[Federal Register Volume 60, Number 226 (Friday, November 24, 1995)]
[Rules and Regulations]
[Pages 57889-57900]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28715]
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OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 950
RIN 3206-AG50
Solicitation of Federal Civilian and Uniformed Service Personnel
for Contributions to Private Voluntary Organizations
AGENCY: Office of Personnel Management.
ACTION: Final rule.
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SUMMARY: The Office of Personnel Management (OPM) is issuing final
regulations governing the solicitation of Federal civilian and
uniformed personnel for contribution to private voluntary organizations
under the authority of Executive Order 12353 (March 23, 1982). Combined
Federal Campaign (CFC) participants and OPM's Inspector General have
indicated a need for clarifying or changing current procedures for
soliciting Federal employees in the workplace. These changes improve
procedural operations and accountability for the annual charitable
solicitation campaign conducted by Federal personnel in their
Government workplaces and set forth ground rules under which charitable
organizations may receive contributions from Federal personnel through
the CFC.
EFFECTIVE DATE: November 24, 1995.
FOR FURTHER INFORMATION CONTACT:
Jeffrey C. Lee, 202-606-2564.
SUPPLEMENTARY INFORMATION: These regulations are to implement a number
of procedural changes to the operations of the Combined Federal
Campaign (CFC). The final regulations contain most of the provisions
proposed in the February 16, 1995 Federal Register; they include, but
are not limited to:
More clearly defining the scope and meaning of workplace
solicitations in the Federal Government;
Identification of the circumstances where the Director may
authorize solicitations of Federal employees in the workplace outside
of the CFC;
Clarification of procedural requirements for charitable
organizations seeking participation in the CFC;
Expanding local eligibility by defining and enumerating criteria
for organizations that provide services on a statewide basis;
Removing all general designation options not required by statute;
Expanding the solicitation methods and the pool of potential
donors.
Other provisions contained in the proposed regulations were not
retained in the final version. Several hundred comments were received
and considered. The following provisions received overwhelming
objections and were deleted:
Expanding the duration of a payroll allotment to an unlimited term
or ``perpetual pledge'' proved to be administratively undesirable and
potentially adverse;
[[Page 57890]]
Authorizing a fee of 15 percent of undesignated funds to the PCFO
proved to create an appearance of conflict of interest;
Automatic ineligibility for organizations that exceed the 25
percent administrative and fundraising expenses cap for more than 2
years proved to be unreasonable given the totality of circumstances.
These regulations are consistent with the restrictions placed on
OPM by section 618 of the Treasury, Postal Service, and General
Government Appropriations Act for 1988.
Regulatory Flexibility Act
I certify that these regulations will not have a significant
economic impact on a substantial number of small entities because it
will only effect those charitable organizations that participate in the
CFC.
Paperwork Reduction Act
The collection of information requirements in this part have been
approved by the Office of Management and Budget and assigned OMB
control number 3206-0131.
List of Subjects in 5 CFR Part 950
Administrative practice and procedures, Charitable contributions,
Government employee, Military personnel, Nonprofit organizations,
Reporting and recordkeeping requirements.
U.S. Office of Personnel Management.
Lorraine A. Green,
Deputy Director.
Accordingly, OPM is revising 5 CFR part 950 as follows:
PART 950--SOLICITATION OF FEDERAL CIVILIAN AND UNIFORMED SERVICE
PERSONNEL FOR CONTRIBUTIONS TO PRIVATE VOLUNTARY ORGANIZATIONS
Subpart A--General Provisions
Sec.
950.101 Definitions.
950.102 Scope of the Combined Federal Campaign.
950.103 Establishing a local campaign.
950.104 Local Federal Coordinating Committee responsibilities.
950.105 Principal Combined Fund Organization (PCFO)
responsibilities.
950.106 PCFO expense recovery.
950.107 Lack of a qualified PCFO.
950.108 Preventing coercive activity.
950.109 Avoidance of conflict of interest.
950.110 Prohibited discrimination.
Subpart B--Eligibility Provisions
950.201 National list eligibility.
950.202 National list eligibility requirements.
950.203 Public accountability standards.
950.204 Local list eligibility.
950.205 Appeals.
Subpart C--Federations
950.301 National federations eligibility.
950.302 Responsibilities of national federations.
950.303 Local federations eligibility.
950.304 Responsibilities of local federations.
Subpart D--Campaign Materials
950.401 Campaign and publicity materials.
950.402 Pledge card.
950.403 Penalties.
Subpart E--Undesignated Funds
950.501 Applicability.
Subpart F--Miscellaneous Provisions
950.601 Release of contributor names.
950.602 Solicitation methods.
950.603 Sanctions.
950.604 Records retention.
Subpart G--DoD Overseas Campaign
950.701 DoD overseas campaign.
Subpart H--CFC Timbetable
950.801 Campaign schedule.
Subpart I--Payroll Withholding
950.901 Payroll allotment.
Authority: E.O. 12353 (March 23, 1982), 47 FR 12785 (March 25,
1982). 3 CFR, 1982 Comp., p. 139. E.O. 12404 (February 10, 1983), 48
FR 6685 (February 15, 1983), Pub. L. 100-202, and Pub. L. 102-393 (5
U.S.C. 1101 Note).
Subpart A--General Provisions
Sec. 950.101 Definitions.
Administrative Expenses, PCFO Expenses, Campaign Expenses, or CFC
Expenses means all documented expenses identified in the PCFO
application relating to the conduct of a local CFC and approved by the
LFCC in accordance with these regulations.
Campaign Year means the calendar year in which Federal employees
are solicited for contributions to the Combined Federal Campaign.
Combined Federal Campaign or Campaign or CFC means the charitable
fundraising program established and administered by the Director of the
Office of Personnel Management (OPM) pursuant to Executive Order No.
12353, as amended by Executive Order No. 12404, and all subsidiary
units of such program.
Designated Funds means those contributions which the contributor
has designated to a specific charitable organization(s), federation(s),
or general option(s).
Director means the Director of the Office of Personnel Management
or his/her designee.
Domestic Area means the several United States, the District of
Columbia, the Commonwealth of Puerto Rico, and the United States Virgin
Islands.
Employee means any person employed by the Government of the United
States or any branch, unit, or instrumentality thereof, including
persons in the civil service, uniformed service, foreign service, and
the postal service.
Federation or Federated Group means a group of voluntary charitable
human health and welfare organizations created to supply common
fundraising, administrative, and management services to its constituent
members.
International General Designation Option means that the donor
wishes that his or her gift be distributed to all of the international
organizations listed in the International Section of the campaign
brochure in the same proportion as all of the international
organizations received designations in the local CFC. This option will
have the code IIII.
International Organization means a charitable organization that
provides services either exclusively or in a substantial preponderance
to persons in non-domestic areas.
Local Federal Coordinating Committee or LFCC means the group of
Federal officials designated by the Director to conduct the CFC in a
particular community.
Organization or Charitable Organization means a private, non-
profit, philanthropic, human health and welfare organization.
Overseas Area means the Department of Defense (DoD) Overseas
Campaign which includes all areas other than those included in the
domestic area.
Principal Combined Fund Organization or PCFO means the federated
group or combination of groups, or a charitable organization selected
by the LFCC to administer the local campaign under the direction and
control of the LFCC and the Director.
Solicitation means any action requesting money, either by cash,
check or payroll deduction, on behalf of charitable organizations.
Undesignated Funds means those contributions which the contributor
has not designated to a specific charitable organization(s),
federation(s), or the International General Designation Option.
Sec. 950.102 Scope of the Combined Federal Campaign.
