[Federal Register Volume 71, Number 223 (Monday, November 20, 2006)]
[Rules and Regulations]
[Pages 67276-67290]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19628]
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Part III
Office of Personnel Management
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5 CFR Part 950
Solicitation of Federal Civilian and Uniformed Service Personnel for
Contributions to Private Voluntary Organizations--Eligibility and
Public Accountability Standards; Final Rule
Federal Register / Vol. 71, No. 223 / Monday, November 20, 2006 /
Rules and Regulations
[[Page 67276]]
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OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 950
RIN 3206-AL05
Solicitation of Federal Civilian and Uniformed Service Personnel
for Contributions to Private Voluntary Organizations--Eligibility and
Public Accountability Standards
AGENCY: Office of Personnel Management.
ACTION: Final rule.
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SUMMARY: The Office of Personnel Management (OPM) is issuing final
regulations concerning the Combined Federal Campaign (CFC). These final
regulations are being issued as part of OPM's effort to modernize the
CFC and to realize administrative efficiencies. They were designed to
address the current and future environment of the CFC where the
electronic transmission of information will be more routine. As such,
these regulations update the criteria for CFC eligibility, streamline
the charity application process, ease the administrative burden on the
local campaigns, promote the use of electronic technology in the
administration of the CFC, and expand opportunities during disasters
and emergencies for Federal donors to contribute to all charities
participating in the CFC regardless of location.
FOR FURTHER INFORMATION CONTACT: Mark W. Lambert by telephone at (202)
606-2564; by FAX at (202) 606-5056; or by e-mail at cfc@opm.gov.
DATES: These regulations are effective November 20, 2006.
SUPPLEMENTARY INFORMATION: Pursuant to 5 U.S.C. 553(d)(3), the Director
of the Office of Personnel Management finds good cause to waive the 30
day effective date for these regulations. Many national/international
organizations including federations, federation members, and
independent organizations, are beginning to prepare for filling out
their 2007 CFC applications for submission to OPM in January 2007. If
those organizations begin that process under the current regulations,
then are required to revise those applications pursuant to these
revised regulations, resources may be needlessly expended, there will
be confusion in revising applications, and some applicants who would be
eligible under the revised regulations might not apply under the
current regulations. Finally, there will be confusion and resource
implications for OPM to begin the review process when applications may
need to be withdrawn or revised if the regulations were not to become
effective until mid December or later.
OPM is issuing final regulations concerning eligibility provisions
and administrative requirements governing the participation of
organizations and the administration of the CFC. These final
regulations present a balanced approach to the current and anticipated
future needs of the CFC and continue the tradition of accountability in
the CFC by providing Federal donors with assurances that CFC
participating charities provide real services and are fiscally
accountable. OPM encourages stakeholders and non-profit sector
institutions with an oversight mission to collaborate to ensure that
all charities are fully accountable to the public they serve. OPM will
continue to emphasize the importance of providing complete, accurate,
and timely financial reports to donors, regulators and the public, and
will support donors by providing them with information to evaluate the
charities of their choice.
On June 29, 2006 (71 FR 37003), OPM issued comprehensive proposed
regulations to revise the procedures governing the solicitation of
Federal civilian and uniformed services personnel at the workplace for
contributions to private non-profit organizations. That workplace
solicitation is known as the CFC, administered by OPM under the
authority of Executive Order 12353 (March 23, 1982) as amended by
Executive Order 12404 (February 10, 1983). The proposed regulations
were issued to reduce the burden on applicant charitable organizations
seeking to qualify for the CFC, simplify the administrative process of
determining whether charitable organizations are eligible to
participate in the CFC, and facilitate modernization of the CFC. The
proposed regulations are available at http://a257.g.akamaitech.net/7/
257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-5795.pdf.
In this final rule, OPM addresses the comments received on the
proposed rules set forth at 5 CFR part 950. The 45 day public comment
period ended August 14, 2006. A total of 415 comments were received
from participating CFC organizations, Principal Combined Fund
Organizations, members of Local Federal Coordinating Committees,
individuals and a Federal government agency.
