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The purpose of this document is to provide background and context regarding the issues confronting Black Community Based Nonprofits (CBO) in San Francisco.  We want readers to leave with a deeper understanding of the complex challenges and plausible solutions. The information and research were culled from public and private resources by the San Francisco Black Community Restoration Institute, which is dedicated to improving the quality of life and well-being of Black communities in San Francisco through community engagement, relevant research, commerce promotion, policy development and service interventions.

This Position Paper is confidential and designed for participants attending “Black Community Nonprofits: Navigating a Complex Environment.”

Throughout the year 2023 and into 2024 there has been a steady stream of reports in the news media of San Francisco highlighting a wide range of problems with local nonprofits ranging from financial mismanagement and poor management oversight, to unsatisfactory and inadequate provision of service to clients in need of help in vital areas such as housing, health, employment, education, youth, and families, etc.. Increasingly, the spotlight has been intensifying on nonprofits led by African Americans who are providing services to Black and other citizens in need. In recent months, a half dozen Black-led organizations have come under public indictment, and another half dozen have unceremoniously lost funding under a cloud of suspicion.

Unfortunately, some prominent Black political leaders and department heads have been caught in a web of scandal. Some, convicted of financial fraud and other legal violations, are serving time in prison. It has been reported that investigatory organizations, like the Federal Bureau of Investigation (FBI) are focused on unearthing illegal activity and official corruption in San Francisco. Light is being shined on nonprofit organizations’ activities at a more intense level than may have been the case in the past.

At this time, San Francisco continues to have Black people in key positions of leadership, including the Mayor, Chief of Police and District Attorney. The Board of Supervisors also has a Black member and former Board President, Shaman Walton, who has followed many members from the past. Both the mayor and supervisors were groomed in Black CBOs. However, the leadership pipeline is shrinking and has become corrosive. 

The deeper institutional strength of San Francisco’s Black community is being weakened by the steady drumbeat of scandal.

The situation is likely to be compounded by other challenges. Those challenges include: the shrinking Black population, the large inequality of income between the Black community and that of the majority, the shrinking budget of the City to fund human services provided by CBOs, and the uncertain impact of advancing technology on jobs and wages. The path forward will require innovation in how services are provided, increases in efficiency and effectiveness from fewer organizations, and demonstrated capability to meet performance requirements for public accountability.

(Excerpted from position paper. More to be revealed at workshop.)