(a) The CFC is the only authorized solicitation of employees in the
Federal workplace on behalf of charitable organizations. A campaign may
be conducted during a 6 week period, as determined by the LFCC, from
September 1 through December 15 at
[[Page 57891]]
every Federal agency in the campaign community in accordance with these
regulations. Except as provided in this section, no other solicitation
on behalf of charitable organizations may be conducted in the Federal
workplace. Upon written request, the Director may grant permission for
solicitations of Federal employees, outside the CFC, in support of
victims in cases of emergencies and disasters. Emergencies and
disasters are defined as any hurricane, tornado storm, flood, high
water, wind-driven water, tidal wave, tsunami, earthquake, volcanic
eruption, landslide, mudslide, snowstorm, drought, fire, explosion, or
other catastrophe in any part of the world. No such permission will be
granted for such solicitations during the period September 1 through
December 15.
(b) These regulations do not apply to the collection of gifts-in-
kind, such as food, clothing and toys, or to the solicitation of
Federal employees outside of the Federal workplace as defined by the
applicable Agency Head consistent with General Services Administration
regulations and any other applicable laws or regulations.
(c) The Director exercises general supervision over all operations
of the CFC, and takes all necessary steps to ensure the achievement of
campaign objectives. Any disputes relating to the interpretation or
implementation of this part may be submitted to the Director for
resolution. The decisions of the Director are final for administrative
purposes.
(d) Heads of departments or agencies may establish policies and
procedures applicable to solicitations conducted by organizations
composed of civilian employees or members of the uniformed services
among their own members for organizational support or for the benefit
of welfare funds for their members. Such solicitations are not subject
to these regulations, and therefore do not require permission of the
Director.
Sec. 950.103 Establishing a local campaign.
(a) The Director establishes and maintains the official list of
local campaigns and the geographical area each covers. There is no
prerequisite regarding the Federal employee population needed to
establish or maintain a CFC. However, rather than establishing or
maintaining small campaigns, OPM encourages mergers and expansions of
campaigns to promote efficiency and economy.
(b) The Director establishes an LFCC to govern the conduct of the
local CFC. The LFCC will, whenever possible, be comprised of members of
local Federal inter-agency organizations, such as Federal Executive
Boards, Federal Executive Associations, Federal Business Associations
or, in the absence of such organizations, self-organized associations
of local Federal officials. These groups will include local Federal
agency heads or their representatives. It may also include
representatives of employee unions and other employee groups. Rotation
of the LFCC Chair position among the LFCC members is encouraged. For
continuity, each LFCC should appoint a Vice Chair who would be expected
to serve at the conclusion of the Chair's term.
(c) The agency head at each Federal installation within a campaign
area shall:
(1) Become familiar with all CFC regulations,
(2) Cooperate with the representatives of the LFCC and PCFO in
organizing and conducting the campaign,
(3) Initiate official campaigns within their offices or
installations and provide support for the campaign, and
(4) Assure the campaign is conducted in accordance with these
regulations.
(d) Once a campaign has been established, agency heads may not
discontinue solicitation of Federal employees within their organization
without the written approval of the Director.
(e) Any change in the geographical boundaries of local campaigns
may be made only upon the express written permission of the Director.
(f) Each year the LFCC must establish the 6 week time period to
solicit employees. Each campaign should not be conducted for more than
a 6 week period. However, in unusual circumstances the LFCC may extend
the campaign as local conditions require. The solicitation may not
begin before September 1 and in no event will it extend beyond December
15 of each year.
(g) Current Federal civilian and active duty military employees may
be solicited for contributions using payroll deduction, checks, money
orders or cash. Contractor personnel, credit union employees and other
persons employed on Federal premises, as well as retired Federal
employees, may make single contributions to the CFC through check or
money order. These non-Federal employees may not be solicited, but are
to be provided the opportunity to participate in the CFC.
(h) A Federal employee whose official duty station is outside the
geographic boundaries of an established CFC may not be solicited in
that CFC. A Federal employee may participate in a particular CFC only
if that employee's official duty station is located within the
geographic boundaries of that CFC.
Sec. 950.104 Local Federal Coordinating Committee responsibilities.
(a) All members of the LFCC should develop an understanding of
campaign regulations and procedures. The LFCC is the central point of
information regarding the CFC among Federal employees.
(b) The responsibilities of the LFCC include, but are not limited
to, the following:
(1) Maintaining minutes of LFCC meetings and responding promptly to
any request for information from the Director.
(2) Naming a campaign chairperson and notifying the Director when
the chairperson changes.
(3) Determining the eligibility of local organizations that apply
to participate in the local campaign. This is the exclusive
responsibility of the LFCC and may not be delegated to the PCFO.
(4) Ensuring that the list of charities determined by the Director
to be nationally eligible to participate in all local campaigns is
reproduced in the local brochure in accordance with OPM instructions.
(5) Ensuring that the local brochure and pledge card are produced
in accordance with these regulations and instructions from the
Director.
(6) Encouraging local Federal agencies to appoint loaned executives
to assist in the campaign. Federal agency heads are encouraged to grant
administrative leave to all loaned executives appointed to assist in
the conduct of the CFC. Federal loaned executives are prohibited from
working on non-CFC fundraising activities during duty hours.
(7) Establishing a network of employee keyworkers and volunteers
and participating in interagency briefing sessions and kick-off
meetings.
(8) Ensuring that, to the extent reasonably possible, every
employee is given the opportunity to participate in the CFC, and
ensuring employee designations are honored.
(9) Ensuring that the PCFO includes in keyworker training
instructions to encourage employees to designate the charitable
organizations they wish to receive their donations and specific
information on how general designation monies are distributed.
(10) Ensuring that contributions are distributed in accordance with
the method described in these regulations.
(11) Ensuring that no employee is coerced in any way to participate
in the campaign.
(12) Bringing allegations of coercion to the attention of the
Director and the
[[Page 57892]]
employee's agency and providing a mechanism to review employee
complaints of undue pressure and coercion in Federal fundraising.
Federal agencies shall provide procedures and assign responsibility for
the investigation of such complaints. Personnel offices shall be
responsible for informing employees of the proper channels for pursuing
such complaints.
(13) Notifying the Director of any significant problems or
controversies concerning the campaign that the LFCC cannot resolve by
applying these regulations. The LFCC must abide by the Director's
decisions on all matters concerning the campaign.
(14) Ensuring the PCFO does not use the services of consulting
firms, advertising firms or similar business organizations to perform
the policy-making or decisionmaking functions in the CFC. A PCFO may,
however, contract with entities or individuals such as banks,
accountants, lawyers, and other vendors of goods and/or services to
assist in accomplishing its administrative tasks.
(15) Ensuring that the activities and functions required of the
PCFO are kept separate from any non-CFC operations of the organization.
The LFCC must verify that the PCFO keeps and maintains CFC financial
records and interest bearing bank accounts separate from the PCFO's
non-CFC financial records and bank accounts.
(16) Monitoring the work of the PCFO, and inspecting closely the
annual audit required of the PCFO pursuant to Sec. 950.105(d)(9) for
compliance with these regulations.
(17) Authorizing to the PCFO reimbursement of only those campaign
expenses that are legitimate CFC costs and are adequately documented.
Total reimbursable expenses may not exceed the approved campaign budget
by more than 10 percent.
(c) The LFCC must annually solicit applications for the PCFO via
public notice no later than February 1 of each calendar year. The PCFO
application period must be open a minimum of 14 calendar days. Cost
incurred in providing the public notice should be added to the PCFO
budget for the current campaign year as an administrative cost. The
LFCC shall select a PCFO to act as its fiscal agent and campaign
coordinator on the basis of presentations made to the local committee
as described in Sec. 950.105. The LFCC shall consider the efficiency
and effectiveness of the campaign as the primary factors in selecting a
PCFO.
Sec. 950.105 Principal Combined Fund Organization (PCFO)
responsibilities.
(a) Only federations, charitable organizations or combinations
thereof may serve as the PCFO.
