1. Sponsorships Use, Ethics & Events & The Repercussions of the Berry Food / Beverage Directive 2013 MDRT Conference Atlanta, GA Facilitators: Dennis Burns & Lonna Moaratty

2. The Berry Directive Directive was effective immediately, March 28, 2012, and is not limited to a specific campaign period. Campaigns are prohibited from incurring expenses or seeking reimbursement using CFC funds for food and/or entertainment from that date forward. Does the Directive impact the reimbursement for meals incurred by PCFO staff, federal loaned executives and campaign workers when traveling out-of-town for example to the annual OPM workshop? The directive prohibiting paying for food and entertainment from CFC funds does not prohibit reimbursement for travel costs incurred by an individual needed in order to conduct CFC business or attend a training event. Of course, those travel costs may not exceed the per diem rates established by the General Service Administration (GSA). This would include travel for the annual CFC training or overnight travel to campaign sites in large regional campaigns. No expenses for entertainment during the travel may be charged to or reimbursed by the CFC. As always, expenses must be preapproved by the LFCC. If you and/or the LFCC are concerned about whether the cost of planned travel is reasonable and reimbursable, please seek guidance from OCFC.

3. The Berry Directive Are other costs associated with campaign events permitted? The reasonable costs of items such as room rental, balloons, programs, etc, are permitted if approved by the LFCC. In its review of these expenditures, the LFCC should consider whether the expenses are reasonable and whether they promote the goal of securing the most funds possible for the charities designated by CFC donors. When in doubt, the OCFC is available to offer guidance. Can the CFC charge donors to attend an event? The fee would cover the cost of food and/or entertainment. Yes. However, the expenses and the revenues cannot be accounted for as CFC funds. The PCFO or the Federal agency where the event is held must provide the financial support in advance and be the point of reimbursement from employees. The CFC cannot incur the expenses in advance, even if it will be fully reimbursed from attendance fees at a later date. Attendees must be informed that the fee is not a CFC contribution and is not tax- deductible.

4. The Berry Directive Are food/entertainment expenses permissible if they are provided by a business or another source and not charged to the campaign? Food and/or entertainment may be provided at campaign events if the costs are not borne at any time by the CFC. CFC Memorandum 2006-05 provides additional information on the accounting for such expenses. The phrase “campaign events” for these purposes means events that are open to all potential donors with the purpose of encouraging them to make a contribution or to thank them for their participation. Campaign events also include award ceremonies. Campaign events do not include LFCC meetings, LE or keyworker or other campaign personnel trainings or other events that are not open to all potential donors in a Federal agency or the campaign region. As always, campaigns must clear all sponsorships with the Designated Agency Ethics Officers of the Federal agencies that will participate in the event. Can the CFC accept in-kind contributions, such as food, from businesses or other sponsors? The campaign may accept non-monetary items for usage in the CFC if the Designated Agency Ethics Officer of every Federal agency with staff attending the event has approved the source of the contributions and the value per employee.

5. The Berry Directive Is there a rational in not bringing MDRT stake-holders into decisions like this and the potential/proposed regulatory changes that were not recommended by the 50 Commission? Particularly consider the 3 months it took to clarify all the needed “exceptions” to the Berry Directive which would have been identified. The out-of-pocket burden on CFC staff, LE’s, LFCCs, keyworkers… The Workarounds: Federal Sponsorship PCFOs FEB / FEA’s Other Creative Options

6. Sponsorships & Donations  GEICO  What are you getting?  How are you using it?  How do we make it a win / win?  New requirements  Using the FEB/FEA in 2013?  Directly to 3 rd Party vendors?

