Embroiled San Francisco Nonprofit Gets Green Light to Continue Work With City

A San Francisco nonprofit accused of misconduct may continue to do business with the city, after a ruling on Wednesday in a case brought against the organization.

Collective Impact, a Western Addition-based nonprofit that grew from an after-school program to a broad community services provider, came under fire in 2024 due to its ties to Sheryl Davis, a former Human Rights Commission department head, who is currently facing a criminal investigation by the district attorney for allegedly mishandling public funds.

The administrative ruling on Wednesday by Officer Andrea McGary did not find the “preponderance of evidence” required to prove willful misconduct by Collective Impact, city documents read. The decision comes after city officials suspended the nonprofit from receiving city funding earlier this year.

The ruling lifts that suspension; however, attorneys for Collective Impact say public funding has not yet resumed for the nonprofit.

The City Attorney’s office will appeal the most recent ruling, according to spokesperson Jen Kwart.

“It is absurd anyone would think Collective Impact is a responsible contractor that can be trusted with public money when we have blatant evidence that Collective Impact paid for a city official’s personal endeavors and first-class travel, submitted false claims and improperly spent taxpayer dollars meant to go to children,” Kwart said in a statement.

In 2024, news outlets reported that Davis approved funding $1.5 million in contracts to Collective Impact, which James Spingola runs. It was revealed that Davis and Spingola share a home and car together, drawing concerns from public officials over conflicts of interest and misspending.

Attorneys defending Collective Impact have denied allegations that the organization aided Davis in misappropriation of city funds for things like a luxury hotel stay, first-class airfare and alcohol.

“This is what happens when an investigation starts with a conclusion and works backwards. This suggests two Black people who live together can’t act in good faith, and that’s untrue,” said Lauren Kramer Sujeeth, who is representing Collective Impact. “An awful lot of taxpayer money was spent trying to prove that false premise.”

Board members for Collective Impact celebrated the ruling on Wednesday, calling the accusations against the organization “speculative” and “unsupported by evidence.”

“This decision affirms what we have always known, that our team is guided by purpose, accountability, and an unwavering commitment to the children and families we serve,” reads a statement from the board. “With this outcome, we can once again focus on what matters most: empowering San Francisco’s low-income youth and families to reach their full potential and to meet the challenges facing their communities head-on.”

The City Attorney’s office had asserted that the nonprofit should be “debarred” for allegedly participating in bribes and mishandling funds that should have gone to children, workforce programs and other community services.

“Not only was Collective Impact’s past misuse of city funds disqualifying, but its current leadership has taken no actions to ensure that city funds will not be misused again,” Kwart added. “This was a bizarre hearing process that led to an even more bizarre decision with no reasoning or analysis.”

Davis resigned from the Human Rights Commission after the scandal-plagued former Mayor London Breed’s Dream Keeper Initiative, which operated under the commission and funded grants to the city’s Black community.

Spingola has also left Collective Impact, and the organization is moving forward with a transition plan, according to its spokesperson.

“We remain steadfast in our mission to build a more equitable San Francisco for all,” the statement from Collective Impact’s board reads, “and look forward to ongoing collaboration with the city, its agencies, and the community.”