August 20, 2007
(updated Sept 12, 2007)

How the names of political contributors of over $52,000 were hidden on the ProKanDo PAC Reports

Summary:  Normally a PAC report by Kansas law must contain the names of contributors.  In the 2005-2006 election cycle the Kansas ProKanDo PAC received multiple "contributions" from a fundraising company, Hudson Bay Company of Illinois, which is based in Minnesota.  ProKanDo reported contributions of over $52,000 from Hudson Bay during this election cycle in its reports to the Kansas Governmental Ethics Commission.  However, information on Hudson Bay's web site shows that ProKanDo is a client, and gives details of their fundraising approach.  If the "contributions" received by ProKanDo from Hudson Bay came from solicitations made on their behalf by Hudson Bay, ProKanDo should have identified the contributors on their PAC reports, instead of listing the source of funds as Hudson Bay.

How or if this approach is legal in Kansas is not clear.  If this approach is legal, all PACs in Kansas only need to contract with someone on their behalf for fundraising, and then report the amount and names of the fundraisers and not the original contributors.  If this approach is not legal in Kansas, ProKanDo needs to file amended reports, and possibly face fines.  On their reports to the Ethics Commission, perhaps ProKanDo should have listed all contributors from their solicitations by Hudson Bay, and then reported the fee they paid to Hudson Bay for their services.  Information from a variety of States Secretaries of State and Attorneys General, suggest that Hudson Bay Company of Illinois returns somewhere from 40% to 74% of the raw solicitations to its clients, so Hudson's fee's were never included in the PAC report.  

Background.  In late 2004, ProKanDo reported two contributions from Hudson Bay Company of Illinois from Aroka, MN.  ProKanDo said they had "requested" information about the nature of this company in their Jan 10, 2005 filing with the Kansas Governmental Ethics Commission:

In their Jan 10, 2006 report ProKanDo showed continued contributions from Hudson Bay, but indicated this firm was a "Telemarketing" company:

During the 2005-2006 election cycle ProKanDo reported 23 contributions from Hudson Bay, which totaled $52,498.95:

Lawyers representing Hudson Bay in a matter with the Federal Trade Commission said this in July 2002:

The Secretary of State of the State of Washington shows this report that Hudson Bay returned 73% to its Washington charity clients:

A 2005 report by the Secretary of State of the State of Washington showed this 73% figure was 9th best of commercial fundaisers in the State of Washington return contributions to client charities.  

A 2003 report by the Pennsylvania Department of State showed that Hudson Bay returned from about 40% to 74% to clients.  A Massachusetts Attorney General's report shows Hudson Bay's return to clients averaged 72.83%.  A notice by the Attorney General's Office of the State of Connecticut identified Hudson Bay Company of Illinois of Anoka, MN would be conducting a telephone solicitation for the Center for Environmental Health of Oakland, CA stating the client would receive a minimum of 40% of the gross funds raised by Hudson Bay.  The Attorney General of California listed Hudson Bay on its 2005 list of commercial fundraisers who were registered in 2005 but did not file their financial reports for 2005.

As of Aug 31, 2007, Hudson Bay of Illinois (from Minnesota) had no current reports filed with the Kansas Secretary of State for their fundraising activities, but they had filed a few years ago.  Nothing can be found online about Hudson Bay with Kansas CharityCheck.

While ProKanDo claims Hudson Bay is a "Telemarketing" company giving them contributions, the Hudson Bay web site indicates ProKanDo is a client, who is using their services as a fundraising company:

The Hudson Bay web site also indicates how they usually work getting started with their fundraising for a client:

K a n s a s M e a d o w l a r k @ g m a i l . c o m