(b) the primary goal of the PCFO is to conduct an effective and
efficient campaign in a fair and even-handed manner aimed at collecting
the greatest amount of charitable contributions possible. Therefore,
PCFO's should afford federated groups and agencies with representatives
in the local campaign area adequate opportunity to offer suggestions
relating to the operation of the campaign, printed campaign material,
and training. If requested in writing to either the LFCC or PCFO,
federated groups and agencies must be given the opportunity to attend
all campaign meetings, kick-off events, and training sessions. The PCFO
must provide representatives of federated groups, agencies and the
general public the opportunity to review at the PCFO office all
reports, budgets, audits, training materials, and other records
pertaining to the CFC.
(c) Any federation, charitable organization or combinations thereof
wishing to be selected for the PCFO must submit a timely application in
accordance with the deadline set by the LFCC, that includes:
(1) A written campaign plan sufficient in detail to allow the LFCC
to determine if the applicant could administer an efficient and
effective CFC. The campaign plan must include a CFC budget that details
all estimated costs required to operate the CFC. The budget may not be
based on the percentage of funds raised in the local campaign.
(2) A statement signed by the applicant's local director or
equivalent pledging to:
(i) administer the CFC fairly and equitably,
(ii) conduct campaign operations, such as training, kick-off and
other events, and fiscal operations, such as banking, auditing,
reporting and distribution separate from the applicant's non-CFC
operations, and
(iii) abide by the directions, decisions, and supervision of the
LFCC and/or Director.
(3) A statement signed by the applicant's local director or
equivalent acknowledging the applicant is subject to the provisions of
Sec. 950.403 and Sec. 950.603.
(d) The specific responsibilities of the PCFO include but are not
limited to:
(1) Honoring employee designations.
(2) Helping to ensure no employee is coerced in any way regarding
participation in the campaign and that allegations of coercion are
brought to the attention of the appropriate Federal officials.
(3) Training agency loaned executives, coordinators, and keyworkers
in the methods of non-coercive solicitation. This training must be
completely separate from training given for other types of charitable
campaign drives. Additionally, keyworkers should be trained to check to
ensure the pledge card is legible on each copy, verify arithmetical
calculations, and ensure the block on the pledge card concerning the
release of the employee's name and address is completed fully.
(4) Ensuring that no employee is questioned in any way as to his or
her designation or its amount except by keyworkers, loaned executives,
or other non-supervisory Federal personnel.
(5) Preparing pledge cards and brochures that are consistent with
these regulations and instructions by the Director.
(6) Honoring the request of employees who indicate on the pledge
card that their names not be released to the organization(s) that they
designate.
(7) Maintaining a detailed schedule of its actual CFC
administrative expenses with, to the extent possible, itemized receipts
for the expenses. The expense schedule must be in a format that can be
reconciled to the PCFO's budget submitted in accordance with paragraph
(c)(1) of this section.
(8) Keeping and maintaining CFC financial records and interest-
bearing bank accounts separate from the PCFO's internal organizational
financial records and bank accounts. Interest earned on all CFC
accounts must be distributed in the same manner as undesignated funds
pursuant to Sec. 950.501. All financial records and bank accounts must
be kept in accordance with generally accepted accounting principles.
(9) Submitting to the LFCC an audit of collections and
disbursements for each campaign managed no later than June 15 of the
year in which the last disbursement is made. For example, for the 1994
CFC the audit of the 1994 campaign must be submitted to the LFCC no
later than June 15, 1996. The audit must be performed by an independent
certified public accountant in accordance with generally accepted
auditing standards and OPM guidance.
(10) Absorbing the cost of any reprinting of campaign materials due
to its noncompliance with these regulations, embezzlement, or loss of
funds. A PCFO must also absorb campaign costs exceeding 10 percent of
the approved budget.
(11) Designing and implementing CFC awards programs which are
accessible to all employees and which reflect the
[[Page 57893]]
Government's commitment to non-coercion. Awards to Federal agencies or
employees by individual federations or organizations for CFC
accomplishments is prohibited.
(12) Producing any documents or information requested by the LFCC
and/or the Director within 10 calendar days of the receipt of that
request.
(13) Responding in a timely and appropriate manner to reasonable
inquiries from participating organizations.
(e) A federated group(s) or charitable organization may be barred
from serving as PCFO for 1 year if determined by the Director to have
violated these regulations. A federated group(s) or charitable
organization serving as PCFO will be notified of the Director's intent
to bar and have an opportunity to submit written comments prior to its
becoming effective. The Director's decision as to debarment shall be
communicated in writing to the LFCC and PCFO, and the LFCC shall not
consider an application from such group(s) or organization to serve as
the PCFO during terms of debarment.
Sec. 950.106 PCFO expense recovery.
(a) The PCFO shall recover from the gross receipts of the campaign
its expenses, approved by the LFCC, reflecting the actual costs of
administering the local campaign. The amount recovered for campaign
expenses shall not exceed 10 percent of the estimated budget submitted
pursuant to Sec. 950.105(c)(1) unless approved by the Director.
(b) The PCFO may only recover campaign expenses from receipts
collected for that campaign year. Expenses incurred preparing for and
conducting the CFC cannot be recovered from receipts collected in the
previous year's campaign. The PCFO may absorb the costs associated with
conducting the campaign from its own funds and be reimbursed, or obtain
a commercial loan to pay for costs associated with conducting the
campaign. If the commercial loan option is used, the amount of a
reasonable rate of interest is an allowable campaign expense, subject
to the approval of the LFCC when the PCFO budget is submitted.
(c) The campaign expenses will be shared proportionately by all the
recipient organizations reflecting their percentage share of gross
campaign receipts.
Sec. 950.107 Lack of a qualified PCFO.
There is no authority in statute or regulation for an LFCC or any
Federal official or employee to assume the duties and responsibilities
of the PCFO. In the event that there is no qualified PCFO, the LFCC
Chairman will promptly inform the Director in writing. The Director
will assist the LFCC in merging the campaign with an adjacent campaign
that has a qualified PCFO or identifying an eligible organization to
function as the campaign's PCFO. If the LFCC's of the adjacent
campaigns elect not to merge and a qualified PCFO cannot be found, the
local CFC will be canceled. No workplace solicitation of any Federal
employee in the campaign area is authorized and payroll allotments
cannot be accepted and honored during the duration of the cancellation
of the CFC.
Sec. 950.108 Preventing coercive activity.
True voluntary giving is fundamental to Federal fundraising
activities. Actions that do not allow free choices or create the
appearance employees do not have a free choice to give or not to give,
or to publicize their gifts or to keep them confidential, are contrary
to Federal fundraising policy. Activities contrary to the non-coercive
intent of Federal fundraising policy are not permitted in campaigns.
They include, but are not limited to:
(a) Solicitation of employees by their supervisor or by any
individual in their supervisory chain of command. This does not
prohibit the head of an agency to perform the usual activities
associated with the campaign kick-off and to demonstrate his or her
support of the CFC in employee newsletters or other routine
communications with the Federal employees.
(b) Supervisory inquiries about whether an employee chose to
participate or not to participate or the amount of an employee's
donation. Supervisors may be given nothing more than summary
information about the major units that they supervise.
(c) Setting of 100 percent participation goals.
(d) Establishing personal dollar goals and quotas.
(e) Developing and using lists of non-contributors.
(f) Providing and using contributor lists for purposes other than
the routine collection and forwarding of contributions and allotments,
and as allowed under Sec. 950.601.
(g) Using as a factor in a supervisor's performance appraisal the
results of the solicitation in the supervisor's unit or organization.
Sec. 950.109 Avoidance of conflict of interest.
Any Federal employee who serves on the LFCC, on the eligibility
committee, or as a Federal agency fundraising program coordinator, must
not participate in any decisions where, because of membership on the
board or other affiliation with a charitable organization, there could
be or appear to be a conflict of interest under any statute,
regulation, Executive order, or applicable agency standards of conduct.
Under no circumstances may an LFCC member affiliated with an
organization applying for inclusion on the local list, participate in
the eligibility determinations.
