How Revenue is Spent at the International Union of Police Association (IUPA) (2020)

The International Union of Police Associations AFL-CIO (IUPA) is a non-profit, tax-exempt 501 (c) (5) – a labor union –  whose mission is to be “the voice of law enforcement officers.”  With an estimated 20,000 members, IUPA is the largest police union in the AFL-CIO, and is based in Sarasota, Florida.

There are 15 independent voting members of the governing body, although 18 are listed on the Form 990 (2020) which appears to be due to timing differences.  17 of the 18 (94%) are male while 1 (6%) is a female.

Donors and potential donors to the IUPA should be aware of the following information (which was taken from the Form 990’s submitted by IUPA to the IRS):

1. In 2019, IUPA raised nearly $12 million, of which $3.7 million came from memberships dues. $8 million came from contributions which were primarily phone solicitation and telemarketing fundraisers who raised $7.9 million and were compensated $7 million, netting IUPA about $900,000. In other words, for every $1 raised by the phone solicitation fundraisers, only 11 cents went to IUPA because the phone solicitors kept 89 cents of every $1 or $89 of every $100 raised.
2. In 2020, IUPA raised $12.6 million, of which $4.1 million came from membership dues. $8.5 million came from contributions which were primarily phone solicitation and telemarketing fundraisers who were compensated $7.4 million.  In other words, for every $1 raised by the fundraisers, only 13 cents went to IUPA because the fundraisers kept/received 87 cents of every $1 raised.  
3. IUPA is required to provide detailed fundraising information on the Form 990, Schedule G.  On Part I, a list of the 10 most highly compensated fundraising entities/people must be listed.  IUPA lists 7 firms who collectively raised $1.6 million but retained $1.4 million, netting IUPA $200,000. However, IUPA reports they paid $7.4 million to professional fundraisers on Form 990, Part IX, Statement of Functional Expenses, Line 11E.  So, how is it that IUPA paid $7.4 million to fundraisers yet only lists fundraising fees of $1.4 million on another schedule?
4. In 2019, IUPA bought a 17,400 square foot office building with intentions of using 10,000 square feet for IUPA and leasing out the remaining space (according to the Tampa Bay News).  The purchase price was $2.6 million (IUPA put down $500,000 and acquired a $2.1 million mortgage).  It is unclear if IUPA still has a call center operating out of this building because a roster of the tenants is not available on-line.  In 2019, a “business” called the International Union of Police Associations Call Center operated out of the same business address but is not listed on the Form 990 as an affiliate in 2020 (it was in 2019).
5. IUPA paid $356,275 in “rent” to a Florida LLC named “Ringling and Orange LLC” – who has one officer listed in public records – Rebecca Hunzeker – who appears to be tied to other companies out of Bedford, New Hampshire that have purchased office buildings in Sarasota.  It is unclear why IUPA paid rent to an outside organization when they own their own building (unless they were tied to a previous lease).
6. IUPA reported paying more than $100,000 to 6 independent contractors with the 5 most highly compensated reported to be:  $2.6 million to “Compliance Consultants, LLC DBA Americ” (which appears to be a fundraising firm), $2.2 million to American Technology Services, LLC out of Phoenix, AZ for “tech support” but appears to be for call center services; $1 million to United Data Service DBA as Cloud Data SE, of Indianapolis, IN for “data services” (which also appears to be related to fundraising expenses); $855,518 to Porac Legal Defense Fund for legal work, and $356,275 to Ringling and Orange, LLC for rent (see #5 above).  However, it is important to note that there appears to be more than 6 organizations that received more than $100,000.  IUPA also paid more than $100,000 to 6 fundraisers (See the Form 990, Schedule G, Part 1):  $345,193 to Outreach Calling, $326,860 to Residential Programs, Inc., $242,251 to Midwest Publishing, Inc., $219,422 to A Good Call LLC, $138,183 to Group Consultants, Inc, and $100,237 to Public Awareness, Inc.

The information above is a big red flag to proceed with caution because any non-profit that uses fundraisers who keep a larger portion of revenue than what goes to the non-profit is usually not in line with how donors want their donations used.