Eligibility Provisions and Public Accountability Standards
Under the existing CFC regulations, there were 16 core eligibility
and public accountability standards and 3 core administrative
requirements that a charitable organization was required to satisfy in
order to participate in the CFC. These appeared in the form of
certifications in the annual CFC application. Many of the standards
required specific documentation, such as audited financial statements
and an annual report to demonstrate compliance. OPM had proposed
removing eight of these standards, including the requirement that
participating organizations' administrative and fundraising expenses
not exceed 25 percent of its total revenue. OPM had proposed modifying
some of the remaining standards to eliminate documented proof of
compliance. The standards of eligibility and accountability being
adopted by OPM in this Final Rule are summarized as follows:
1. Section 950.202(a)--National List Eligibility Requirements--
Certify that the applicant organization 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. The proposed
regulation set forth that a detailed schedule would be required as part
of the application that described activities in each state or foreign
country in each year. In addition, OPM clarified the types of
information that it would consider acceptable to determine that real
services are provided or to accurately determine the individuals or
entities who benefit from the services. In addition, OPM proposed
adding a statement to clarify that de minimis services, benefits,
assistance, or other program activities in any state or foreign country
would not be accepted as a basis for eligibility. One organization and
one individual commented with a concern that OPM's attempt to clarify
the eligibility requirements would still result in limited additional
guidance for charities, federations, and OPM personnel. Both comments
recommended that OPM amend the regulations to adopt an extensive list
of factors against which OPM could evaluate whether an organization has
made a clear showing of actual services, benefits, assistance or
activities provided in each state or foreign country and also suggested
criteria that OPM should adopt to define what constitutes substantial
services. OPM
[[Page 67277]]
carefully considered these comments but is not accepting these
recommendations and the Final Rule will adopt the proposed regulation.
OPM believes that the most appropriate vehicle for any additional
guidance in this area is through use of the existing CFC administrative
memoranda process and through additional instructions in how to
complete the annual CFC application.
2. Section 950.202(b)--National List Eligibility Requirements--
Certify that the applicant organization 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(c)(2) and
that the organization is classified as a public charity under 26 U.S.C.
509(a). OPM proposed this revision to clarify that applicant
organizations must be public charities, not private foundations, or
exclusively government units or instrumentalities thereof. There were
no comments on this proposal and OPM is adopting this change as
proposed.
3. Section 950.203(a)(1)--Public Accountability Standards--Certify
that the applicant organization is a human health and welfare
organization providing services, benefits, or assistance to, or
conducting activities affecting, human health and welfare. No changes
were proposed to this standard and it remains the same as the existing
regulation.
4. Section 950.203(a)(2)--Public Accountability Standards--Certify
that the applicant organization 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. Under the proposed rule, applicants would
no longer have been required to actually submit a copy of a recent
audit with the application. OPM also proposed to require a
certification that the organization had an audit only if it sought CFC
participation on the national/international or international parts of
the charity list and if it reported $250,000 or more in revenue on its
IRS Form 990. OPM proposed to exempt from the audit requirement
applicant organizations seeking to participate in the CFC at the local
level that reported revenue of less than $250,000. Numerous comments
were received both in support of and against this proposal. Those
opposed argued that reducing the number of CFC charities that are
independently audited would increase the risk of fiscal mismanagement
on the part of such charities and could increase the number of
applications for inclusion in the CFC. Those in favor noted that the
cost of an audit imposes a disproportionate burden on smaller, local
charitable organizations.
OPM has considered these various concerns. OPM agrees that by
requiring charities with revenues over $250,000 seeking to participate
in a local campaign to submit audited financial statements with the
application Federal donors will have additional assurances that such
organization is fiscally accountable. OPM is also retaining the
existing regulatory requirement that organizations seeking to
participate on the national/international and international parts of
the charity list, regardless of their revenues, certify that they
account for funds in accordance with generally accepted accounting
principles, have an audit of their financial statements conducted by an
independent certified public accountant in accordance with generally
accepted auditing standards, and submit a copy of their audited
financial statements. In a departure from the existing regulation,
organizations seeking local participation will be required to make
those same certifications and submit a copy of their audited financial
statements only if their revenues are over $250,000. Organizations with
revenues between $100,000 and $250,000 seeking local participation will
be required to certify that they account for funds in accordance with
generally accepted accounting principles and have an audit of their
financial statements conducted by an independent certified public
accountant in accordance with generally accepted auditing standards,
but will not be required to submit the audited financial statements
with their application. Charities with revenues less than $100,000
seeking local participation will be required to certify that they have
adequate financial controls in place, in form or substance as specified
by OPM, but will not be required to submit these with their
application.
5. Section 950.203(a)(3)--Public Accountability Standards--Certify
that it prepares and submits to the IRS a complete copy of the
organization's IRS Form 990 or that it is not required to submit an IRS
Form 990, and provide a completed copy of the organization's IRS Form
990, including signature, with the CFC application regardless of
whether or not the IRS requires the organization to file this form. OPM
proposed to revise this standard to require a certification in addition
to having the applicant submit a copy of the completed IRS Form 990
together with supplemental statements and Schedule A with the
application. OPM also proposed to no longer routinely check to
determine whether the IRS Form 990 revenues and expenses reported
reconcile with the audited financial statements since this
reconciliation is required to be performed by the organization on the
IRS Form 990 in Parts IV-A and IV-B. Comments opposing the proposed
rule noted that the level of CFC accountability would be lowered if the
previously required reconciliation between the IRS Form 990 and the
audited financials were removed. Comments in favor of the proposed
change suggested that the current reconciliation statement that
organizations are required to provide on the IRS Form 990 should be
sufficient to qualify for participation in the CFC. One organization
pointed out that efforts by leading nonprofit infrastructure
organizations to achieve greater consistency in financial reporting
standards for the charitable sector are the most appropriate vehicle to
promote improved reporting to the IRS and should not be used as a means
to exclude charities from the CFC. OPM agrees with the comments in
favor and will adopt the proposed regulation in the final rule.