Sec. 950.110 Prohibited discrimination.
Discrimination for or against any individual or group on account of
race, color, religion, sex, national origin, age, handicap, or
political affiliation is prohibited in all aspects of the management
and the execution of the CFC. Nothing herein denies eligibility to any
organization, which is otherwise eligible under this part to
participate in the CFC, merely because such organization is organized
by, on behalf of, or to serve persons of a particular race, color,
religion, sex, national origin, age, or handicap.
Subpart B--Eligibility Provisions
Sec. 950.201 National list eligibility.
(a) The Director shall annually:
(1) Determine the timetable and other procedures regarding
application for inclusion on the national list,
(2) Determine which organizations among those that apply qualify to
be part of the national list and then provide the national list of
qualified organizations to all local campaigns.
(b) The national list shall be reproduced in all local brochures in
accordance with these regulations. The list will include each
organization's national list number code. These number codes must be
faithfully reproduced in the local brochures.
(c) An organization on the national list may elect to be removed
from the national list and have its local affiliate or subunit listed
on the local list of organizations in its stead. For the local
affiliate or subunit to be listed in lieu of the organization on the
national list, the following procedures must be followed:
(1) The organization must send a letter to the local affiliate or
subunit in that particular CFC waiving its listing on the national list
so that its eligible local affiliate or subunit on the local list of
organizations will appear as that organization's sole listing in the
CFC brochure.
(2) The local affiliate or subunit will include in its application
to the LFCC a copy of the letter authorizing the removal of the
organization from the national list as well as all the required
[[Page 57894]]
materials for completing a local organization application.
(3) Upon finding the local organization eligible, the waiver letter
from the organization on the national list authorizes the LFCC to
delete that organization from the national list.
Sec. 950.202 National list eligibility requirements.
All organizations seeking national list eligibility must:
(a) Certify that it provides or conducts real services, benefits,
assistance, or program activities, in 15 or more different states or a
foreign country over the 3 year period immediately preceding the start
of the year involved. This requirement cannot be met on the sole basis
of services provided through an ``800'' telephone number or by sending
materials via the U.S. Postal Service or a combination thereof. A
schedule listing those states (minimum 15) or the foreign countries
(minimum 1) where the program activities have been provided and a
detailed description of the activities in each state or foreign country
must be included with the application. While it is not expected that an
organization maintain an office in each state or foreign country, a
clear showing must be made of the actual services, benefits, assistance
or activities provided in each state or foreign country.
(b) Certify that it is recognized by the Internal Revenue Service
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. A copy of the letter from the
Internal Revenue Service granting tax-exempt status under the Internal
Revenue Code, 26 U.S.C. 501(c)(3), must be included with the
application.
(c) Certify that the organization has no expenses connected with
lobbying and attempts to influence voting or legislation at the local,
State, or Federal level or alternatively, that those expenses would
classify the organization as a tax-exempt organization under 26 U.S.C.
501(h).
Sec. 950.203 Public accountability standards.
(a) To insure organizations wishing to solicit donations from
Federal employees in the workplace are portraying accurately their
programs and benefits, several standards and certifications must be met
annually by each organization seeking national list eligibility. Each
organization wishing to participate must:
(1) Certify that the organization is a human health and welfare
organization providing services, benefits, or assistance to, or
conducting activities affecting, human health and welfare. The
organization's application must provide documentation describing the
human health and welfare benefits provided by the organization within
the previous year.
(2) Certify that it accounts for its funds in accordance with
generally accepted accounting principles and that an audit of the
organization's fiscal operations is completed annually by an
independent certified public accountant in accordance with generally
accepted auditing standards. Such audit must show expenses by function.
A copy of the organization's most recent annual audit must be included
with the application. The audit must cover the fiscal year ending not
more than 18 months prior to the January of the campaign year to which
the organization is applying. For example, the audit included in the
1994 application must cover the fiscal period ending on or after June
30, 1992.
(3) Provide a completed copy of the organization's IRS Form 990,
including signature, with the application regardless of whether or not
the IRS requires the organization to file this form. IRS Forms 990EZ,
990PF, and comparable forms are not acceptable substitutes. However,
smaller organizations that file the Form 990EZ may submit the 990EZ
with pages 1 and 2 of the Form 990 attached. The IRS Form 990 and audit
must cover the same fiscal period and, if revenue and expenses on the
two documents differ, these amounts must be reconciled in an
accompanying signed statement by the certified public accountant who
completed the audit.
(4) Provide a computation of the organization's percentage of total
support and revenue spent on administrative and fundraising. This
percentage shall be computed from information on the IRS Form 990,
submitted pursuant to Sec. 950.203(a)(3), by adding the amount spent on
``management and general'' (line 14) to ``fundraising'' (line 15) and
then dividing the sum by ``total revenue'' (line 12).
(i) If an organization's administrative and fundraising expenses
exceed 25 percent of its total support and revenue, it must certify
that its actual expenses for administration and fundraising are
reasonable under all the circumstances presented. It must provide an
explanation with its application and also include a formal plan to
reduce these expenses below 25 percent.
(ii) The Director may reject any application from an organization
with fundraising and administrative expenses in excess of 25 percent of
total support and revenue, unless the organization demonstrates to the
satisfaction of the Director that its actual expenses for those
purposes and its plan to reduce them are reasonable under the
circumstances.
(5) Certify that the organization is directed by an active and
responsible governing body whose members have no material conflict of
interest and, a majority of which serve without compensation.
(6) Certify that the organization's fundraising practices prohibit
the sale or lease of its CFC contributor lists.
(7) Certify that its publicity and promotional activities are based
upon its actual program and operations, are truthful and non-deceptive,
and make no exaggerated or misleading claims.
(8) Certify that contributions are effectively used for the
announced purposes of the charitable organization.
(9) Certify under which governmental entity the charitable
organization is chartered, incorporated or organized (congressionally
chartered or the state in which it is registered).
(10) Certify that the organization has received at least 20 percent
of its total support and revenues from public sources as computed by
adding lines 1a and 1b and dividing by line 12 from the IRS Form 990
submitted pursuant to Sec. 950.203(a)(3).
(11) Certify that the organization prepares and makes available to
the public upon request an annual report that includes a full
description of the organization's activities and supporting services
and identifies its directors and chief administrative personnel. A copy
of the organization's annual report must be included with the
application. The annual report must cover the fiscal year ending not
more than 18 months prior to January of the campaign year to which the
organization is applying. A more frequently published document, such as
a quarterly newsletter, may be used to meet this requirement provided
that such document is available to the general public upon request and
describes the organization's activities and supporting services and
identifies its directors and chief administrative personnel.
(12) Provide a statement that the certifying official is authorized
by the organization to certify and affirm all statements required for
inclusion on the national list.
(13) Provide a statement in 25 words or less describing the program
activities of the charitable organization. The 25-word statement need
not include the organization's name. In addition, organizations must
provide a telephone number, dedicated solely for the
[[Page 57895]]
organization's use, through which the donors may receive further
information about the organization. Except as provided in
Sec. 950.401(k), this information will be included in the campaign
brochure along with the organization's administrative and fundraising
percentage computed pursuant to Sec. 950.203(a)(3).
(b) The Director shall review these applications for accuracy,
completeness, and compliance with these regulations. Failure to supply
any of this information may be judged a failure to comply with the
requirements of public accountability, and the charitable organization
may be ruled ineligible for inclusion on the national list.
(c) The Director may request such additional information as the
Director deems necessary to complete these reviews. An organization
that fails to comply with such requests within 10 calendar days from
receipt of the request may be judged ineligible.
(d) The required certifications and documentation must have been
completed and submitted prior to the application filing deadline.
Applications received that are incomplete may not be perfected during
the appeal process described in Sec. 950.205.
(e) The Director may waive any of these standards and
certifications upon a showing of extenuating circumstances.
Sec. 950.204 Local list eligibility.