IUPA reported total expenses of $12.7 million, which were categorized as follows:

• $7.4 million (59% of revenue):  Fees paid to Fundraisers
• $2.0 million (16% of revenue):  Salaries, Benefits, Pension, and Payroll Taxes
• $1.8 million (14% of revenue):  Legal, Accounting and other Fees for Services
• $1.5 million (12% of revenue):  IT, Office, Occupancy, Insurance, Interest, Etc

Compensation totaled $2.0 million for 23 employees which equates to an average compensation of $87,000.  5 employees received more than $100,000 in compensation:

• $251,503:  Samuel A Cabral, President
• $160,165:  Holly Van Horsten, General Counsel
• $152,151:  Hugh J Cameron, Secretary-Treasurer
• $129,539:  Michael V Crivello, International VP
• $126,000:  Garry Lippman, Associate General Counsel

4 of the 5 most highly compensated employees are male while 1 is a female.

Using the above information, every $100 in revenue was spent as follows:

$100:  Revenue

-$ 12:  IT, Office-related Expenses

-$ 16:  Salaries, Benefits, Pension, and Payroll Taxes

-$ 14:  Legal, Accounting, and other Fees for Services

-$ 42: Subtotal: IT, Office, Compensation, Legal and other fees for services

 $ 58:  Revenue Remaining

-$ 59:  Professional Fundraising Fees

 -$   1:  Amount Overspent

As illustrated above, nearly 60% of total revenue (contributions and membership dues) goes to pay fundraisers.  IUPA spent $101 for every $100 raised in 2020.  If we look at fundraising revenue and fundraising expenses, and membership dues and organization expenses, there is more clarity.

IUPA is a labor union that has employed about 25 employees for the past several years. Annual expenses have historically (for the past few years) been about $4.5-$5.3 million (with the majority of expenses being staff compensation and fundraisers) but membership dues only brought in between $2.5-$4.1 million. So, IUPA had to make up the shortfall through fundraisers and they relied heavily on outside telemarketers to do this (but they paid a heavy price for these funds: about 90% of every contribution went to the fundraiser, leaving just 10% for IUPA).

IUPA has affiliate organizations whose names are used by fundraisers. These organizations operate out of the same business address in Sarasota go by the following names:

• The Institute for Police Research
• The IUPA Law Enforcement Officers Relief Fund
• The US Secret Service Uniformed Division Officers Association
• International Union of Police Associations – Florida Local 6000 – AFL-CIO:  
• Lee County Deputy Sheriff’s Association

The phone solicitation fundraiser’s names are:

• Outreach Calling of Reno, Nevada
• International Union of Police Associations Call Center (operates out of same office as IUPA) – listed in 2019 but not in 2020
• Donor Relations of Las Vegas, NV – listed in 2019 but not in 2020
• Public Awareness of Irving, TX
• Residential Programs, Inc. of Eatontown, NJ
• Midwest Publishing of St. Paul, MN
• Sponsored Relations of Houston, TX
• A Good Call of Waller, TX
• Group Consultants of Kennesaw, GA

If you receive a phone solicitation call, ask who is calling (the phone solicitors usually say they are calling on behalf or an organization and don’t tell you who they work for) but do not make a donation unless you want nearly 90% of your donation to go to the above organizations.

It is also important to note that it appears IUPA set up/recruited/ or simply allowed a call center as a separate for- profit organization (International Union of Police Associations Call Center) in their own office.  This organization raised $4.7 million but kept $4.2 million for fees, netting IUPA about $500,000 in 2019, yet this organization is absent from the Form 990 in 2020.  How can IUPA condone the fundraising behavior of a call center that calls itself the International Union of Police Associations Call Center and who solicits money for the IUPA (out of the same office that IUPA occupies) but keeps 89% of what they raised, giving only 11% to the IUPA?  IUPA only lists the fundraising firms that raised $1.6 million (and kept $1.4 million) on the Form 990?  Who raised the rest ($8.5 million less $1.6 million = $6.9 million) and who received the fundraising fees ($7.4 million less $1.4 million = $6 million)?

To read the IRS Form 990 (2020), click here.