrounding the Parks Alliance raise fundamental questions about transparency and accountability.
If Ginsburg had shared pertinent information sooner, many of those affected might have acted differently.
However, an atmosphere of reticence persisted among Parks Alliance leaders, who were apprehensive that candid discussions about the nonprofit’s dire state would discourage potential donors.
Ultimately, this reluctance did not shield the organization from its cataclysmic end.
What remains is a hard lesson about fiscal responsibility and the need for honest communication among partners in public service and community engagement.
The Parks Alliance’s collapse serves as a reminder that overlooking transparency can have grave consequences, not just for organizations but for the communities they serve.
As San Francisco reflects on this mismanaged situation, it’s clear that the lessons learned could help guide the structure and governance of future partnerships in public service.
image source from：missionlocal
