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Politics & Government

Nonprofits Violate City Fundraising Rules

Five organizations are targeted for falling short on donations.

A city commission cited five nonprofits for repeatedly failing to meet guidelines for charitable fundraising in Beverly Hills.

Organizations that hold fundraisers in Beverly Hills are required to donate at least 50 percent of their net donations to the charity for which it is raising money. The Beverly Hills Charitable Solicitations Commission reported that the California Society of CPAs, the Beverly Hills Bar Association, the Los Angeles County Police Canine Association, the Advertising Industry Emergency Fund and Woodbury University have all violated the 50 percent rule three or more times.

Maria Nazario, program director for the California Society of CPAs, was unaware that her organization had not met the city's criteria until the commission published its report on nonprofits that are in violation of the 50 percent rule in May.

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"We just try to follow the guidelines wherever it is we have the event," Nazario said. The CPA group raises scholarship money for in-state students pursuing a postsecondary education in accounting.

Nazario said she hasn't faced this restriction in other cities. The CPA society is not planning any future events in Beverly Hills at this time, she said.

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The Beverly Hills Bar Association's annual Vintage Bouquet wine and food tasting and silent auction at Greystone Mansion did not raise enough money to donate at least 50 percent to its charity from 2003 to 2008, according to the commission's findings.

"This is one of those events that doesn't garner a lot of large donations," said Marc Staenberg, executive director of the Beverly Hills Bar Association.

He said donations for the fundraiser are typically short of the commission's standard by 10 percent. The Beverly Hills Bar Association raises money for Public Counsel, the largest pro bono public interest law firm in the world.

"There was no effort by us… to not net as much money as possible for the good purposes for which we're doing it," Staenberg said, calling the commission's announcement "somewhat harsh."

"Trying to meet that 50 percent standard in Beverly Hills is very difficult," said Anthony Vairo, president of the Los Angeles County Police Canine Association and the supervisor of the San Fernando Police Department's canine unit. "It's hard for us to control [event proceeds]."

Vairo said his organization was not aware of the 50 percent rule in Beverly Hills until recently.

The majority of nonprofits that hold their fundraisers in Beverly Hills are able to meet the city's criteria, according to Alissa Roston, chairwoman of the commission.

"Organizations that repeatedly violate the 50 percent rule should be aware that their actions will be publicized," Roston said in a news release. "People who donate to charities have a right to know how their money is being spent."

The executive director of the Advertising Industry Emergency Fund, Nicole Levitt, said the commission did not notify her organization that it failed to meet the 50 percent rule. She has since reached out to the commission to request that her group's name be removed from its list. Levitt declined to comment further.

Woodbury University did not return calls seeking comment.

The commission's report also reported that an additional 50 nonprofits did not donate at least half of their event proceeds to charity on one or two occasions.

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