Investigation: Why is LA County Fire Department’s charitable foundation in ‘delinquent’ status?
The Los Angeles County Board of Supervisors voted on Tuesday, Nov. 21 to investigate the county Fire Department Fire Foundation, after the charity fund was placed on delinquent status by the California Department of Justice.
The Office of the County Counsel will launch an investigation that will try to find out how the foundation received delinquent status and exactly what the status downgrade means for the operations of the foundation in the past and moving forward, according to a board report.
In about two weeks, when a report comes back to the board, the supervisors hope to learn if the problems were deliberate or unintentional, and whether past donations are affected.
“I am outraged and disappointed,” said Fourth District Supervisor Janice Hahn in an emailed response. Hahn, who chairs the board, also wrote the motion to investigate the fund that garnered a 4-0 vote.
“Whether it was malicious or accidental, there is no excuse for jeopardizing this organization that has become so important to our firefighters or for misleading donors who thought they were contributing to a nonprofit in good standing,” Hann continued. “I am calling for a full investigation into exactly what happened and why it took so long for the fire chief and the Board of Supervisors to be told.”
The foundation has been listed as “delinquent” by the DOJ since May 2022. But the board and the individual supervisors did not learn of the problem until last week, according to a board report.
The delinquent status “is because of failure to properly submit a required form and payment,” the report said, quoting the California DOJ website. What effect this has on past donations, as well as future donations made to the Fire Foundation, will be investigated.
“This revelation also brings up questions about the donations that have been raised in the past and how they have been spent,” the county reported.
Ryan Nowicki, an attorney hired by the foundation, told the board that the problem is being fixed and that the foundation is in good standing with the IRS. New paperwork was submitted and is being processed with the California DOJ, making the delinquent status temporary, he added.
The Los Angeles County Fire Department Foundation is the official 501(c)(3) tax-exempt, non-profit organization of the Los Angeles County Fire Department. The foundation, which began operating in 2016, is independent of the county and operates separately from the L.A. County Fire Department. It has its own board of directors and budget. Their slogan states that they were formed to “turn your donations into equipment and education that saves lives.”
Some of the recent gifts donated through the foundation that found their way to fire stations included hedge trimmers, a pressure washer and a stove. Even the Girl Scouts gave free cookies to various fire stations. The foundation also supports the county’s junior lifeguard program, which trains young people so they can join the lifeguard staff at county pools and beaches.
Recently, corporate donations have been received from EastWest Bank, Verizon ($10,000), Wells Fargo and Annenberg, according to the foundation website.
“In my participation with them (foundation), they have held their protocols to a rigorous standard, and have been above reproach,” wrote Jesse Oswald in a written comment to the board.
In addition to the county counsel, the board ordered the county auditor-controller to conduct an investigative audit of the Fire Foundation’s revenues and expenditures since the organization came into existence on May 17, 2016. The auditor-controller, along with the county counsel’s office, have been granted the power to issue subpoenas for records and of witnesses.