6. Section 950.203(a)(4)--Public Accountability Standards--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
existing regulations at section 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). No
substantive changes were proposed to this standard. The references to
specific lines of the IRS Form 990 were removed, in anticipation of
future changes to the Form by the IRS and the proposed regulation will
be adopted in the final rule.
7. Section 950.203(a)(5)--Public Accountability Standards--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. No changes were
proposed to this standard. One commenter suggested that CFC charities
be required to provide the names and terms of their governing board and
dates of prior year board meetings. OPM notes that under the current
CFC regulations, the Director currently has the discretion
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to request this information as deemed necessary.
8. Section 950.203(a)(6)--Public Accountability Standards--Certify
that the organization's fundraising practices prohibit the sale or
lease of its CFC contributor lists. OPM proposed removing this
standard. Due to the number of public comments that claimed this could
undermine donor confidence in the CFC, OPM is withdrawing this proposed
regulation and will retain the existing regulation.
9. Section 950.203(a)(7)--Public Accountability Standards--Certify
that the applicant organization's publicity and promotional activities
are based upon its actual program and operations, are truthful and non-
deceptive, and make no exaggerated or misleading claims. OPM had
proposed to remove this standard. A majority of comments favored
retention of this certification as a precaution against abuse by
applicant organizations and as a possible enforcement tool in cases of
use of deceptive methods to mislead donors. OPM is withdrawing the
proposed regulation and will retain its existing regulation.
10. Section 950.203(a)(8)--Public Accountability Standards--Certify
that contributions are effectively used for the announced purposes of
the charitable organization. No changes were proposed to this standard.
11. Section 950.203(a)(12)--Public Accountability Standards--
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. No changes were proposed to this
standard.
12. Section 950.203(a)(13)--Public Accountability Standards--
Provide a statement in 25 words or less describing the program
activities of the charitable organization. As proposed, this provision
is being removed as an eligibility standard, but is retained as an
administrative requirement in section 950.401(g)(2) and will be
required from each charitable organization completing the CFC
application. One commenter proposed that OPM specify that the 25-word
statement is not permitted to be misleading. OPM points out that
section 950.203(a)(7) of the existing CFC regulation, which will be
retained in the Final Rule, requires that organizations certify that
their publicity and promotional activities are truthful and non-
deceptive. OPM believes that section 950.203(a)(13) is more appropriate
as an administrative requirement. The proposed change is therefore
adopted in the final rule.
13. Section 950.605--Sanctions Compliance Certification--Each
federation, federation member and unaffiliated organization applying
for participation in the CFC must, as a condition of participation,
complete a certification that it is in compliance with all statutes,
Executive orders, and regulations restricting or prohibiting U.S.
persons from engaging in transactions and dealings with countries,
entities or individuals subject to economic sanctions administered by
the U.S. Department of the Treasury's Office of Foreign Assets Control
(OFAC). No changes were proposed to this certification.
Current Eligibility and Public Accountability Standards Removed in the
Final Rule
1. Section 950.202(c)--National List Eligibility Requirements--
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). The
majority of comments broadly supported OPM's proposed removal of this
standard because the existing regulatory requirement has been
misconstrued by some as prohibiting permissible advocacy by charities
participating in the CFC.
Given the interrelatedness of items 2 and 3, and the comments
received, the analysis follows after item 3--Section 950.203(a)(4)(ii).
2. Section 950.203(a)(4)(i)--Public Accountability Standards--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 CFC application and also include a formal plan to reduce these
expenses below 25 percent.
3. Section 950.203(a)(4)(ii)--Public Accountability Standards--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.
A significant majority of comments on these requirements opposed
OPM's proposal to remove the 25 percent administrative and fundraising
rates (AFR) threshold and the explanation and reduction plan
requirements as a condition of participation in the CFC. The commenters
argued that allowing a charity, regardless of its AFR ratio, to
participate in the CFC would result in an expansive increase in the
number of applicant organizations applying to the CFC. Commenters noted
that such increase could significantly raise the costs to manage the
application process and increase local campaign expenses to produce
larger brochures. Many comments suggested that OPM should instead
increase the acceptable AFR threshold to 35 percent, consistent with
the standards commonly used by stakeholders in the charitable
community. Other comments stated that the existing regulation should be
retained and that OPM should not expect that donors would have the
capability or resources to conduct their own research regarding an
organization's AFR. One national organization commenter supported the
elimination of the AFR standard as long as information about these
expenses is readily made available to donors. That same organization
suggested that OPM require applicant organizations with AFRs that
exceed 35 percent to also include an explanation or rationale for the
higher expenditures.
