1. Eligibility Workshop 2003 Jan Stinson, Federal Executive Board Chicago, IL

2. CFC MISSION To promote and support philanthropy through a program that is employee-focused, cost-efficient, and effective in providing all Federal employees the opportunity to improve the quality of life for all.

3. CFC FACTS The Combined Federal Campaign Established in 1961, the CFC is the only government- authorized solicitation of employees in the Federal workplace on behalf of charitable organizations. It is the largest workplace fundraising campaign in the world. In 2001, about 1.46 million Federal employees donated $241 million to charitable causes. These funds were distributed by 362 Principal Combined Fund Organizations (PCFOs) to thousands of charities across the United States and around the world.

4. Local Federations Local Unaffiliated Organizations PCFOs

5. Who may serve as PCFO Only federations, charitable organizations or combinations thereof. Public Notice 2003 campaign by February 1 – but recommended January 17 Must be open at least 14 calendar days Application Period Recommended deadline for PCFO applications to LFCC by February 17, 2003 LFCC selection of PCFO no later than March 15 [Subpart H – CFC Timetable, 950.801(a)(3)] PCFO Responsibilities are detailed in 5 CFR 950.105 PCFO Eligibility Process

6. Local Eligibility Process Application Period –Must be open for 30 calendar days –Recommended opening date for local applications – March 17, 2003 –Recommended closing date – April 14, 2003 –Chicago closing date – 5 p.m. on Friday, April 4, 2003 –These may vary from one campaign area to another Review Process –Initial decision within 15 business days of closing date. –All LFCC initial decisions must be made by May 5, 2003 –Chicago decisions will be made by April 25, 2003

7. Local Eligibility Must be one of the following: Local Presence in area covered by campaign Staffed facility, office or portion of residence dedicated exclusively, open at least 15 hours a week, phone line dedicated exclusively to that organization Adjacent campaign Meets all local eligibility criteria in an adjacent campaign Statewide Campaign Provides real services to at least 30 percent of the state’s population or 30 percent of the state’s geographical boundaries. (30% of the targeted population for organizations servicing special groups – i.e. persons with HIV or AIDS, adults requiring literacy instruction, etc.) Must provide supporting documentation. For federations the above can be met through itself or through its member organizations.

8. Local Eligibility Must certify that the federation or individual charity is recognized by the IRS as tax-exempt under 26 U. S. C. 501(c)(3). Must submit a copy of the most recent IRS determination letter. (If name of the organization is different from the name on the IRS Form 990, official documentation authorizing the name change must accompany the application.) Federal Tax ID Number must be included.

9. Must certify that expenses of the organization connected with lobbying classified as tax-exempt under 26 U.S.C. 501(h) or Certify that it does not engage in lobbying nor attempt to influence voting or legislation at the local, State or Federal level. Must certify that it is a human health and welfare organization. Must submit documentation describing the benefits. If a federation is claiming direct services, it must include supporting information that describes the benefits provided within the previous year. Local Eligibility

10.  Must certify that it accounts for its funds in accordance with generally accepted accounting principles (GAAP).  Must certify that it was audited in accordance with generally accepted auditing standards (GAAS) by an independent CPA in the immediately preceding year.  Organizations with annual revenue of $100,000 or less or newly created federations are exempt from submitting a GAAS/GAAP audit. (Determined by Line 12 of IRS Form 990.) Local Eligibility

11.  Most recent audit:  Must cover the fiscal year not ending more than 18 months prior to January of the campaign year.  Audit and IRS Form 990 must be for the same fiscal period.  Compiled audits are not acceptable.  Consolidated audits must include a separate section on the applicant.  Federations’ audits must verify that the federations are honoring designations made to each member organization. Local Eligibility

12.  Accrual method of accounting: If total revenue is $100,000 or more, BOTH the audit and the IRS Form 990 must be prepared using the accrual method of accounting. (Check audit certification page and Box J on the IRS Form 990.) (Total revenue is determined by Line 12 of the IRS Form 990.) If the total revenue is less than $100,000, agencies do not have to provide an audit. Because there is no need to reconcile the IRS Form 990 with an audit, the IRS Form 990 does not have be prepared using the accrual method. (Box J may be checked showing “cash” or “other” accounting method used.) (CFC Memorandum 2001-2) Local Eligibility

13. Local Eligibility IRS Form 990 information: IRS Form 990 Requirements:  An IRS Form 990 is required by CFC regardless of whether or not one is required by the IRS.  The IRS Form 990 must be complete including all supplemental information and signatures. The IRS Form 990 MUST be signed on page 6 by an official of the federation or organization.  Smaller organizations that file a Form 990EZ may submit that document with pages 1 & 2 of the IRS Form 990. Under no other circumstances are IRS Forms 990EZ, 990PF or other comparable forms acceptable.

14. Local Eligibility IRS Form 990 information IRS Form 990 Requirements (cont.):  The IRS Form 990 and annual audit must cover the same fiscal period.  If revenue and expenses on the two documents differ, these amounts must be reconciled.  Page 4, IRS Form 990  Letter of reconciliation from CPA who completed the audit

15. Local Eligibility IRS Form 990 information  IRS Form 990 Required Calculations  Administrative and fundraising expenses shown on the application should be verified from the IRS Form 990 by adding line 14 (M&G) plus line 15 (fundraising) and dividing the total by line 12 (revenue).  Line 1c (government contributions) must be divided by line 12 (revenue) to verify that the charitable organization or federation received no more than 80% of its total support and revenue from government sources.  Line 12 (revenue) will verify whether or not an audit is required.  Check Box J to determine accrual or cash basis used to complete IRS Form 990.