(a) The LFCC shall establish an annual application process
consistent with these regulations for organizations that wish to be
listed in the local brochure.
(b) The requirements for an organization to be listed in the local
brochure shall include the following:
(1) An organization must demonstrate to the satisfaction of the
LFCC, that it has a substantial local presence in the geographical area
covered by the local campaign, a substantial local presence in the
geographical area covered by an adjacent local campaign, or substantial
statewide presence.
(i) Substantial local presence is defined as a staffed facility,
office or portion of a residence dedicated exclusively to that
organization, available to members of the public seeking its services
or benefits. The facility must be open at least 15 hours a week and
have a telephone dedicated exclusively to the organization. The office
may be staffed by volunteers. Substantial local presence cannot be met
on the basis of services provided solely through an ``800'' telephone
number or the U.S. Postal Service or a combination thereof.
(ii) Substantial statewide presence is defined as providing or
conducting real services, benefits, assistance or program activities
covering 30 percent of a state's geographic boundaries or providing or
conducting real services, benefits, assistance or program activities
affecting 30 percent of a state's population. Substantial statewide
presence cannot be met on the basis of services provided solely through
an ``800'' telephone number or the U.S. Postal Service or a combination
thereof.
(2) An organization seeking local eligibility also must meet all
requirements for national list eligibility in Sec. 950.202 and
Sec. 950.203, with the following exceptions:
(i) Local charitable organizations are not required to have
provided services or benefits in 15 states or a foreign country over
the prior 3 years.
(ii) Local charitable organizations with annual revenue less than
$100,000 are not required to be audited in accordance with generally
accepted auditing standards and, hence, are not required to submit an
audit report. Annual revenue is determined by line 12 of the IRS Form
990 covering the organization's most recent fiscal year ending not more
than 18 months prior to the January of the campaign year to which the
organization is applying.
(iii) Organizations seeking local eligibility in Puerto Rico or the
U.S. Virgin Islands are exempt from the requirements of
Sec. 950.202(b). However, said organizations must include in their
applications, the appropriate local forms demonstrating their status as
charitable organizations.
(c) Family support and youth activities certified by the commander
of a military installation as meeting the eligibility criteria
contained in Sec. 950.204(d) may appear on the list of local
organizations and be supported from CFC funds. Family support and youth
activities may participate in the CFC as a member of a federation at
the discretion of the certifying commander.
(d) A family support and youth activity must:
(1) Be a nonprofit, tax-exempt organization that provides family
service programs or youth activity programs to personnel in the
Command. The activity must not receive a majority of its financial
support from appropriated funds.
(2) Have a high degree of integrity and responsibility in the
conduct of their affairs. Contributions received must be used
effectively for the announced purposes of the organization.
(3) Be directed by the base Non-Appropriated Fund Council or an
active voluntary board of directors which serves without compensation
and holds regular meetings.
(4) Conduct its fiscal operations in accordance with a detailed
annual budget, prepared and approved at the beginning of the fiscal
year. Any significant variations from the approved budget must have
prior authorization from the Non-Appropriated Fund Council or the
directors. The family support and youth activities must have accounting
procedures acceptable to an installation auditor and the inspector
general.
(5) Have a policy and practice of nondiscrimination on the basis of
race, color, religion, sex or national origin applicable to persons
served by the organization.
(6) Prepare an annual report which includes a full description of
the organization's activities and accomplishments. These reports must
be made available to the public upon request.
(e) Local eligibility determinations. Within 15 business days after
the closing date of the application period, the LFCC shall communicate
its eligibility decisions via facsimile or U.S. Postal Service. Denial
of the application by the LFCC must be sent via U.S. Postal Service
certified or registered mail with a return receipt. Approvals may be
sent via U.S. Postal Service regular first class mail or facsimile.
LFCC's may authorize PCFO's to release eligibility determinations to
applicant organizations via telephone. This has no effect on the
deadline for LFCC's to receive local appeals. Applicants denied
eligibility may appeal in accordance with Sec. 950.205.
(f) No LFCC may print the campaign brochure while there are appeals
of eligibility decisions from their campaign pending with the Director.
LFCC's are obligated to check with OPM 21 calendar days after the
mailing of the local appeal decision as to whether the Director is on
notice of a pending timely appeal.
Sec. 950.205 Appeals.
(a) Organizations who apply and are denied eligibility for
inclusion on the national list will be notified of the Director's
decision by registered or certified mail of the U.S. Postal Service.
Organizations may appeal the Director's decision by submitting a
written request to reconsider the denial to the Director. This request
must be received within 10 business days from the date of receipt of
the Director's decision to deny eligibility and shall be limited to
those facts justifying the reversal of the original decision. Requests
for reconsideration may not be used to
[[Page 57896]]
supplement applications that had missing or outdated documents, and any
such documents submitted with the request for reconsideration will not
be considered.
(b) Applicants denied listing in the local brochure must first
appeal in writing to the LFCC to reconsider its original decision. Such
an appeal must be received by the LFCC within 7 business days from the
date of receipt of the initial LFCC decision or 14 calendar days from
the date the decision was mailed, whichever is earlier. The LFCC must
consider all timely appeals and notify the appealing organization
within a reasonable time period. Denial of the appeal by the LFCC must
be sent via U.S. Postal Service certified or registered mail with a
return receipt. Approval of local appeals may be sent via U.S. Postal
Service regular first class mail or facsimile.
(c) A local applicant which is unsuccessful in its appeal to the
LFCC may appeal to the Director. All appeals must:
(1) Be in writing;
(2) Be received by the Director within 10 business days of the date
of receipt of the letter from the LFCC denying eligibility on appeal;
(3) Include a statement explaining the reason(s) why eligibility
should be granted;
(4) Include a copy of the letter from the LFCC disapproving the
original application, a copy of the organization's appeal to the LFCC,
and a copy of the letter from the LFCC denying the appeal.
(d) If an organization fails to file a timely application or a
timely appeal of an adverse eligibility determination in accordance
with these regulations, such application or appeal to the Director will
be dismissed as untimely.
(e) Appeals to the Director may not be used to supplement original
applications that had missing or outdated documents. Any such
supplemental documents will not be considered. Such appeals shall be
limited to those facts justifying the reversal of the original
decision.
(f) The Director's decision is final for administrative purposes.
Subpart C--Federations
Sec. 950.301 National federations eligibility.
(a) The Director may recognize national federations that conform to
the requirements and are eligible to receive designations. The Director
may from time to time place a moratorium on the recognition of national
federations.
(b) By applying for inclusion in the CFC, federations consent to
allow the Director complete access to it and its members' CFC books and
records and to respond to requests for information by the Director.
(c) An organization may apply to the Director for inclusion as a
national federation to participate in the CFC if the applicant has, as
members of its proposed federation, 15 or more charitable organizations
that meet the eligibility criteria of Sec. 950.202 and Sec. 950.203.
The initial year an organization applies for federation status, it must
submit the applications of all its proposed member organizations in
addition to the federation application. Federations must re-establish
eligibility each year, however, the applications of its member
organizations need not accompany the annual federation application once
an organization has obtained federation status, unless requested by the
Director.
(d) After an organization has been granted federation status, it
may certify that its member organizations meet all eligibility criteria
of Sec. 950.202 and Sec. 950.203 to be included on the national list.
Federation status in a prior campaign is not a guarantee of federation
status in a subsequent campaign. Failure to meet minimum federation
eligibility requirements shall not be deemed to be a decertification
subject to a hearing on the record.
(e) An applicant for national federation status must annually
certify and/or demonstrate:
(1) That all member organizations seeking participation in the CFC
are qualified for inclusion on the national list. Applicants must
provide a complete list of those member organizations it certified.
(2) That its financial records, practices and procedures conform to
generally accepted accounting principles and that it is annually
audited by an independent certified public accountant in accordance
with generally accepted auditing standards. A copy of the audit must be
included with the application. The audit must verify that the
federation is honoring designations made to each member organization.