While OPM carefully considered this matter, OPM is adopting its
proposed regulation in the final rule and is removing the 25 percent
AFR ceiling as an eligibility standard. The issue of obtaining a
specific AFR in order to participate, the subjective nature of OPM's
determination regarding an acceptable explanation of a high AFR, and
the determination of the merits of the proposed reduction plan have
caused an administrative burden on OPM staff. Much of the litigation
affecting the CFC in the past several years have centered on this
issue, resulting in a substantial resource drain on OPM staff,
including the Office of CFC Operations. OPM believes that Federal
donors are capable of determining what their acceptable AFR levels
should be for charities they consider supporting. In the interest of
ensuring that potential Federal donors are informed of participating
organizations' AFR, OPM will continue to calculate and publish the AFR
of participating charities by listing the AFR in CFC information
including the charity lists that are distributed to the donor. OPM will
add a statement to all CFC Brochures that will note that OPM, as well
as the philanthropic community at large, remains concerned about
excessive AFR levels. The Brochure will inform the CFC donor that the
philanthropic community generally considers an AFR in excess of 35% to
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be problematic and that potential CFC donors should carefully review
the circumstances applicable to the potential charities of their choice
to be certain they fully understand and accept the AFR situations for
such charities before donating to them.
OPM believes that Federal donors should have an opportunity to
donate to a wide range of charitable organizations and should not be
limited in their choices to those charities with AFRs of a specific
rate, so long as the AFR information is available to them to make an
informed decision. OPM encourages Federal donors to be knowledgeable
about those charities to which they choose to donate. OPM already
requires organizations to provide their World Wide Web address, if
available, where donors can research the organization. Many local
campaigns also provide donors with electronic access to information
from and about participating organizations. As the CFC continues to
modernize and more donors have more information available through the
internet, donors can have unlimited references on most organizations.
OPM is retaining the rule as it was proposed.
4. Section 950.203(a)(9)--Public Accountability Standards--Certify
under which governmental entity the charitable organization is
chartered, incorporated or organized (Congressionally chartered or the
state in which it is registered). OPM proposed to remove this standard.
There were five comments which opposed the proposed removal of this
standard. The comments noted that this information was not a burden to
collect and could be used to obtain additional information on the
organization. OPM believes that any such additional information can be
obtained from the application itself or from contacting the
organization directly. OPM will adopt the proposed regulation in the
final rule and will remove this eligibility standard.
5. Section 950.203(a)(10)--Public Accountability Standards--Certify
that the organization has received no more than 80 percent of its total
support and revenues from government sources as computed by dividing
line 1c by line 12 from the IRS Form 990 submitted pursuant to section
950.203(a)(3). Many comments agreed with OPM's proposed removal of this
standard. Two organizations favored retaining this certification based
on the rationale that the spirit of the CFC is to make the charitable
donations of Federal employees available to qualified charities, while
keeping out of the CFC those organizations which already have stable
funding and are, in essence, providing government supported services.
Two other organizations agreed with removing the standard, but
requested that any such organizations be denoted with an asterisk in
the CFC donor brochure to alert donors that they received more than 80
percent of their funding from government sources. OPM believes that the
existing requirement has served to exclude legitimate organizations
interested in diversifying their sources of support from participation
in the CFC. OPM will remove this standard in the final rule as
proposed.
6. Section 950.203(a)(11)--Public Accountability Standards--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. OPM proposed to remove
this standard because a significant portion of the information sought
in the annual report is already the subject of a certification or
obtained as a result of other eligibility requirements and public
accountability standards contained in sections 950.202(a) and
950.203(a)(3). A number of comments were received both supporting and
opposing the proposed rule change. One comment in favor argued that
with an increasing number of organizations using expanded online
resources to present information, the proposed rule change would
encourage more organizations to present their information on-line.
Comments against OPM's proposed regulation claimed that requiring an
applicant to provide a copy of its annual report enhances
accountability and transparency. OPM believes that the annual report is
not an essential component of the application, particularly since the
application requires a detailed description of services, benefits or
activities which are carefully reviewed to determine eligibility. OPM
agrees that donors should be encouraged to access this information
online whenever possible or otherwise obtain an annual report directly
from the charity. OPM adopts the proposed regulation in its final rule.
