2015 Local Charity Application Training March 2015

1961 – President Kennedy -- Executive Order Why? Federal employees being asked by many charities regularly Only authorized solicitation of Federal employees World’s largest Governed by Title 5, Part 950 of the code of Federal Regulations Memoranda & Guidelines What Is CFC?

Today, there are approximately 150 CFCs throughout the U.S., Puerto Rico, the U.S. Virgin Islands, and overseas military bases. Since inception, in excess of $7.6 billion has been raised. What Is CFC?

Campaigning for Charities The federal government cannot raise money for charities Local Federal Coordinating Committee (LFCC) Memo of Agreement Managing organization since March 1, 2011

Over $2.2 Million Pledged in 2014 Campaign More than 20,000 Charities In the 2014 Universal Giving List

CFC Timelines April 1, Local Charity Applications Due April 30, 2015 – Notification of LFCC’s Decision June 4, Deadline for LFCC’s Appeal Decision September-December 15, 2015 – Campaign Solicitation September 2015 – Speakers Bureau Sign-Up March 15, 2016 – Information about Designations April 1, 2016 – First Disbursement to Charities March 31, 2017 – Last Disbursement to Charities

Importance of Quality Legible Easy to read Attachments tabbed Complete

Key Application Documents Att. B IRS Determination Letter Att. C (if appl.) Audited Financial Statements Att. D IRS Form 990 (same period as audit) Att. A 2014 Service Description Att. E 25-Word Statement Doc 2015 CFC Application Certifications

CFC Application Cover Page Name of the organization must be the one on the IRS master file Organization address must be a physical mailing address. No P.O. Boxes Contact info may include P.O. Boxes EFT – All Campaigns

Cover Page Common Problems Not providing DBA documentation Not updating CFC with contact information Using a post office box instead of a physical address as the official charity’s address

All charities must prove “Local Presence” to be included in the Desert Southwest CFC. Local – Office in local campaign area open 15 hours per week with a dedicated phone line CFC Certification Statement #1 Local, Adjacent, or Statewide Presence

Local Presence Requires: Service Office Address (if different from Organization Address on previous page) Hours of Operation per Each Day of the Week (Example: Monday-Friday, 9AM-5PM; Saturday, 10AM-3PM; Sunday, Closed) Organization’s Dedicated Phone Number: County and State Where Office is Located:

CFC Certification Statement #1 Local, Adjacent, or Statewide Presence

Attachment A Supporting statements and/or documentation Description of actual services, benefits, assistance, or program activities in CALENDAR YEAR 2014 How services, benefits, assistance, programs affect human health and welfare to target population

WHO received the service, benefit, or assistance WHAT the service, benefit, or assistance was WHEN it was delivered WHERE it was delivered Looking For …..

– Generalized statements – Listing “offered” services – Listing location of members, affiliates, or board members – Listing the residences of visitors to a facility – Listing services provided by the service recipient or other entity – Fundraising activities as a service Applicants Should Avoid

Factors LFCC May Consider Nature and extent of the service, benefit, assistance, or program activity Frequency, continuity, and duration Impact on, or benefit to, beneficiaries Number of beneficiaries

Common Problems on Item #1 Providing city not county Not making a strong case of services provided in calendar year 2014 on ATTACHMENT A Writing “2013” instead of “2014” on Attachment A Giving fiscal year statistics instead of calendar year stats Not giving examples of HOW services provided helped Not embracing statistics

Item #2 I certify that the Internal Revenue Service (IRS) recognizes the organization named in this application as tax-exempt under 26 U.S.C. 501(c)(3) and to which contributions are tax deductible pursuant to 26 U.S.C. 170(c)(2). Include as ATTACHMENT B a copy of the most recent IRS determination letter.

Statement #2 & #3 Tax-Exempt Status 501(c)(3) Tax- Exemption Not part of group exemption Has own IRS letter Part of Group Exemption Name may not be unique EIN listed in IRS BMF Chapter/Affiliate Letter from CEO Name and EIN may be same as the parent org.

Common Problems on Item #2 IRS Letter outdated OR there are problems that the charity is not aware of Check IRS online to see if in good standing by going to Select “EO Select Check” If group status – list of subordinates If bonafide chapter of national organization – letter from CEO dated on or after 10/1/14 Name on IRS Letter must match Form 990 and audit If name doesn’t match, letter authorizing “Doing Business As” name from state or federal government entity

Common Problem on Item #3 Certify not part of group exemption, but marked as a group exemption on IRS Form 990

Item #4 I certify that the organization named in this application is a human health and welfare organization providing services, benefits, or assistance to, or conducting activities affecting human health and welfare. The services, benefits, assistance, or program activities affecting human health and welfare provided in calendar year 2014 are reflected in ATTACHMENT A. Common Problems: Not making a strong case of services provided in calendar year 2014 (See #1)