The audit requirement is waived for newly created federations operating
for less than a year.
(3) That it does not employ in its CFC operations the services of
private consultants, consulting firms, advertising agencies or similar
business organizations to perform its policy-making or decision-making
functions in the CFC. It may, however, contract with entities or
individuals such as banks, accountants, lawyers, and other vendors of
goods and/or services to assist in accomplishing its administrative
tasks.
(f) The Director will notify a federation if it is determined that
the federation does not meet the eligibility requirements of this
section. A federation may appeal an adverse eligibility decision in
accordance with Sec. 950.205.
(g) The Director may waive any eligibility criteria for federation
status if it is determined that such a waiver will be in the best
interest of the CFC.
(h) Two organizations--American Red Cross and United Service
Organization--are exempt from the 15-member requirement of
Sec. 950.301(c).
Sec. 950.302 Responsibilities of national federations.
(a) National federations must ensure that only those member
organizations that comply with all eligibility requirements included in
these regulations are certified for participation in the CFC.
(b) The Director may elect to review, accept or reject the
certifications of the eligibility of the members of the national
federations. If the Director requests information supporting a
certification of national eligibility, that information shall be
furnished promptly. Failure to furnish such information within 10
business days of the receipt of the request constitutes grounds for the
denial of national eligibility of that member.
(c) The Director may elect to decertify for up to one campaign year
a federation which makes a false certification, subject to the
requirement that any federation that the Director proposes to decertify
shall be offered the opportunity to have a hearing on the record on the
proposed decertification, followed by a written decision stating the
grounds for the decertification. False certifications are presumed to
be deliberate. This presumption may be overcome by evidence presented
at the hearing.
(d) The failure of a national federation to respond in a timely
fashion to a request by the Director for required information or
cooperation in an investigation or a settlement of disbursements may be
grounds for decertification, provided that a decision to decertify is
preceded by a hearing on the record and communicated in writing.
(e) Each federation, as fiscal agent for its member organizations,
must ensure that Federal employee designations are honored in that each
member organization receives its proportionate share of receipts based
on the results of each individual campaign.
[[Page 57897]]
Sec. 950.303 Local federations eligibility.
(a) LFCC's must approve local federations that conform to the
requirements.
(b) By applying for inclusion in the CFC, federations consent to
allow the LFCC and Director complete access to it and its members' CFC
books and records and to respond to requests for information by the
LFCC and the Director.
(c) An organization may apply to the LFCC for inclusion as a local
federation if the applicant has as members of its proposed federation,
15 or more charitable organizations that meet the eligibility criteria
of Sec. 950.202, Sec. 950.203, and Sec. 950.204. The initial year an
organization applies for federation status, it must submit to the LFCC
applications of all its proposed member organizations in addition to
the federation application. Federations must re-establish eligibility
each year, however, the applications of its member organizations need
not accompany the annual federation application once an organization
has obtained federation status.
(d) After an organization has been granted federation status, it
may certify that its member organizations meet all eligibility criteria
of Secs. 950.202, 950.203, and 950.204 to be included on the Local
List. While deference should be given to federation certifications, the
LFCC, during the review process, may request independent evidence of
individual member organization's eligibility. Federation status in a
prior campaign is not a guarantee of federation status in a subsequent
campaign. Failure to meet minimum federation eligibility requirements
shall not be deemed to be a decertification subject to a hearing on the
record.
(e) An applicant for local federation status must certify and/or
demonstrate:
(1) That all member organizations seeking participation in the CFC
are qualified for inclusion on the Local List and provide a complete
list of those member organizations it certified.
(2) That its financial records, practices and procedures conform to
generally accepted accounting principles and is annually audited by an
independent certified public accountant in accordance with generally
accepted auditing standards. A copy of the annual audit must be
included with the application. The audit must verify that the
federation is honoring designations made to each member organization.
The audit requirement is waived for newly created federations operating
for less than a year.
(3) That is does not employ, in its CFC operations, the services of
private consultants, consulting firms, advertising agencies or similar
business organizations to perform the policy-making or decision-making
functions in the CFC. It may, however, contract with entities or
individuals such as banks, accountants, lawyers, and other vendors of
goods and/or services to assist in accomplishing its administrative
tasks.
(f) The LFCC will notify a federation if it is determined that the
federation does not meet the eligibility requirements of this section.
A federation may appeal an adverse eligibility decision in accordance
with Sec. 950.205.
(g) The Director may waive any eligibility criteria for federation
status if it is determined that such a waiver will be in the best
interest of the CFC.
Sec. 950.304 Responsibilities of local federations.
(a) Local federations must ensure that only those member
organizations that comply with all eligibility requirements included in
these regulations are certified for participation in the CFC.
(b) If the LFCC requests information supporting a certification of
local eligibility, that information shall be furnished promptly.
Failure to furnish such information within 10 business days of the
receipt of the request constitutes grounds for the denial of local
eligibility.
(c) The Director, upon recommendation by the LFCC, may elect to
decertify a federation which makes a false certification for up to one
campaign year, subject to the requirement that any federation that the
Director proposes to decertify shall be offered the opportunity to have
a hearing on the record on the proposed decertification, followed by a
written decision stating the grounds for the decertification. False
certifications are presumed to be deliberate. The presumption may be
overcome by evidence presented at the hearing.
(d) The failure of a local federation to respond in a timely
fashion to a request by the Director or the LFCC for required
information or cooperation in an investigation may be grounds for
decertification, provided that a decision to decertify is preceded by a
hearing on the record and communicated in writing.
(e) Each federation, as fiscal agent for its member organizations,
must ensure that Federal employee designations are honored in that each
member organization receives its proportionate share of receipts based
on the results of each individual campaign.
Subpart D--Campaign Materials
Sec. 950.401 Campaign and publicity materials.
(a) The specific campaign and publicity materials, such as the
official brochure, will be developed locally, except as specified in
these regulations. All materials must be reviewed by the LFCC for
compliance with these regulations and will be printed and supplied by
the PCFO. All publicity materials must have the approval of the LFCC
before being used. Federations must notify the PCFO in writing of their
desire to participate in the development of campaign and publicity
materials. The PCFO must respond in a timely manner to a federation's
request to participate in the development of campaign and publicity
materials. Federations must also respond in a timely fashion in the
development of campaign and publicity materials.
(b) During the CFC solicitation period, participating CFC
organizations may distribute bona fide educational materials describing
its services or programs. The organization must be granted permission
by the Federal agency installation head, or designee to distribute the
material. CFC Coordinators, Keyworkers or members of the LFCC, are not
authorized to grant permission for the distribution of such materials.
If one organization is granted permission to distribute educational
materials, then the Federal agency installation head must allow any
other requesting CFC organization to distribute educational materials.
(c) Organizations and federations are encouraged to publicize their
activities outside Federal facilities and to broadcast messages aimed
at Federal employees in an attempt to solicit their contributions
through the media and other outlets.
(d) Agency Heads are further authorized to permit the distribution
by organizations of promotional pamphlets to Federal personnel in
public areas of Federal workplaces in connection with the CFC, provided
that the manner of distribution accords equal treatment to all
charitable organizations furnishing such pamphlet for local use, and
further provided that no such distribution shall utilize Federal
personnel on official duty or interfere with Federal government
activities. LFCC members and other campaign personnel are to be
particularly aware of the prohibition of assisting any charitable
organization or federated group in distributing any type of literature,
especially during the campaign period. Nothing in this section shall be
construed to require an LFCC to distribute or arrange for the
[[Page 57898]]
distribution of any material other than the Campaign brochure and the
pledge card.
(e) The Campaign brochure and pledge card is the official CFC
information package and shall be made available to all potential
contributors. All CFC brochures must inform employees of their right to
make a choice to contribute or not to contribute; to designate or not
to designate; and to give a confidential gift in a sealed envelope.