Changes corresponding to these changes in eligibility and public
accountability requirements also are being made to the eligibility
requirements for the local part of the charity list contained in
section 950.204, and national and local federation standards set forth
at sections 950.301, and 950.303. As proposed, national, international
and local federations are required to submit documents to demonstrate
compliance with the audit, financial, governance and annual report
requirements. These requirements are clarified in sections
950.301(e)(2) and 950.303(e)(2). Federations provide services to 15 or
more member organizations. Services include the receipt and
distribution of funds through the CFC. Because federations handle
approximately 80 percent of all funds distributed through the CFC, the
documented evidence of compliance for federations will continue to be
required.
7. Section 950.204(b)(1)(ii)--OPM has decided not to proceed with
the proposed change that would require statewide services to be
provided over a 3 year period, and has withdrawn that change from the
final rule.
Miscellaneous Administrative Changes
In addition to changes and modifications to the eligibility
standards described above, OPM proposed other CFC administrative
changes to clarify CFC procedures, address areas of concern noted over
the years by OPM and stakeholders, and to better recognize the use of
electronic technology in the administration of the CFC. Except where
noted, comments received on the following proposed regulatory changes
supported such changes. Given the substantive concerns regarding two of
the proposed administrative changes, involving solicitation of
contractor personnel on Federal premises and the relationships between
national organizations and their bona fide local affiliates, OPM is
withdrawing the proposed regulation and retaining the regulations as
they previously existed with minor clarifying changes. These issues are
described in greater detail in the next section.
Proposed changes being adopted in the final regulations:
1. Various changes modifying references associated with the use of
paper-based information and processes such that these new terms apply
within an electronic CFC environment.
2. Section 950.101 includes a revised definition of ``Charity
List'' to be consistent with section 950.401(g)(2). Throughout the CFC
regulations, OPM has revised the terms ``National and International
Lists'' to use the terms ``National/International'' and
``International'' to be consistent with the definition of ``Charity
List'' in section 950.101 and the provisions of section 950.401(g)(2).
3. Current section 950.102(a) limits the annual solicitation of
donors to a six week period between September 1 and December 15. One
commenter stated that the six week period should be retained. OPM
believes that eliminating
[[Page 67280]]
the requirement of a specific six week period is in the best interests
of the campaign and will allow local campaign leadership to determine
the appropriate length of the solicitation that must still occur
between September 1 and December 15.
4. Current section Sec. 950.102(c) states that the Director
exercises general supervision over all operations of the CFC, and takes
all necessary steps to ensure the achievement of campaign objectives.
OPM will adopt as the final rule the proposed rule that clarifies and
specifically articulates the Director's authority to perform audits and
investigations of all CFC activities, and resolve any identified issues
resulting from such audits and investigations.
5. Current section 950.103(f) describes a six week period for
soliciting donors similar to that described in item (2) above.
Corresponding proposed changes are adopted in the final rule.
6. Current section 950.103(h) states that a Federal employee may
participate in a local CFC campaign only if that employee's official
duty station is located within the geographic boundaries of that
campaign. OPM proposed a modification to allow for contributions to
organizations outside of an employee's official duty station in the
cases of emergencies and disasters as defined in section 950.102(a),
upon approval by the Director. OPM further proposed to give the
Director authority to remove all geographic restrictions under any
circumstances at some future date upon the implementation of
appropriate technology. Because OPM anticipates such elimination of
these geographic restrictions on giving at some point in the future,
local eligibility based on adjacency and statewide presence will no
longer be necessary and will be eliminated upon implementation of
appropriate electronic technology to be announced by the Director at
some future date, without the need for a new proposed regulatory
proposal. Also see related changes proposed to section 950.204(b)(1).
OPM retains these provisions in the proposed rule.
A number of comments expressed concern over OPM's plans to manage
the flow of contributions during large scale emergencies or disasters
and one organization suggested that OPM should study the impact of this
provision on the structure and costs of the campaign. A disaster relief
organization recommended that in the event of a major disaster, a
separate campaign for disaster relief should be conducted concurrently
with the regular CFC in order to distinguish better the contributions
designated for disaster relief activities. OPM will consider this
suggestion but does not believe that adoption of the proposed
regulation would preclude the implementation of such a separate
disaster campaign since the Director currently exercises general
supervision over all operations of the CFC and has the authority to
take all necessary steps to ensure the achievement of campaign
objectives. Therefore, there is no need to specify the handling of the
campaign during times of emergency or disaster beyond the authority
already available, and OPM is adopting the rule as proposed.
7. Current section 950.104(b)(6) encourages local Federal agencies
to appoint loaned executives to assist in the campaign and grant
administrative leave to all loaned executives appointed. OPM is
adopting the proposed rule that will clarify that Federal agencies
should not place loaned executives on administrative leave since the
CFC activities are considered part of the official duties of the
Federal employee loaned to assist in the CFC.
