Police Protective Fund Scam

As I write this in the holiday season of 2009 the phone calls keep coming because many government efforts to spread the word about this scam charity fail to prevent kind-hearted American from giving their hard-earned money to it. Odds are very high that you will get calls from the Police Protective Fund and get a well crafted sales pitch from someone masquerading as a police officer.

Legally, these calls cannot be stopped the way other marketing calls can under federal and state do-not-call laws because non-profit groups are exempt. But having the legal status as a non-profit charity does not mean the group is legitimate. To the contrary there are a multitude of scam charities that collect many millions of dollars but use extremely little of the money for truly worthy causes. These bogus groups are really businesses run to provide salaries and other perks for their leaders and workers. They use the most sophisticated marketing tactics to trick gullible people into giving money.

As soon as this published some people in the employ directly or indirectly of the Police Protective Fund will surely post positive comments here. Don't believe any of them. Here are some facts you should remember when you get one of the millions of phone calls from this group:

In June, 2008 it was reported that the Missouri Attorney General was successful in making the PPF pay $450,000 in a consent judgment to the state because they had refused to stop telemarketing calls that harassed consumers wanted stopped. "Today's significant judgment should serve as a warning to all who engage in repetitive telemarketing - such tactics are not going to be tolerated in Missouri," Attorney General Nixon said. "Regardless of the stated cause, there is never any place for calling consumers repeatedly against their stated wishes to solicit donations." As in many other states, Missourians had complained that PPF made repeated phone calls to them long after they were asked not to, often employing rude and intimidating tactics in order to obtain donations. Nixon's office worked closely with several St. Louis area police departments as well as other departments from around the state after those agencies forwarded complaints regarding PPF to the Attorney General.

"Any time fundraisers purport to be raising money for law enforcement, it's vital that they follow the laws regarding solicitations so that legitimate law enforcement fundraising efforts are not hurt," said Sheldon Lineback, executive director of the Missouri Police Chiefs Association, which does not use telemarketing. "We appreciate the efforts of Attorney General Nixon to help legitimate Missouri law enforcement organizations."

About the only truly legitimate and useful program of this group is providing death benefits to families of police officers killed in the line of duty. But stay focused on these facts: In 2006, Police Protective Fund raised $5,938,902 in donations yet awarded only $37,000 in death benefits. In 2007, Police Protective Fund raised a remarkable $6,881,915 in donations yet awarded just $50,000 in death benefits. Clearly, nearly all of the money raised goes towards their fundraising expenses, high salaries for their staff as well as all kinds of benefits to them.

As in Missouri, in Maryland, then Montgomery County Executive Douglas M. Duncan warned consumers about an out-of-state police charity scam operating in Montgomery County that spends the vast majority of the money it collects to pay the salaries of its staff and its fundraising expenses. Duncan noted that there is no evidence that law enforcement agencies in Montgomery County benefit from the funds raised from the group and urged the State of Maryland to open an investigation into this matter and step up its enforcement of these shady operations. Montgomery County's Office of Consumer Protection (OCP) uncovered the scam and is conducting its own investigation.

"It is shameful that this unscrupulous group is trying to take advantage of our residents," said Duncan. "Our community is always willing to help support legitimate public safety charitable organizations, but we will not stand idly by and have folks ripped off by this out-of-state sham outfit." At that time it was noted that the group used 91 percent of all donations to pay its management and general expenses and fundraising costs in 2004.

Charitable guidelines provide that a charity should at maximum spend no more than 35 percent of its donations on fundraising expenses. The Police Protective Fund's high administrative costs raised red flags for Montgomery County Consumer Protection officials and prompted the warning by Duncan.

The highly regard Better Business Bureau's Wise Giving Alliance program reports that despite requests this organization either has not responded to Alliance requests for information or has declined to be evaluated in relation to the Alliance's Standards for Charity Accountability. The BBB Wise Giving Alliance reports on national charities and determines if they meet 20 voluntary standards on matters such as charity finances, appeals, and governance. The Alliance does not evaluate the worthiness of the charitable program. True, participation in the Alliance's charity review efforts is voluntary, but the Alliance believes that failure to participate may demonstrate a lack of commitment to transparency. Without the requested information, the Alliance cannot determine if this charity adheres to the Standards for Charity Accountability. A charity's willing disclosure of information beyond that typically included in its financial statements and government filings is, in the Alliance's view, an expression of openness that strengthens public trust in the charitable sector.

All this explains why another highly respected group Charity Navigator has given PPF zero stars as a charity, its lowest rating. Many people have posted negative comments about this group on the Charity Navigator website.

As others have done, I spent considerable time reading the latest tax return of PPF that can be found on its website. Anyone who wants to spend the time doing this will inevitably conclude that this is a scam operation run for the financial benefit of at least eight people and many associated groups and companies and contractors working on their behalf. Do not let yourself fall for the high-pressure solicitation phone calls. Giving money to this phony charity is a sheer waste of money.