(f) Campaign materials must constitute a simple and attractive
package that has fundraising appeal and essential working information.
The package should focus on the CFC without undue use of charitable
organization symbols and logos or other distractions that compete for
the donor's attention. Extraneous instructions concerning the routing
of forms, tallying of contributor's receipt, and similar reports, which
are primarily for keyworkers must be avoided.
(g) The following applies specifically to the campaign brochure:
(1) OPM will include in the annual distribution of the National
List explicit instructions for the printing of the brochure and
language to be printed verbatim in the introductory pages. The general
information provided will include:
(i) a description of the CFC arrangement and explanation of the
payroll deduction privilege.
(ii) a statement that the donor may only designate charitable
organizations or federations that are listed in the brochure and that
write-ins are prohibited.
(iii) instructions as to how an employee may obtain more specific
information about the programs and the finances of the organizations
participating in the campaign.
(iv) a description of employees' rights to pursue complaints of
undue pressure or coercion in Federal fundraising activities.
(2) Following the introductory pages, the organization list will
consist of three parts--the national, the international, and the local.
The order of these three parts will be annually rotated in accordance
with OPM instructions. In 1996 the Local part will be first followed by
the National and finally the International. The national and
international lists will consist of faithful reproductions of the lists
of national and international organizations, including federations,
provided by OPM. The third part, the local list, is determined by the
LFCC. The order of listing of the federated and unaffiliated
organizations within the three separate parts will be determined by
random drawing. The order of organizations within each federation will
be determined by the federation. The order within the national and
local unaffiliated groups will be alphabetical. Absent specific
instructions from OPM to the contrary, each participating organization
and federated group listing must include a description, not to exceed
25 words, of their services and programs, plus a telephone number for
the Federal donor to request further information about the group's
services, benefits, and administrative expenses. Each listing will
include a statement of the percentage of the organization's total
receipts and revenues that are used for administration and fundraising.
Neither the percentage of administrative and fundraising expenses, nor
the telephone number count toward the 25-word statement.
(3) Each national federation and charitable organization will be
assigned a code number by OPM. Local federations and local charitable
organizations will be assigned code numbers by the LFCC. At the
beginning of each federated group's listing will be the federation's
name, code number, 25-word statement, percentage of administrative and
fundraising expenses, and telephone number. The sections of the
brochure where the unaffiliated agencies are listed will begin with the
titles National Unaffiliated Organizations, International Unaffiliated
Organizations and Local Unaffiliated Organizations respectively.
(h) Omission of an eligible charitable organization from the
brochure may require that all brochures be reprinted and redistributed.
Such omissions must be reported to OPM immediately upon discovery. The
Director or LFCC may direct that the cost of such reprinting and
redistribution be borne by the PCFO or charged to CFC administrative
expenses.
(i) Dual listing. Listing of a national organization, as well as
its local affiliate organization, is permitted. However, a national
organization may waive its listing in the national section of the
brochure in favor of its eligible local affiliate. The local affiliate
must include in its application the written waiver from its national
organization.
(j) Multiple listing. Each national or local organization must
individually meet all of the eligibility criteria and submit
independent documentation as required in Sec. 950.202, Sec. 950.203 or
Sec. 950.204. Once an organization is deemed eligible, it is entitled
to only one listing in the CFC brochure, regardless of the number of
federations to which that organization belongs.
(k) The LFCC may omit the 25-word program description from the CFC
brochure if, in the immediately preceding campaign year, contributions
received in the local CFC totalled less than $100,000.
Sec. 950.402 Pledge card.
(a) The Director will make available each campaign year at least
one model pledge card which shall be reproduced at the local level.
(b) Campaigns may incorporate additional giving levels to the
Director's authorized pledge card. Campaigns may also include their
award recognition program. No further modifications to the pledge card
are permitted unless approved in advance by the Director.
(c) An employee may not make a designation to an organization not
listed in the brochure. In addition, an employee may not make a CFC
contribution to an organization listed in the brochure of a campaign
covering a geographic location different from the campaign where the
employee works. Designations made to organizations not listed in the
brochure are not invalid, but will be treated as undesignated funds and
distributed accordingly.
(d) In the event the PCFO receives a pledge card that has
designations that add up to less than the total amount pledged, the
PCFO must honor the total amount pledged and treat the excess amount as
undesignated funds. In the event that a PCFO receives a pledge card
that has a total amount pledged that is less than the sum of the
individual designations, the PCFO must honor the designations by
assigning a proportionate share of the total gift to each organization
designated. For example, if an employee indicates a total gift of $100
in the upper portion of the pledge card, but designates $25 each to
five organizations in the lower part of the pledge card, the PCFO must
adjust each organization's designation to $20.
Sec. 950.403 Penalties.
A PCFO's failure to comply with these regulations may result in
either disqualification from future service as PCFO, disqualification
as a participating federation, or both penalties. These penalties may
only be imposed after a hearing on the record and communication of the
Director's decision in writing.
Subpart E--Undesignated Funds
Sec. 950.501 Applicability.
(a) All undesignated funds shall be distributed to all of the
organizations in the CFC brochure in the same proportion that they
received designations in the campaign.
[[Page 57899]]
(b) The distribution of undesignated funds described in
Sec. 950.502 applies to all domestic area campaigns. It does not apply
to the DOD Overseas Campaign.
(c) The Director may alter the distribution of undesignated funds
as local campaign circumstances may require or to enforce the
distribution method described herein.
Subpart F--Miscellaneous Provisions
Sec. 950.601 Release of contributor names.
(a) The pledge card, designed pursuant to Sec. 950.402, must allow
an employee to indicate if the employee does not wish his or her name
and home address forwarded to the charitable organization or
organizations designated. A PCFO's failure to honor an employee's wish
may result in the decertification of the PCFO.
(b) The pledge card will direct an employee to provide his or her
complete home address on the pledge card should he or she wish his or
her name and home address released to organizations receiving their
donations.
(c) It is the responsibility of the PCFO to forward the names and
addresses of employees who have indicated that they wish their names be
forwarded, to the recipient organization directly, if the organization
is unaffiliated, and to the organization's federation if the
organization is a member of a federation. The PCFO may not make any
other use of these employees' names and addresses.
(d) Organizations must cooperate fully with OPM investigations into
the care and appropriate use of these lists. Should an organization
ignore or fail to respond to OPM's requests for cooperation or hamper
an investigation, the Director may propose that the organization be
suspended or expelled from the CFC. The Director will consider any
response in issuing a decision.
Sec. 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 6-week campaign period if approved by the appropriate agency head
or government official, consistent with agency ethics regulations.
(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.
Sec. 950.603 Sanctions.
(a) Sanctions not specifically provided for elsewhere in these
regulations, may be imposed on an organization, federation or PCFO for
violating any provisions, other applicable provisions of law, or any
directive or instruction from the Director. The Director will determine
the appropriate sanction, up to and including permanent expulsion from
the CFC. In determining the appropriate sanction, the Director will
consider all elements such as previous violations, harm to Federal
employee confidence in the CFC, and any other relevant factors. The
Director shall provide written notification to the organization,
federation or PCFO regarding the alleged violation and the intent to
impose a sanction. Prior to implementation of sanctions under this
section, the organization, federation or PCFO shall be provided an
opportunity to address in writing why the sanction should not be
imposed. This submission must be received within 10 calendar days from
the date of receipt of the Director's notification letter.
(b) At the Director's discretion, PCFO's and Federations may be
directed to suspend distribution of current and future CFC donations
from Federal employees to recipient organizations. Federations and
PCFO's shall immediately place suspended contributions in an interest
bearing account until directed to do otherwise.
Sec. 950.604 Records retention.
Federations, PCFO's and other participants in the CFC shall retain
documents pertinent to the campaign for at least three campaign years.
Documents requested by OPM must be made available within 10 business
days of the request.
