Charity Review

  • Issued: November 2017
  • Expires: November 2019

National Association of Chiefs of Police

Standards Not Met

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  • 4
  • 6
  • 8
  • 9
  • 14
  • 16
  • 17

321-264-0911

6350 Horizon Drive
Titusville, FL 32780

http://www.nacoponline.org

321-264-0911

6350 Horizon Drive
Titusville, FL 32780

http://www.nacoponline.org

Standards Not Met

This organization does not meet one or more of the 20 Standards for Charity Accountability. Click the conclusions section below for more information.

Standards For Charity Accountability

Governance

  1. Board Oversight

    Oversight of Operations and Staff: Standard 1

    Description
    Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

    The organization meets this standard.

  2. Board Size

    Number of Board Members: Standard 2

    Description
    Soliciting organizations shall have a board of directors with a minimum of five voting members.

    The organization meets this standard.

  3. Board Meetings

    Frequency and Attendance of Board Meetings: Standard 3

    Description
    An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.

    NACOP does not meet this Standard because:

    • The board of directors held one meeting in 2017. 

  4. Board Compensation

    Compensated Board Members: Standard 4

    Description
    Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.

    NACOP does not meet this Standard because:

    • Seven members out of the 18 member board of directors (39%) are compensated as staff members of the organization. 
    • The treasurer of the board of directors is compensated as a staff member of the organization. 

  5. Conflict of Interest

    Conflict of Interest: Standard 5

    Description
    No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.

    The organization meets this standard.

Measuring Effectiveness

  1. Effectiveness Policy

    Board Policy on Effectiveness: Standard 6

    Description
    Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

    NACOP does not meet this Standard because:

    • The board of directors does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization’s performance and effectiveness and determining future actions required to achieve its mission.

  2. Effectiveness Report

    Board Approval of Written Report on Effectiveness: Standard 7

    Description
    Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

    The organization meets this standard.

Finances

  1. Program Expenses

    Program Service Expense Ratio: Standard 8

    Description
    Spend at least 65% of its total expenses on program activities.

    NACOP does not meet this Standard because:

    • According to its audited financial statements for the fiscal year ended September 30, 2016, the organization spent $1,552,343 or 46% of its total expenses ($3,398,600) on program service activities.

  2. Fundraising Expenses

    Fund Raising Expense Ratio: Standard 9

    Description
    Spending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.

    NACOP does not meet this Standard because:

    • According to its audited financial statements for the fiscal year ended September 30, 2016, the organization's fund raising costs were 48% ($1,361,186) of related contributions, which totaled $2,815,395.

  3. Accumulating Funds

    Ending Net Assets: Standard 10

    Description
    Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.

    The organization meets this standard.

  4. Audit Report

    Financial Statements: Standard 11

    Description
    Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.

    The organization meets this standard.

  5. Detailed Expense Breakdown

    Detailed Functional Breakdown of Expenses: Standard 12

    Description
    Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

    The organization meets this standard.

  6. Accurate Expense Reporting

    Accuracy of Expenses in Financial Statements: Standard 13

    Description
    Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.

    The organization meets this standard.

  7. Budget Plan

    Budget: Standard 14

    Description
    Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.

    NACOP does not meet this Standard because, when the organization provided 2016 budget information, it indicated that the budget:

    • Did not identify total projected program service expenses. 
    • Did not identify total projected fund raising expenses.
    • Did not identify total projected administrative expenses. 

Fundraising & Info

  1. Truthful Materials

    Misleading Appeals: Standard 15

    Description
    Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.

    The organization meets this standard.

  2. Annual Report

    Annual Report: Standard 16

    Description
    Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

    NACOP does not meet this Standard because the 2016 annual report did not include:

    • Total end of year net assets.

  3. Website Disclosures

    Web Site Disclosures: Standard 17

    Description
    Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.

    NACOP does not meet this Standard because its website, www.nacoponline.org, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:

    • A summary of 2015-2016 program service accomplishments.

  4. Donor Privacy

    Privacy for Written Appeals & Internet Privacy: Standard 18

    Description
    Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

    The organization meets this standard.

  5. Cause Marketing Disclosures

    Cause Related Marketing: Standard 19

    Description
    Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).

    The organization meets this standard.

  6. Complaints

    Complaints: Standard 20

    Description
    Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fund raising practices, privacy policy violations and/or other issues.

    The organization meets this standard.

Conclusion

National Association of Chiefs of Police does not meet the following 8 Standards for Charity Accountability:

Standard 3 - Frequency and Attendance of Board Meetings
An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.

NACOP does not meet this Standard because:

  • The board of directors held one meeting in 2017. 

Standard 4 - Compensated Board Members
Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.

