What the audit found
In 2019, Oakland’s city auditor substantiated failures involving office space, city authorization and transparency. Employees of partner organizations used city space without finalized leases, insurance or rent.
Those findings concern how the City supported a nonprofit closely tied to the Mayor’s Office. The audit made no findings about Mia Bonta, who became CEO as the investigation began.
What the auditor documented
The auditor’s investigation began in July 2019 after whistleblower reports. In August 2019, City Council President Rebecca Kaplan also asked for an audit of the Mayor’s Office support for Oakland Promise; Mayor Libby Schaaf’s spokesman called the request a “petty political vendetta masquerading as an audit.”
The auditor found the City contributed more than $4 million to Oakland Promise, including in-kind support. That included about $1.5 million in authorized grants from the Oakland Fund for Children and Youth and $704,374 from the City’s general fund for a Director of Education position in the Mayor’s Office. The report said plainly: “The Mayor’s Director of Education works for Oakland Promise.”
Employees of a partner organization occupied space on the 11th floor of City Hall for about two years without a lease or formal agreement, and the position was assigned without City Council authorization. The auditor said the City Administration “did not follow the Municipal Code” and made five recommendations on facility use and agreements for non-City workers.
The auditor also found the City’s financial contributions “were neither prohibited nor irregular,” though complex and hard to follow. The report attributes the problems to the Mayor’s Office and does not mention Mia Bonta.
Fiscal sponsorship and the later organization
City meeting materials describe the Brilliant Baby program moving from fiscal sponsorship by Oakland Public Education Fund to East Bay College Fund, doing business as Oakland Promise.
That history matters when evaluating claims about the program’s early tax status or an EIN that appears under different names.
Mia Bonta’s role
Mia Bonta joined Oakland Promise in May 2019 and was named chief executive in July 2019, succeeding David Silver, who moved to Mayor Schaaf’s staff. She led the organization until she won a special election to the Assembly in August 2021.
The organization grew quickly in that period. Its IRS filings show revenue of about $20.8 million for the fiscal year ending June 2020, almost all of it contributions, and net assets rising from $14.8 million in 2019 to $65.9 million in 2021.
In January 2020, Rob Bonta gave $4,500 from his campaign account to Oakland Promise and solicited $20,000 for it, obtaining letters that the money would not pay his wife’s salary or benefits.
Audit, tax filings and lawsuit: three different questions
The audit asks how city resources were authorized and overseen. A nonprofit tax return reports finances. A court ruling decides the issues in front of it. All three involve the same organization, but they answer different questions.
The audit’s findings, the tax returns and the court ruling each need to be read on their own terms.
What happened to the federal lawsuit
A federal lawsuit, Hazzard v. Schaaf, raised tax-fraud allegations. It was dismissed, and on December 18, 2023, the Ninth Circuit affirmed the dismissal. No court found that fraud occurred.
The parties in Hazzard v. Schaaf
The suit was brought in the U.S. District Court for the Northern District of California by Gene Hazzard, an Oakland activist who raised concerns about Oakland Promise in 2019. Defendants included former Mayor Schaaf, Mia Bonta as former Oakland Promise CEO and Rob Bonta. The Ninth Circuit upheld the dismissal of the federal claims and the district court’s decision not to hear the state-law claims.
Reading the compensation entries
Oakland Promise’s IRS filings list Mia Bonta’s compensation as CEO at $195,000 for the fiscal year ending June 2020, and $160,625 as former CEO on the FY2022 return, which also lists $147,000 for Sandra Ernst. Any claim about pay should name the person, role, return and reporting period.
Responses and open questions
No public response from Mia Bonta to the auditor’s findings has been found.
Every original and amended tax return, the full transition file and follow-up on each audit recommendation would complete the picture.
Questions and answers
What did Oakland’s auditor find?
That the city gave Oakland Promise more than $4 million in cash and in-kind support, including a mayoral staff position that worked for the nonprofit and office space provided without a lease or City Council authorization.
Link to this answerWhy does fiscal sponsorship matter?
The city describes an earlier, sponsored program and a later operator. Any comparison of names or EINs has to account for that history.
Link to this answerDid the cited appeal establish fraud?
No. The courts dismissed the lawsuit without finding fraud. The dismissal did not address the auditor’s findings about City Hall’s arrangements with Oakland Promise.
Link to this answerWhat was Mia Bonta paid?
$195,000 as CEO for the fiscal year ending June 2020, according to Oakland Promise’s IRS filings.
Link to this answerWere all audit recommendations implemented?
Not confirmed. That would take city follow-up records for each recommendation.
Link to this answerWhat did the audit find about City Hall’s support for Oakland Promise?
That the Mayor’s Office gave the nonprofit City Hall office space without a lease and a city-funded staff position that worked for Oakland Promise, without City Council authorization.
Link to this answerSources for this page
- Oakland Promise investigation
Oakland City Auditor · November 19, 2019
Printed page 4 summarizes substantiated findings about city authorization, office space and transparency.
- Oakland Fund for Children and Youth meeting materials
City of Oakland · June 3, 2020
Explains the Brilliant Baby program’s transition from fiscal sponsorship to East Bay College Fund, doing business as Oakland Promise.
- Hazzard v. Schaaf, No. 23-15097
U.S. Court of Appeals for the Ninth Circuit · December 18, 2023
Memorandum affirming dismissal. It is not a finding that the alleged tax fraud occurred, or an audit of all returns.
- Oakland Promise FY2022 Form 990
IRS filing, hosted by ProPublica · Filed April 3, 2023
Direct filing viewer. Compensation should be read with the return’s reporting periods.
- Oakland Promise filing archive
ProPublica Nonprofit Explorer · Reviewed October 19, 2026
Extracted IRS data and links to returns. A reporting index is distinct from an IRS determination.
- Community raises questions over city funds and staff given to Oakland Promise
Post News Group · September 5, 2019
Kaplan’s audit request and community concerns.
- Oakland’s Promise kept or not?
East Bay Express · September 17, 2019
Mia Bonta’s hiring and the Mayor’s Office response.
- For California lawmakers, charity can begin at home
CalMatters · February 19, 2020
Rob Bonta’s contributions and solicitations for Oakland Promise.