16. Local Eligibility Must certify  Administrative and Fundraising expenses:  Administrative and fundraising expenses are either 25% or less of the organization’s or federation’s total revenue OR More than 25%. (Verify by adding line 14 (M&G) plus line 15 (fundraising) and dividing the total by line 12 (revenue) from IRS Form 990).  If more than 25%, Attachment F must be included providing a detailed justification of those expenses and a formal plan to reduce expenses to 25% or less.

17. Local Eligibility Must certify Has an active and responsible governing body directing the federation or organization whose members have no material conflict of interest and a majority of which serve without compensation. The organization prohibits the sale or lease of CFC contributor lists. Conducts publicity and promotional activities based upon its actual program and operations, that these activities are truthful and non-deceptive, include all material facts, and make no exaggerated or misleading claims.

18. Local Eligibility Must certify or provide  That the federation or organization effectively uses the funds contributed by federal personnel for its announced purposes.  Provides the governmental entity or state in which it was incorporated or charted. (Enter the entity or State)  Certifies that in preceding year it received no more than 80% of its total support and revenues from government sources. (Verified by 1c of IRS Form 990 divided by Line 12.)

19. Local Eligibility Must certify or provide  Annual Report  Certifies that it makes available to the public an annual report that includes:  a full description of the activities and services  identifies its directors or governing body  identifies its chief administrative personnel

20. Local Eligibility Must certify or provide  Annual Report (cont.)  Annual report must be included with the application  Must cover the fiscal year ending not more than 18 months prior to January of the campaign year to which the applicant is applying OR the preceding calendar year  This CFC attachment should include two items:  The annual report  Information about the terms of office for the applicant’s governing board’s officers and members PLUS the dates, times and places of the board meetings over the past year.

21. 25-Word Statements  Attachment H (25-Word Statement) must include:  Name of organization -- either legal name as registered with IRS or approved d.b.a.  Phone number  Web Site address  Legal name of organization (if listed under d.b.a. name)  Employee Identification number  Percent of administrative costs (From IRS Form 990)  25-Word description (Above mentioned requirements are not counted as part of 25-words)  Federations should include the 25 word statements for all member organizations.

22. General  Applicants should insure that their applications are complete upon submission. (This includes the correct time frames for attachments.)  All application information must be specific to the applicant federation or organization. Regional and/or national materials will not be accepted.

23. Local Federations Additional Criteria Certify or demonstrate that:  All member charities meet the eligibility criteria and provide a complete list of those member organizations it certifies. Full annual applications should be on file at the federation office. Note: LFCCs are encouraged to conduct random checks on local federation member organizations. Note: All members’ applications are submitted the first year a federation applies. LFCCs are encouraged by OPM to annually request copies of new member organizations in local federations.  The federation has at least 15 members listed with the federation. 25 word statements for each member organization must be provided.

24. Local Federations Additional Criteria Certify that:  Certifies it does not employ, in its CFC operations, services from private consultants, consulting firms, advertising agencies or similar businesses in a decision/policy making capacity.  Must include as part of the CFC application details regarding any membership dues and/or fees received by the federation from its members or affiliates as a service charge. In addition, all federations must include this information as part of the annual report they make available to the public.

25. Family Support & Youth Activities 5 CFR Part 950.204 (c)&(d) Commander Certification  Non-Profit, tax-exempt providing family service programs or youth activity programs to personnel in the Command.  High degree of Integrity/Contributions used for announced purposes.  Be directed by the base Non-Appropriated Fund Council or an active voluntary board.  Detailed annual budget with accounting procedures acceptable to an installation auditor and the Inspector General.  Practice of Nondiscrimination.  Annual Report which includes a full description of activities & accomplishments - available to the public upon request.

26. Appeals Process to LFCC  Denied applicants must be notified via registered or certified mail. (Return signed receipt.)  First appeal to LFCC must be in writing and received within 7 business days from the date of receipt of the initial LFCC decision or 14 calendar days from the date the decision is mailed whichever is earlier.  LFCC must consider all timely appeals and notify the appealing organization within a reasonable time period.  All LFCC denials of appeals must be sent via registered or certified mail. (Return signed receipt.)  Appeals may not be used to supplement original applications that had missing or outdated materials.

27. Appeals Process to OPM A local applicant which is unsuccessful in its appeal to the LFCC may appeal to the Director.  Appeal must be in writing.  Must be received by OPM within 10 business days of the date of receipt of the letter from the LFCC denying eligibility on appeal.  Must include a statement including the reason(s) why eligibility should be granted.  Must include a copy of the letter from the LFCC disapproving the original application.  Must include a copy of the organization's original appeal to the LFCC.  Must include a copy of the letter from the LFCC denying the appeal.  Appeals may not be used to supplement original applications that had missing or outdated materials.

28. Appeals Process to OPM Specific LFCC Information:  No brochures may be printed until all local appeals filed with OPM are resolved.  LFCC’s should contact OPM 21 calendar days after local appeals decisions have been issued.  BE SPECIFIC -- OPM issues technical reversals every year for the following:  Reasons for denial change from initial to appeal  Local organization was not properly informed (registered mail)  Blanket denial for federation (Members should all be considered individually if federation is denied)  Additional information may be requested by an LFCC but may not be used to determine eligibility.

29. Resources for Eligibility Issues  Office of Personnel Management, Office of CFC Operations:  Mara Patermaster and her staff  The web site at www.opm.gov/cfc  LFCC manual  Frequently asked questions  Regulations

30. THE END Thank you