NACOP does not meet this Standard because:

  • Seven members out of the 18 member board of directors (39%) are compensated as staff members of the organization. 
  • The treasurer of the board of directors is compensated as a staff member of the organization. 

Standard 6 - Board Policy on Effectiveness
Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

NACOP does not meet this Standard because:

  • The board of directors does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization’s performance and effectiveness and determining future actions required to achieve its mission.

Standard 8 - Program Service Expense Ratio
Spend at least 65% of its total expenses on program activities.

NACOP does not meet this Standard because:

  • According to its audited financial statements for the fiscal year ended September 30, 2016, the organization spent $1,552,343 or 46% of its total expenses ($3,398,600) on program service activities.

Standard 9 - Fund Raising Expense Ratio
Spending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.

NACOP does not meet this Standard because:

  • According to its audited financial statements for the fiscal year ended September 30, 2016, the organization's fund raising costs were 48% ($1,361,186) of related contributions, which totaled $2,815,395.

Standard 14 - Budget
Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.

NACOP does not meet this Standard because, when the organization provided 2016 budget information, it indicated that the budget:

  • Did not identify total projected program service expenses. 
  • Did not identify total projected fund raising expenses.
  • Did not identify total projected administrative expenses. 

Standard 16 - Annual Report
Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

NACOP does not meet this Standard because the 2016 annual report did not include:

  • Total end of year net assets.

Standard 17 - Web Site Disclosures
Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.

NACOP does not meet this Standard because its website, www.nacoponline.org, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:

  • A summary of 2015-2016 program service accomplishments.

National Association of Chiefs of Police meets the remaining 12 Standards for Charity Accountability.

Purpose

  • Year, State Incorporated

    1967, Florida

  • Stated Purpose

    "to promote and support the law enforcement profession."

Programs

NACOP works to provide programs to law enforcement agencies with the goal of helping them better serve their communities. The organization offers assistance to law enforcement officers paralyzed or injured in the line of duty and programs for their families. In addition, NACOP provides public awareness efforts to help the public understand and appreciate contributions made by the law enforcement sector, which include: promoting the annual observance of Peace Officers’ Week and Peace Officers’ Memorial Day on May 15th. In addition, the organization publishes, distributes and prints materials that relate to law enforcement history, training, services and research studies. NACOP maintains and perpetuates the American Police Hall of Fame and Museum for the purpose of honoring those officers who have died in the line of duty and to house a museum of law enforcement artifacts for public display and education. The organization also sponsors educational seminars and conferences for those who supervise agencies in law enforcement at the federal, state, county and local levels as well as private security. NACOP funds and provides resources to law enforcement agencies for crime prevention and/or crime deterrent programs or services. Examples include: police K-9s, K-9 program related expenses, community oriented gun safety programs, and children’s safety education. NACOP also operates Shooting Center an indoor shooting range, which is open to law enforcement, corrections, security, military personnel, and the general public. The organization reports that the range is used for teaching firearm safety and self-defense, training, competitions, and practice. Some ($562,538, or 36%) of NACOP's programs are conducted in conjunction with fundraising appeals.

Program services 1,552,343
Total Program Expenses: $1,552,343

Governance & Staff

  • Chief Executive

    Barry Shepherd, Chief Executive Officer

  • Compensation*

    $95,608

  • Chair of the Board

    Jack L. Rinchich

  • Chair's Profession / Business Affiliation

    Retired Law Enforcement

  • Board Size

    18

  • Paid Staff Size

    22

*2015 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.

Fundraising

Method(s) Used:

Direct mail, telemarketing, print advertisements, Internet appeals, and planned giving.

NACOP incurred joint costs of $1,818,060 for informational materials and activities that included fund raising materials. Of those costs, $1,175,952 was allocated to fund raising expenses, $562,538 was allocated to program expenses, and $79,570 was allocated to administrative expenses.

Fundraising costs were 48% of related contributions. (Related contributions, which totaled $2,815,395, are donations received as a result of fundraising activities.)

Tax Status

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.

Financial

The following information is based on NACOP's audited financial statements for the fiscal year ended September 30, 2016.

Source of Funds
Contributions 2,815,395
Museum revenues 317,204
Membership dues 122,121
Rental income 96,000
Investment income 27,902
Advertising 10,585
Total Income $3,389,207
  • Programs: 46%
  • Fundraising: 40%
  • Administrative: 14%
Total Income $3,389,207
Program expenses 1,552,343
Fundraising expenses $1,361,186
Administrative expenses $485,071
Other expenses $0
Total expenses: $3,398,600
Expenses in Excess of Income (-9,393)
Beginning Net Assets 5,813,996
Ending Net Assets 5,804,603
Total Liabilities 161,091
Total Assets 5,965,694

An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

This report is not to be used for fundraising or promotional purposes.