8. Current section 950.104(c) states that the LFCC must annually
solicit applications for the PCFO via public notice. OPM proposed to
remove the requirement for an annual application and allow LFCCs to
enter into multi-year agreements, at their discretion. OPM also
proposed the removal of the requirement to solicit the PCFO
applications via a public notice and to provide the LFCC discretion as
to how to announce the solicitation as long as it reaches the audience
of prospective applicants. OPM will adopt these provisions in the final
rule.
9. Current section 950.106(a) states the amount a PCFO may recover
for campaign expenses shall not exceed 10 percent of the estimated
budget. OPM adopts the proposed regulation, correcting an error in this
section which would state that the recovery amount should not exceed
110 percent of the estimated budget.
10. Current section 950.109 describes certain conflicts of interest
for Federal employees who serve as an LFCC member or fundraising
coordinator. OPM proposed to add clarifying language regarding LFCC
members not being able to serve in their official capacity on the board
of directors of the non-profit organization that administers the CFC in
its local area. This situation was addressed in administrative guidance
at CFC Memorandum 2002-15. OPM is adopting this proposed revision in
the final rule.
11. Current sections 950.201(a)(1) and (2) discuss eligibility for
national organizations to be included on the national list. OPM
proposed adding references for international organizations, which must
also meet these criteria, and clarifying the Director's ability to
consider corrective action regarding any prior violation of regulation
or directive, sanction, or penalty, as appropriate, prior to
determining eligibility. OPM is adopting these proposed revisions in
the final rule.
12. Consistent with changes set forth above in paragraph 6, above,
current section 950.204(b)(1) is modified to allow for the Director to
provide for elimination of adjacency and statewide presence eligibility
requirements commencing with the implementation of appropriate
electronic technology. See related changes adopted in section
950.103(h). In addition, OPM clarifies this section to define more
clearly an adjacent local campaign. A number of comments were received
opposing this proposed change, noting a concern that statewide
charities and adjacent charities will lose contributions if they are
not included in the charity list, and donors will be affected if they
lose the opportunity to contribute to charities of their choice. OPM
notes that the current adjacency and statewide eligibility criteria
will remain in place until appropriate technology exists to permit
donors to make contributions without geographic restriction. OPM does
not intend that there would be any gap period during which a potential
donor would be deprived of an opportunity to donate to an eligible
charity during the transition from the current rule to the elimination
of geographic boundaries. OPM believes that the cost efficiencies
inherent in the use of appropriate technology will only be realized by
strongly encouraging the use of online electronic listings. OPM also
acknowledges that some form of paper charity list may be needed to
reach certain donors that may not have access to computers. In these
circumstances, OPM will issue appropriate guidance to facilitate a full
listing of all eligible charities within the geographic area. OPM is
adopting this provision in the final rule.
13. Current section 950.204(b)(2)(iii) is being amended to add
Guam, the Commonwealth of Northern Mariana Islands, and American Samoa
to the list of U.S. territories whose charities may be exempt from the
requirements of Sec. 950.202(b). A number of comments pointed out that
local organizations based in these territories do not generally
participate in the CFC because they are not granted this exception. OPM
determined that local non-profit organizations based in U.S.
territories
[[Page 67281]]
are entitled to similar privileges as those in Puerto Rico and the
Virgin Islands, provided they meet all other required eligibility
requirements.
14. Current section 950.204(e) is being revised to remove the 15
day period for LFCCs to make eligibility decisions and providing
instead that the decisions must be made as of a date determined by OPM
and published in the annual CFC calendar.
15. OPM proposed adding a new subsection to section 950.204(g) that
clarifies the LFCC's ability to consider corrective action regarding
any prior violation of regulation or directive, applying an appropriate
sanction or penalty, as appropriate, prior to determining eligibility
of local organizations. OPM is as adopting the proposal in the final
rule.
16. Current section 950.301(a) states that the Director may
recognize national and international federations that conform to
eligibility and accountability standards. OPM proposed clarifying the
Director's ability to consider corrective action regarding any prior
violation of regulation or directive applying an appropriate sanction
or penalty, as appropriate, prior to determining eligibility of
national and international federations. OPM is as adopting the proposal
in the final rule.
17. Current section 950.301(c) states that an organization may
apply for inclusion as a national CFC federation if the applicant
federation has 15 or more member organizations each of which meet the
eligibility criteria of sections 950.202 and 950.203. A national
federation must provide copies of applications for all of its members
in the initial year that it applies to participate in the CFC as a
federation, but needs to submit copies of applications after the
initial year only at OPM's request. OPM proposed to add clarifying
language that the federation itself does not count among the 15 or more
members organizations required to receive federation status. Four
comments stated that the federation itself should count as one of the
15 members. OPM believes that the federation itself should not be
included as one of those 15 member organizations, and is adopting the
proposed clarification in the final rule.
