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HomeRise shutters after audit findings and abuse allegations

HomeRise shutters after audit findings and abuse allegations

Rule Changes San Francisco, CA local

Latest casualty in San Francisco's two-year nonprofit scandal wave

Yesterday: HomeRise announces shutdown

Overview

Updated Yesterday

HomeRise, one of San Francisco's largest providers of homeless services, is shutting down. The nonprofit made the call two years after the city auditor found fiscal mismanagement and months after an employee was accused of sexually abusing clients.

HomeRise is the latest in a wave of city-funded nonprofits hit by scandal since September 2024. The closures stretch San Francisco's outsourced homeless-services system, which depends on these groups.

Why it matters

San Francisco routes hundreds of millions in homeless-services contracts through nonprofits; every closure shrinks the safety net for people who rely on it.

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Key Indicators

4
City-funded nonprofits hit by scandal since Sept 2024
HomeRise, Collective Impact, Providence Foundation, and J&J Community Resource Center.
$105K
Providence Foundation's alleged fake invoices
City attorney says the group billed for paint and lock work that never occurred.
2 yrs
Time between HomeRise audit and closure
The city auditor found mismanagement in 2024; HomeRise announced shutdown in October 2026.

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People Involved

Organizations Involved

Timeline

September 2024 October 2026

9 events Latest: Yesterday
Tap a bar to jump to that date
  1. HomeRise announces shutdown

    Latest Closure

    One of San Francisco's largest homeless services providers says it is calling it quits after the audit findings and abuse allegations.

  2. HomeRise employee accused of abuse

    Accusation

    An employee of HomeRise is accused of sexually abusing clients, months before the nonprofit announces closure.

  3. Providence Foundation barred over fake invoices

    Penalty

    City attorney bars the nonprofit from new funding, alleging more than $105,000 in invoices for work never done.

  4. City attorney blocks Collective Impact

    Penalty

    David Chiu's office suspends Collective Impact from receiving public money over allegations tied to Sheryl Davis.

  5. J&J Community Resource Center barred

    Penalty

    City attorney bars the nonprofit from funding after alleging it swindled at least $100,000 in reimbursements for booze, cigars, and motorcycles.

  6. City auditor finds HomeRise mismanagement

    Audit

    Auditor finds evidence of fiscal mismanagement at HomeRise, one of the city's largest homeless services providers.

  7. Sheryl Davis resigns

    Resignation

    The Human Rights Commission executive director steps down after her ties to Collective Impact become public.

  8. Report exposes Collective Impact ties to city official

    Report

    The Standard reports Sheryl Davis awarded $1.5 million in contracts to Collective Impact while sharing a home with its director.

Scenarios

1

HomeRise winds down, city reassigns services to other providers

Likely Resolves by Q2 2027

Discussed by: SFist and local media

The city shifts HomeRise's contracts and clients to other nonprofits. The wind-down completes with minimal disruption, and HomeRise's programs and properties transfer to new operators.

2

Another city-funded nonprofit faces debarment

Possible Resolves by Q2 2027

Discussed by: City Attorney David Chiu's office

The scandal wave continues. The city attorney announces debarment or suspension of at least one more major nonprofit, citing fraud or mismanagement, following the pattern set by Providence Foundation and J&J Community Resource Center.

3

City overhauls nonprofit contracting rules

Possible Resolves by End of 2027

Discussed by: Board of Supervisors, Mayor's office

Pressure from the scandal wave pushes the city to pass legislation reforming how it contracts with and monitors nonprofits. The reform adds oversight, financial reporting, and conflict-of-interest rules.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

1991-1995

United Way of America (1991)

The United Way was America's most trusted charity. Its president William Aramony spent lavishly on himself, steering funds to a for-profit spinoff and a girlfriend. A Washington Post investigation in 1992 exposed the spending, and Aramony was convicted of fraud in 1995.

Then

Aramony was sentenced to seven years in prison. Donations initially dropped, and the charity overhauled its leadership.

Now

The scandal prompted tighter financial controls and board oversight across the nonprofit sector.

Why this matters now

The United Way case shows how a trusted nonprofit can fail on executive misconduct, and how scandal forces sector-wide accountability reform. The San Francisco nonprofits face the same dynamic.

January 2016

Wounded Warrior Project (2016)

The charity, one of America's largest veterans groups with roughly $300 million in annual revenue, faced reports that its executives spent lavishly on retreats, hotels, and salaries while directing a small share of donations to veterans.

Then

Its chief executive and chief operating officer were fired. Donations fell sharply before recovering under new leadership.

Now

The group rebuilt with tighter oversight and more transparent allocation of funds, but donor trust took years to recover.

Why this matters now

The Wounded Warrior Project shows how disclosure of financial excess forces leadership change and governance reform at a large, beloved nonprofit, paralleling the pressure on San Francisco's nonprofits.

Sources

(4)

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