SF Parks Alliance Funding Paused Amid Financial Scandal

The San Francisco Parks Alliance, a vital partner in improving city parks, is under intense scrutiny and a criminal probe after revelations it misspent millions. Now the Lurie administration has paused all funding to the organization, pending an audit.

The Facts

About $290,000 in funding to the Parks Alliance has been frozen by the Lurie administration pending the results of an audit of the organization's spending practices. This follows reports that the nonprofit Parks Alliance allegedly misused $3.8 million in restricted funds (using them to pay for operational expenses rather than their intended projects), racked up unpaid debts and grants with partner organizations, and awarded bonuses to top executives despite a $4.6 million budget deficit.

The Context

The Parks Alliance, which manages funds for over 80 neighborhood groups and park projects, has been a key player for over 50 years in enhancing San Francisco's public spaces. They raise private funds to help pay for park improvements and events, though parks are primarily funded by the city.

Recent revelations have exposed significant financial mismanagement within the nonprofit. The issues primarily involve the misuse of "restricted funds," or money donated and earmarked for a specific purpose, not for general use by the organization. The misuse includes spending $1.9 million of a $3M donations from the Baker Street Foundation intended for Crane Cove Park. Restricted funds are legally required to be used for their intended purpose, and the Parks Alliance's alleged misuse of these funds has raised the prospect of criminal charges.

The nonprofit's new CEO, Robert Ogilvie, has acknowledged past errors and says he is working to resolve the debt. The city attorney and controller are now conducting a thorough audit.

The GrowSF Take

While we strongly support the mission and essential work of the Parks Alliance, that comes with an expectation that donor funds and public resources will have rigorous financial stewardship. We hope the organization can recover from this scandal, make donors whole, and continue its important work in our parks.