POA Fundraising Company Renews Registration with Attorney General

Today, South Pasadena Police Officers' Association (POA) Vice President Cpl. Tom Jacobs confirmed that the South Pasadena POA has utilized the for-profit fundraising company New Equity Productions (NEP) to conduct its direct mail solicitation campaign since 2005. A Patch investigation .

On Dec. 7, the direct mail company renewed its status with the Attorney General as a registered commercial fundraiser. The state Attorney General's office mailed a letter to New Equity Productions informing them of their delinquent status on Nov. 19.

"We have had a relationship with [New Equity] and done business with them for a number of years," South Pasadena POA's Cpl. Jacobs said. After finding out the fundraising company had renewed its registration, Jacobs said the POA would continue to use the company's services.

"We are not dissuaded," he said. "Of course it is a concern. As with any business, it always takes monitoring." But, due to the convenience factor of farming out the solicitation direct mail work to a private company, Jacobs said the POA would maintain its business contract with New Equity.

Kate Gibbs of the Attorney General's office notified Patch of the newly completed registration on Wednesday, Dec. 7.

"They are in compliance with the registration requirements," said Gibbs in an email. "If you look them up on our website… you'll see they are 'Registered' now, with an expiration date of January 15, 2011."

According to Cpl. Jacobs, funds raised through the solicitation drive and other fundraisers support South Pasadena police officers and charitable organizations, including Mothers Against Drunk Driving (M.A.D.D.) and Relay for Life. He said some funds go towards families of special needs children, families of officers who died. Funds also support the "aid and betterment of the officers environment" and can be used to purchase things like television sets for officers who have to work extended shifts at the police department. 

In general, reports filed by for-profit companies who solicit donations on behalf of unions and nonprofit organizations reveal that "only about one-third of the total dollars collected by the commercial fundraisers in California actually go to charities, with about 30 percent of the campaigns netting nonprofits 15 percent or less of the total revenue," according to the state.

In fact, a section of the DOJ website dealing with what it terms "commercial fundraising" companies maintains that historical data show these companies return, on average, less than 50 percent of the contributions to the charity.

Cpl. Jacobs would not disclose the amount the South Pasadena POA pays New Equity to do fundraising work. He also did not state what percentage of funds raised are kept by New Equity.

New Equity also handles fundraising efforts for police unions in neighboring cities, including Sierra Madre, Monrovia, and Arcadia.

Following the discovery of the lapsed registration, Sierra Madre POA President Kenneth Berry sent a letter to Sierra Madre Patch detailing the union's reaction to the article.

"With the disclosure by the Sierra Madre Patch that the New Equity Productions was not currently properly registered with the California State Attorney General, the Association has initiated an inquiry with New Equity as to the steps they are taking to ensure compliance with all California laws pertaining to charitable solicitation," said Berry in the letter.

Sgt. Berry was unavailable for further comment Wednesday.

Hours after the Monrovia Police Officers' Association discovered that New Equity's registration had lapsed, the Monrovia POA announced it would stop doing business with the company until it complied with the law.

In an , Dieter Dammeier, an attorney for the MPOA, said he was unaware that the company was operating in violation of the law.

"I'm kind of surprised that they wouldn't have whatever is required, if in fact that's the case," Dammeier said. "We'll probably have to put something out to them making sure that the police associations aren't using them until they become compliant with the Attorney General's request."

Dammeier said Newport Beach-based New Equity works on behalf of many police unions and other charitable organizations. He estimated that the company keeps between 50 and 75 percent of the money they raise on behalf of the MPOA.

For its part, the Sierra Madre Police Officers Association has been unable to cite specific examples of what charitable activities will be funded by Sierra Madre residents' donations.

In his letter, Berry also addressed concerns about the cut of charitable donations taken by the for-profit company. Sgt. Berry's letter is attached to this article.

"The Association is also reviewing contracts with New Equity and will be asking for an updated and complete accounting of all funds raised in behalf of the Sierra Madre Police Association," the letter said.

Berry also said that the SMPOA would be consulting with the association's attorneys "to ensure that we are acting in the best interests of the Community, within the parameters of California State law and for the benefit of our members."

Representatives from New Equity Productions did not return calls seeking comment.

For previous coverage of this story, read .