Actually, Lutheran Protestants (the first protestants by some accounts) DO practice Confession (both corporate and individual), we just don’t consider it a sacrament…we acknowledge two and one-half sacraments: Baptism, Holy Eucharist, and the “half” is Penance; it has the spiritual element, but no Earthly element. (Baptism has water and the Spirit; Communion has water, wine and Christ’s presence; Penance only has the promise of Christ that our sins are forgiven.)
Perhaps the department uses the funding to advertize their program in which citizens donate the gifts, and the officers distribute them to the community. The US Marines do a similar “Toys for Tots” campaign each year…funded by the government, but the toy donations come from citizens.
Used a variant of that joke on our Christmas card this year.