San Francisco Controller Flags 'Serious' Financial Issues at Urban Alchemy Amid $60M+ City Funding

San Francisco, CA – Urban Alchemy, a nonprofit organization that has received over $60 million in funding from San Francisco city entities, is facing renewed scrutiny following allegations of "fraud and corruption." A recent tweet by Kane 謝凱堯 stated, > "The nonprofit that @sfgov and @sfbos have given over $60M to, @UrbanAlchemyUA , turns out to be just fraud and corruption." These claims align with a recent audit from the San Francisco Controller’s Office, which has identified "serious" financial issues within the organization.

The Controller's Office, responsible for auditing city finances, issued a letter on August 21 flagging Urban Alchemy for failing to properly track employee output for two consecutive years. The audit, which reviewed financial records from 2023 to 2024, indicated significant concerns about the nonprofit's financial health. These findings have intensified questions regarding the oversight of public funds allocated to the organization.

Urban Alchemy, known for employing formerly incarcerated individuals as "street ambassadors," has rapidly expanded its operations, securing over $62 million in contracts primarily from San Francisco and other cities. The organization's mission is to address street-level issues, homelessness, and public safety, with its practitioners wearing distinctive green-and-black vests. Its growth has been a subject of both praise and controversy since its inception.

The nonprofit has faced numerous allegations and lawsuits, including claims of civil rights violations, physical and sexual harassment, and wage theft. Reports have also linked Urban Alchemy to former San Francisco Public Works Director Mohammed Nuru, who was jailed on corruption charges, raising questions about no-bid contracts. In Sausalito, a lawsuit alleging RICO violations accused Urban Alchemy employees of drug trafficking and sexual assault at a city-sanctioned homeless encampment.

Urban Alchemy has consistently denied these allegations, with representatives stating that the claims are unfounded. The organization maintains that its hiring model, which leverages the lived experiences of formerly incarcerated individuals, equips them with unique empathy and situational awareness for their roles. Despite its defenses, the recent findings from the Controller's Office add significant weight to ongoing concerns about its operations and financial accountability.