Rec & Park leaders say Parks Alliance breached trust; investigations underway

At a public meeting of the San Francisco Recreation and Park Commission in City Hall Room 400, General Manager Phil Ginsberg and several commissioners addressed allegations that the San Francisco Parks Alliance (SFPA) mishandled donor funds and violated fiduciary responsibilities.

The department said it is cooperating with multiple inquiries. Ginsberg said city investigators — including the controller and the city attorney — are reviewing the matter and that the district attorney’s office is conducting a criminal investigation. “I am furious and, really disappointed and, you know, my heart breaks,” Ginsberg told the commission, adding that the Parks Alliance “broke community trust” and “violated in my view their fiduciary responsibilities.”

The matter matters because the Parks Alliance had acted as a fiscal sponsor for dozens of small “friends of” park groups and held money earmarked for specific local projects. Ginsberg told the commission the department is “a victim just like the other community partners” and that missing funds could be “around a million dollars, more or less” that had been given by donors for particular purposes and were commingled with unrestricted funds.

Commissioners and public speakers described community-level impacts. Commissioner Mazzola said the commission was not involved in the Alliance’s finances and emphasized that commissioners were not notified about SFPA’s internal operations: “I don't want anyone coming to me and saying, 'Why didn't you know?' Because it's not my fault,” she said. Commissioner Louie described feeling “deflated” and “angry,” saying the nonprofit “stole the money from donors.”

Public commenters and community leaders who use fiscal sponsorship services urged the department to prioritize a smooth transition so ongoing projects and vendors are paid. Matthew Blaine, chair of SF Urban Riders and a member of a newly formed Community Partner Network Advisory Committee, said his group and dozens of others want “to ensure that the function that the Parks Alliance provided continues going,” noting the Alliance had also held insurance and administrative arrangements that community groups rely on.

Ginsberg and commissioners said they will work with the controller and city attorney’s offices and keep the commission updated. The commission announced it expects audits and investigations to proceed; the city controller and city attorney have subpoena powers, Ginsberg said. Commissioners expressed support for accountability and for establishing more transparent and robust fiscal-sponsorship arrangements in the future.

Members of the commission and department framed the episode as a reminder of the importance of accountable philanthropic partnerships. Ginsberg and others named several nonprofit partners they consider effective and trustworthy — such as the Trust for Public Land and Gardens of Golden Gate Park — and said the department will seek new partners to replace the Alliance’s role once investigations and remedial steps are completed.

The commission did not take formal action on the matter during the public portion of the meeting; staff said legal and investigative work is ongoing and that follow-up reports will be provided to the commission as information becomes available.

Community groups and donors who believe they were harmed continue to seek information and possible restitution; the commission asked staff to provide frequent updates as the controller and city attorney review records.