Collective Impact, a nonprofit organization based in San Francisco’s Western Addition, is facing the possibility of closure this fall after being accused of bribing a city department head. This comes as city officials seek to terminate its funding for the next five years, according to attorneys representing the nonprofit.
The controversy erupted when media reports revealed that Collective Impact’s executive director, James Spingola, had been cohabiting with Sheryl Davis, the now-former head of the San Francisco Human Rights Commission (HRC). Under Davis’s leadership, the commission awarded millions of dollars in grants to Collective Impact over the past five years.
As a result of the scandal, Davis resigned abruptly in September of the previous year, leading to a loss of confidence in Mayor London Breed’s Dream Keeper Initiative—an effort aimed at funding programs that benefit San Francisco’s Black community.
City Attorney David Chiu’s office has filed new court documents revealing further details surrounding the alleged corruption. These documents precede an administrative hearing where Collective Impact’s attorneys intend to argue for the restoration of the nonprofit’s eligibility for city funding. Meanwhile, Chiu’s office is pushing to extend the funding ban for an additional five years.
If successful, this extension could spell the end for Collective Impact. Attorneys for the nonprofit indicated that without city funding, they would likely be forced to close all programs by October.
In the recent filings from Chiu’s office, new allegations emerged that suggest a deeply unethical relationship between Davis and Collective Impact. Chiu claims that the nonprofit repeatedly violated various state laws, the San Francisco Municipal Code, and the stipulations of its grants. Notably, the filings allege that Collective Impact misappropriated public funds to provide personal gifts to both Davis and her son, while she made grant funding decisions that favored the organization.
Chiu is adamant that Collective Impact is an irresponsible contractor deserving of severe penalties, stating, “Collective Impact is an irresponsible contractor that should be debarred for the maximum period of time.”
Debarment proceedings initiated by Chiu’s office in March focus on the claim that Spingola failed to disclose his personal relationship with Davis while the nonprofit bribed her to secure city funds. Before assuming leadership of the HRC in 2016, Davis served as Collective Impact’s executive director from 2011 to 2016. Chiu noted that she continued to sign official documents for the nonprofit even after leaving it.
Notably, court filings reveal that Davis remains a signatory on Collective Impact’s bank accounts and retains a corporate credit card in her name.
Over a five-year period, both Davis and Spingola are accused of signing six grant agreements worth more than $6 million on behalf of the HRC and Collective Impact respectively, all without disclosing their personal relationship. Furthermore, the nonprofit allegedly covered over $19,000 for Davis’s son’s graduate school tuition, $18,400 for personal promotional work, and significant expenses related to luxury travel experiences.
Chiu’s office also alleges that Collective Impact improperly billed more than $20,000 in expenses associated with a trip taken by Davis and Spingola to a conference in Martha’s Vineyard, where she was a keynote speaker. The grant terms explicitly prohibit such expenditures for conferences and travel.
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