18. Current section 950.301(d) discusses the role of national and
international federations. OPM proposed a terminology change from
``decertification'' to ``withdrawal of federation status'' to conform
to a terminology change proposed in section 950.603(a). Numerous
commenters indicated that they opposed this change as well as the
changes regarding sanctions and penalties in section 950.603(a). The
commenters did not believe the proposed change provided an adequate
appeal process. OPM notes that it did not change the sanctions and
penalty requirements in the proposed rule. The proposed changes simply
clarified and consolidated the many sections that dealt with penalties
and sanctions into a single section at section 950.603(a). The
requirements are those required by Federal law and OPM is adopting the
proposed changes in the final rule.
19. Current section 950.301(e)(2) requires national and
international federations to certify that their financial activities
conform to generally accepted accounting principles (GAAP) and that
they are annually audited by an independent certified public accountant
in accordance with generally accepted auditing standards (GAAS). That
section further requires a copy of the audited financial statements and
that the audit must verify that the federation is honoring designations
made to each member organization. Finally, the current regulation
waives the audit requirement for newly created federations operating
for less than a year. OPM proposed to clarify and simplify the
regulatory language to apply to all eligibility requirements and public
accountability standards, contained in sections 950.202 and 950.203 and
required of independent organizations and federation members, to the
national and international federations. OPM does not view this as a
substantive change and is adopting the proposal in the final rule.
20. Current section 950.301(e)(2)(iii) requires national and
international federations to disclose important administrative expense
information to the CFC and donors in its annual report. One
organization suggested that OPM should consider the differences in
accounting systems used by federations and establish a standard
reporting system. OPM agrees that this could be of potential value and
will consider this as an area for future administrative review. OPM is
retaining the provision as proposed.
21. Current section 950.303(a) states that the LFCC must approve
local federations that conform to eligibility and public accountability
standards. OPM proposed to clarify the LFCC's ability to consider
corrective action regarding any prior violation of regulation or
directive, sanction, or penalty, as appropriate, prior to determining
eligibility of local federations. OPM adopts this proposal in the final
rule.
22. Current section 950.303(c) is the same requirement for local
federations as that described for section 950.301(c) regarding national
federations. OPM is adopting in the final rule the clarification that
the local federation itself does not count among the 15 or more members
required to receive federation status.
23. Current section 950.303(d) sets forth the role of local
federations. OPM will adopt in the final rule a terminology change from
``decertification'' to ``withdrawal of federation status'' to conform
to a terminology change in section 950.603(a).
24. Section 950.303(e)(2) sets forth the same requirement for local
federations as that is described above applicable to section
950.301(e)(2). The changes adopted for national and international
federations also are adopted for local federations in the final rule.
25. Section 950.303(e)(2)(iii) sets forth the same requirement for
local federations as that described above in section 950.301(e)(2)(iii)
for national and international federations. OPM will adopt this
requirement in the final rule.
26. Current section 950.401(g)(3) states that each national and
international federation and charitable organization will be assigned a
code number by OPM and each local federation and local charitable
organization will be assigned code numbers by the LFCC. OPM is
modifying this regulation to facilitate alternative mechanisms by which
OPM may assign charity codes. A number of comments expressed concerns
over the manner in which OPM is planning to implement a re-coding of
the charities, as part of the development of a centralized national CFC
list. One comment indicated that OPM has already begun the
implementation of such re-coding process by officially announcing that
OPM will be assigning both national and local code numbers and
requiring that LFCCs notify charities accordingly. OPM notes that while
the planning for the assignment of new codes for all CFC charities has
begun, the official assignment of codes will not occur before these
final regulations are implemented. OPM further notes that it has had
extensive consultation with stakeholders on the need for a new coding
structure and the limitations that the existing regulation imposes on
the structure of the campaign. OPM is adopting the proposed
modification in the final rule.
27. Current sections 950.401(i) and (j) are being amended to
provide that local affiliates of a national organization, not
separately incorporated, still can be determined locally eligible using
the national organization's IRS tax-exempt
[[Page 67282]]
determination letter and audited financial statements accompanied with
a certification that the local affiliate operates as a bona-fide
chapter or affiliate in good standing of the national organization and
that the affiliate is covered by the national organization's 501(c)(3)
tax exemption, IRS Form 990 and audited financial statements. The
affiliate must provide a pro forma IRS Form 990, page 1 and Part V
only, for CFC purposes in addition to the other documents required
under section 950.204.
28. Current section 950.601 governs the release of donor names and
addresses and the transmittal of this information to designated
charities. OPM proposed changing the terms ``names and address'' to
``information,'' to allow other donor information to be released, such
as contribution amount and home email address. Numerous comments
supported this change but suggested that clear ``opt-in, opt-out''
choices be given to donors. A number of comments opposed this change in
light of the proposed change to remove the prohibition against sale or
lease of contributor lists in section 950.203(a)(6). However, since OPM
is retaining the current regulatory prohibition against sale or lease
of contributor lists in section 950.203(a)(6), and will not adopt the
proposed change, OPM does not believe there is substantial disagreement
with this proposed change in section 950.601 and will adopt that change
in the final rule.