Item #5 – Audited Financial Statements Total Revenue Per 990 >$250k$ k <$100k Accrual Accounting (GAAP) Audited Annually Submit Audit

Item #5 (cont) Audit must cover the fiscal period ending on or after June 30, 2013 (18 months prior to January 2015) Audit must state organization accounts for its funds in accordance with generally accepted accounting principles (GAAP) and it was audited in accordance with generally accepted auditing standards (GAAS) “except for” statements may cause denial Audit report must be signed, dated and be on the audit firm’s letterhead

Common Problems on #5 Page 9, IRS Form 990

Common Problems on #5 (cont) Page 12, IRS Form 990

Item #6 IRS Form 990 vs Pro Forma 990 IRS Form 990 Filed with IRS Match FY of Audit FY ended on or after 6/30/13 Officer’s Signature or E- File signed form All sections Pro Forma 990 Download 990 from IRS website ( FY ended on or after 6/30/13 Officer’s Signature Parts I (items A-M, Summary, & Lines 1-4 only), II, VII, VIII, IX, and XII only

Check the one appropriate box: I certify that the organization named in this application prepares and submits to the IRS a complete copy of the organization’s IRS Form 990 (Include as ATTACHMENT D a copy of the complete IRS Form 990 for a period not more than 18 months prior to January 2015) -- OR – I certify that the organization named in this application is not required to prepare and submit an IRS Form 990 to the IRS. (Include as ATTACHMENT D a pro forma IRS Form 990 for a period ending not more than 18 months prior to January See application instructions for pro forma IRS Form 990 requirements. IRS Forms 990 EZ, 990PF, and comparable forms are not acceptable substitutes.) Item #6 (cont)

LFCC will confirm following information: 1.Signature in “Signature of Officer” & Date (or e-file proof) 2.IRS Forms 990 EX, 990 PF, and comparable forms are not acceptable substitutes 3.Number of voting members disclosed in Part I, Line 3 equal to or less than the number of individuals that have the “individual trustee or director” or “institutional trustee” position selected in Part VII, Column C If the number in Part I is more than Part VII, the charity must provide a written explanation Failure to clarify the difference or to timely file an amended IRS Form 990 with the IRS may result in a denial of the CFC application 4.Part XII – Method of Accounting is “Accrual” for charities with revenues of $100,000+

Item #6 IRS changed the threshold that a charity can use 990 EZ If charity submitted 990 EZ to IRS, CFC will still need the IRS Pro Forma 990. This includes the following sections on the IRS Form 990: Page 1, Items A-M Part I (Summary and Part II, Signature Block), Lines 1-4 only Part VII (Compensation sections A only) Part VIII (Statement of Revenues) Part IX (Statement of Functional Expenses) Part XII (Financial Statements and Reporting)

Item #6 cont Page 1, IRS Form 990

Common Problems on Item #6 Page 1, IRS Form 990

Item #6 cont Page 7, IRS Form 990

Common Problems on Item #6 (cont) Page 12, IRS Form 990

Item #7 I certify that the administrative and fundraising rate for the organization named in this application is ___ ___. ___ %. This percentage is computed from the IRS Form 990 submitted with this application. Common Problems: Not rounding to the nearest tenth of percent. For example: = 10.6% = 10.5%

Item #7 (cont) IRS Form 990 Page 10 – Line 25, Add Column C to Column D Add Line 25 Column A to Column D, Divide sum by Line 12 Column A ($15,000 + $15,000=$30,000. $30,000/$500,000 = Page 9 – Divide sum of Line 25 Column A + Column D to Line 12, Column A 6.0%

Item #8 I certify an active and responsible governing body, whose members have no material conflict of interest and a majority of whom serves without compensation, directs the organization named in this application.

Item #8 (cont)

Item #9 I certify the organization named in this application prohibits the sale or lease of CFC contributor lists.

Item #10 I certify the organization named in this application conducts publicity and promotional activities based upon its actual program and operations, and that these activities are truthful and non-deceptive, include all material facts, and make no exaggerated or misleading claims.

Item #11 I certify that the organization named in this application effectively uses the funds contributed for its announced purposes.

Item #12 Sanctions compliance certification is required Wording in CFC application provided by OPM must be used The list of countries, entities, or individuals referenced in the certification can be found at Guidance in CFC Memorandum Charity’s responsibility to notify OPM’s CFC Operations immediately if, at any time, the circumstances of this certification changes

Attachment E Organization’s Legal Name: Organization’s DBA: Telephone number: (_____) Website (if applicable): IRS Employer Identification Number: Administrative & Fundraising Rate: _______ _______. _______% CFC #: ______________ Taxonomy Codes (up to three): _______ _______ _______ 25-word statement:

Common Problems on Item #13 Did not use the Attachment E provided More than 25 words Website not included Administrative & Fundraising Rate is not the same as on Item #7 No taxonomy code(s) listed

Certifying Official Applicants must check the box next to each statement to demonstrate compliance with each certification statement

Questions ????

Thank you!