Subpart G--DoD Overseas Campaign
Sec. 950.701 DoD overseas campaign.
(a) A Combined Federal Campaign is authorized for all Department of
Defense (DoD) activities in the overseas areas during a 6-week period
in the fall. Organizations that may participate in the Overseas
Campaign will consist of organizations determined nationally eligible
by OPM.
(b) The DoD must select an organization or combination of
organizations to serve as PCFO as it deems in the best interests of the
overseas campaign.
(c) Federal civilian agencies with overseas personnel may elect to
have these employees participate in the DoD campaign or in the National
Capital Area campaign.
(d) The overseas campaign brochure shall not include the All
International Organizations Designation Option-IIII.
(e) Family support and youth activities established in overseas
locations may be supported from CFC funds.
(f) Undesignated funds contributed in the Overseas Campaign equal
to up to 6 percent of the gross campaign contributions will be
allocated to the Overseas family support and youth activities. No other
funds may be used for this purpose. If the undesignated funds exceed 6
percent of the gross campaign contributions, this excess shall be
distributed to all other organizations in the same proportions as
designations.
(g) Overseas family support and youth activities shall not be
charged any share of campaign costs. All other organizations
participating in the Overseas Area CFC will be charged for campaign
costs in the same proportion that they received gross campaign
receipts, net of that amount of receipts set aside for family support
and youth activities.
(h) The overseas campaign brochure must explain the allocation
policy utilized by each of the military services to allocate funds
received from the Overseas campaign to their overseas family support
and youth activities.
Subpart H--CFC Timetable
Sec. 950.801 Campaign schedule.
(a) The Combined Federal Campaign will be conducted according to
the following timetable.
(1) During one 30-calendar day period between January and March, as
determined by the Director, OPM will accept applications from
organizations seeking to be listed on the national list.
(2) Within 35 calendar days of the closing of the receipt of
applications, the Director will issue notices to each national
applicant organization of the results of the Director's review.
(3) Local Federal Coordinating Committees must select a PCFO no
later than March 15.
(4) The Director will issue a national eligibility list to all
local campaigns by June 30.
(5) Local Federal Coordinating Committees must accept applications
[[Page 57900]]
from organizations seeking local eligibility for 30 calendar days as
determined by the LFCC, and must issue notice of its eligibility
decisions within 15 business days of the closing date for receipt of
applications.
(b) The Director will annually issue a timetable for accepting and
processing national applications.
Subpart I--Payroll Withholding
Sec. 950.901 Payroll allotment.
The policies and procedures in this section are authorized for
payroll withholding operations in accordance with the Office of
Personnel Management Pay Administration regulations in part 550 of this
Title.
(a) Applicability. Voluntary payroll allotments will be authorized
by all Federal departments and agencies for payment of charitable
contributions to local CFC organizations.
(b) Allotters. The allotment privilege will be made available to
Federal personnel as follows:
(1) Employees whose net pay regularly is sufficient to cover the
allotment are eligible. An employee serving under an appointment
limited to 1 year or less may make an allotment to a CFC when an
appropriate official of the employing Federal agency determines that
the employee will continue employment for a period to justify an
allotment. This includes military reservists, National Guard, and other
part-time and intermittent employees who are regularly employed.
(2) Members of the Uniformed Services are eligible, excluding those
on only short-term assignment (less than 3 months).
(c) Authorization. Allotments will be totally voluntary and will be
based upon contributor's individual authorization.
(1) The CFC Pledge Card, in conformance with Sec. 950.402, is the
only form for authorization of the CFC payroll allotment and may be
printed or purchased from a central source by each PCFO. The pledge
cards and official brochure will be distributed to employees when
charitable contributions are solicited.
(2) The original copy of each pledge card (payroll allotment
authorization) should be transmitted to the contributor's servicing
payroll office as promptly as possible, preferably by December 15.
However, if pledge cards are received after that date they should be
accepted and processed by the payroll office.
(d) Duration. Authorization of allotments will be in the form of a
term allotment. Term authorizations will be in effect for 1 full year--
26, 24, or 12 pay periods depending on the allotter's pay schedule--
starting with the first pay period beginning in January and ending with
the last pay period that begins in December. Three months of employment
is considered the minimum amount of time that is reasonable for
establishing an allotment.
(e) Amount. Allotters will make a single allotment that is
apportioned into equal amounts for deductions each pay period during
the year.
(1) The minimum amount of the allotment will be determined by the
LFCC but will not be less than $1 per payday, with no restriction on
the size of the increment above that minimum.
(2) No change of amount will be authorized for term allotments.
(3) No deduction will be made for any period in which the
allotter's net pay, after all legal and previously authorized
deductions, is insufficient to cover the CFC allotment. No adjustment
will be made in subsequent periods to make up for missed deductions.
(f) Remittance. One check will be sent by the payroll office each
pay period, in the gross amount of deductions on the basis of current
authorizations, to the Central Receipt and Accounting Point (CRP) at
each local CFC location for which the payroll office has received
allotment authorizations. The Director will provide a list of the
authorized CRP's to Federal payroll offices.
(1) The check will be accompanied by a statement identifying the
agency, the dates of the pay period, and the total number of employee
deductions.
(2) There will be no listing of allotters included or of allotter
discontinuances.
(g) Discontinuance. Term allotments will be discontinued
automatically on expiration of the 1 year withholding period, or on the
death, retirement, or separation of the allotter from the Federal
service, whichever is earlier.
(1) An allotter may revoke a term authorization at any time by
requesting it in writing from the payroll office. Discontinuance will
be effective the first pay period beginning after receipt of the
written revocation in the payroll office.
(2) A discontinued allotment will not be reinstated.
(h) Transfer. When an allotter moves to another organizational unit
served by a different payroll office in the same CFC location, whether
in the same office or a different Department or agency, his or her
allotment authorization should be transferred to the new payroll
office.
(i) Accounting. Federal payroll offices will oversee the
establishment of individual allotment accounts, the deductions each pay
period, and the reconciliation of employee accounts in accordance with
agency and General Accounting Office requirements. The payroll office
will accept responsibility for the accuracy of remittances, as
supported by current allotment authorizations, and internal accounting
and auditing requirements.
(1) The PCFO shall notify the federated groups, national agencies,
and local agencies as soon as practicable after the completion of the
campaign, but in no case later than February 15, of the amounts, if
any, designated to them and their member agencies and of the amounts of
the undesignated funds, if any, allocated to them.
(2) The PCFO is responsible for the accuracy of disbursements it
transmits to recipients. It shall transmit at least monthly for
campaigns of $500,000 or more or quarterly if less than that amount,
minus only the approved proportionate share for administrative cost
reimbursement and the PCFO fee set forth in Sec. 950.106(d). It shall
remit the contributions to each organization or to the federated group,
if any, of which the organization is a member. For campaigns with gross
receipts in excess of $500,000, the PCFO will distribute all CFC
receipts beginning April 1, and monthly thereafter. For campaigns with
gross receipts of $500,000 or less, the PCFO will distribute all CFC
receipts beginning June 1, and quarterly thereafter. At the close of
each disbursement period, the PCFO's CFC account shall have a balance
of zero.
(3) The PCFO may make one-time disbursements to organizations
receiving minimal donations from Federal employees. The LFCC must
determine and authorize the amount of these one-time disbursements. The
PCFO may deduct the proportionate amount of each organization's share
of the campaign's administrative costs and the average of the previous
3 years pledge loss from the one-time disbursement. This is the only
approved application of adjusting for pledge loss.
(4) Federated and national charitable organizations, or their
designated agents, will accept responsibility for:
(i) The accuracy of distribution amount the charitable
organizations of remittances from the PCFO; and
(ii) Arrangements for an independent audit conducted by a certified
public accountant agreed upon by the participating charitable
organizations.
[FR Doc. 95-28715 Filed 11-22-95; 8:45 am]
BILLING CODE 6325-01-M