7. Sponsorships & Donations Who else is sponsoring you? Who else is sponsoring you? Locally & Nationally Locally & Nationally In-kind donations In-kind donations Varied Agency Ethics Varied Agency Ethics How to deal with the inconsistancies, challenge the “won’t approve anything” agencies How to deal with the inconsistancies, challenge the “won’t approve anything” agencies What do you do with the CFC-wide events: the lowest common denominator or just have agencies “opt out” What do you do with the CFC-wide events: the lowest common denominator or just have agencies “opt out”

8. Ethics & Events Is it a drawing, is it a raffle, is there anyway to have an affective fundraiser? The Rules as we know them: Is it a drawing, is it a raffle, is there anyway to have an affective fundraiser? The Rules as we know them: OPM Regulations regarding fundraising events and CFC: § 950.602 Solicitation methods. (a) Employee solicitations shall be conducted during duty hours using methods that permit true voluntary giving and shall reserve to the individual the option of disclosing any gift or keeping it confidential. Campaign kick-offs, victory events, awards, and other non-solicitation events to build support for the CFC are encouraged. (b) Special CFC fundraising events, such as raffles, lotteries, auctions, bake sales, carnivals, athletic events, or other activities not specifically provided for in these regulations are permitted during the campaign period if approved by the appropriate agency head or government official, consistent with agency ethics regulations. CFC special fundraising events should be undertaken in the spirit of generating interest in the CFC and be open to all individuals without regard to whether an individual participates in the CFC. Chances to win must be disassociated from amount of contributions, if any. Raffle prizes should be modest in nature and value. Examples of appropriate raffle prizes may include opportunities for lunch with Agency Officials, agency parking spaces for a specific time period, and gifts of minimal financial value. Any special CFC fundraising event and prize or gift should be approved in advance by the Agency's ethics official. (c) In all approved special fundraising events the donor must have the option of designating to a specific participating organization or federation or be advised that the donation will be counted as an undesignated contribution and distributed according to these regulations.

9. Ethics & Events Legal Opinion to Make a Raffle a Non- gambling Event (VARIES BY STATE) 1) the raffle must involve a "general and indiscriminate distribution" of tickets (meaning that tickets must be sent/distributed broadly and available freely upon request); 2) free tickets must be offered on the same terms as those tickets for which a donation is given (i.e., free tickets must have the same chance to win); and 3) participants must not have to pay to have a chance to win, and the tickets should make absolutely clear that people may participate at all stages of the event for free.

10. Ethics & Events CASE STUDY Our Proposal: Our Proposal: Eventually approved by OPM with the agency disclaimer of course :  Teams create baskets. Our goal is to raise CFC funds that would correspond to the value of the baskets.  Baskets will be displayed and employees can place tickets in boxes in front of each basket. Winners will be drawn from tickets placed in the boxes provided for each basket.  Tickets will not be tied in any way to CFC contributions/pledges.  Tickets will be available at a suggested donation level but not required (ie. if someone wanted a ticket without a donation it would be given) removing the pay to play scenario.  Tickets will be available at a suggested donation level but not required (ie. if someone wanted a ticket without a donation it would be given) removing the pay to play scenario.

11. Ethics & Events All Kinds of Shades of Grey Open to all employees – “ALL” – REALLY? The phrase “campaign events” for these purposes means events that are open to all potential donors with the purpose of encouraging them to make a contribution or to thank them for their participation. Campaign events also include award ceremonies. Campaign events do not include LFCC meetings, LE or keyworker or other campaign personnel trainings or other events that are not open to all potential donors in a Federal agency or the campaign region. SO IF LUNCH IS SPONSORED AT YOUR KEYWORKER TRAINING IN A FEDERAL AGENCY AND NEVER HITS THE “CFC BOOKS” IS IT OK IF THE AGENCY APPROVES IT? IF YOUR FEA SPONSORS AN EVENT IS IT OK? Reasonable Gifts? Is it $20, Or if it is going to tens of thousands of federal employees is it a Harley? Reasonable Costs? OPM: The room charge is reimbursable as long as it is reasonable. Room fees, “All-Inclusive” Room fees

12. Ethics & Events So at the End of The Day What Is “OK”? So at the End of The Day What Is “OK”? Dunk Tanks? Pie in the Face?– is it ethical? Dunk Tanks? Pie in the Face?– is it ethical? Gift Baskets – is it ethical? Gift Baskets – is it ethical? Most money gets dunked – is it ethical? Most money gets dunked – is it ethical? Vote for your fav “XYZ” ie chili contest – is it ethical? Vote for your fav “XYZ” ie chili contest – is it ethical? Other events? Other events?

13. Wrap Up Final Questions? Final Questions? Final Comments? Final Comments? THANK YOU!