29. Current section 950.604 specifies that federations, PCFOs and
other participants shall retain documents pertinent to the campaign for
three campaign years. OPM proposed to clarify that three campaign years
is actually three completed campaign periods and is not based on
calendar years. OPM is adopting this clarification in the final rule.
30. Current section 950.801(a)(1) specifies the period during which
OPM will accept applications from organizations seeking to be listed on
the national and international parts of the charity list. OPM proposed
to modify this section to replace it with a period to be determined by
the Director. OPM will create, maintain, and issue a CFC calendar of
events each year to define the applicable time periods. Initially, OPM
will provide for a specific 60-calendar day period between December and
February as the period during which OPM will accept applications. OPM
adopts this modification in the final rule.
31. Current section 950.801(a)(2) states that within 35 calendar
days of the closing date for the receipt of annual applications, the
Director will notify each national and international applicant of the
results of the application review. OPM proposed to remove the defined
35 day requirement and annually publish an anticipated date for
notification on the calendar of events that OPM will maintain. OPM is
adopting this provision in the final rule.
32. Current section 950.801(a)(3) states that the LFCC must select
the PCFO no later than March 15 each year. OPM proposed to remove the
reference to March 15 and state that the LFCC must select the PCFO no
later than a date to be determined annually by OPM. OPM will provide
the date in its annual CFC calendar of events and initially set the
date as February 15 to allow campaigns to begin early planning for the
campaign beginning after the effective date of these regulations. OPM
is adopting this provision in the final rule.
33. Current section 950.801(a)(4) requires the Director to issue a
national and international list of eligible organizations by June 30.
OPM proposed to remove the specific date and state the requirement by a
date annually determined by the Director. Several comments indicated
that given the impact on all campaigns of the timely release by OPM of
the national and international parts of the charity list, that a
regulatory adjusted deadline would be preferred. One comment
recommended that OPM change the date for issuance from June 30 to July
30 to be consistent with current actual practice. OPM believes that
future release of the national and international parts of the charity
list and the screening of charities will be expedited by improved
technology and administrative improvements in these regulations and the
use of a specific deadline in regulation will impose an unnecessary
constraint. OPM is adopting the proposed change in the final rule.
34. Current section 950.801(b) requires the Director to annually
issue a timetable for accepting and processing national and
international applications. OPM proposed to modify this section to
specify that the Director will create, maintain and issue annually a
CFC calendar of events with specific dates that include the accepting
and processing of national and international applications as well as
other significant CFC dates. A majority of comments expressed concern
that without regulatory deadlines, local campaigns could not plan
adequately or hold OPM accountable for the release of the national and
international parts of the charity list. The proposed CFC calendar will
be official CFC guidance and OPM believes it will be sufficient to
allow for adequate local administration of the campaigns. In addition,
OPM does not anticipate significant changes to any of the dates being
removed from the regulations and will provide the annual calendar well
in advance of the annual campaign and time for selection of the PCFO
for any campaign. Local campaigns will have adequate time to plan for
the campaign based on the issuance of the CFC calendar of dates. OPM is
adopting the provision in the final rule.
35. Current 950.901(f)(1) requires the remittance checks sent by
payroll offices to the PCFO each pay period to be accompanied by a
statement identifying the agency, the dates of the pay period and the
total number of employee deductions. OPM proposed to add the pay period
number to the information required to be on this statement. OPM is
adopting this provision in the final rule.
36. Current sections 950.901(i)(1) and (i)(2) each contain specific
dates for the PCFO to notify charitable organizations of the amount of
pledged contributions (currently no later than February 15) and to
begin its periodic distributions to charitable organizations. OPM
proposed to remove the specific dates referenced in the regulation and
provide that these actions will occur no later than a date to be
determined annually by OPM. OPM will publish the dates in its annual
CFC calendar of events. Initially, OPM plans to extend the notification
date to March 15. OPM proposed to remove the requirement for monthly
payments and allow all campaigns to make quarterly payments beginning
no later than April 1. Several comments noted that some small
organizations could be adversely affected by quarterly payments. OPM
notes that the PCFO will continue to have the option of retaining the
monthly payments and is adopting the proposed provisions in the final
rule
37. Current sections 950.105(e), 950.302(c), 950.302(d),
950.304(c), 950.304(d), 950.403, and 950.603 all provide for certain
penalties and sanctions for federations, unaffiliated organizations,
and PCFOs. OPM proposed to clarify and combine these penalties and
sanctions into one new section 950.603 and remove the other references
from the regulations. Numerous commenters indicated that they did not
agree with the changes in section 950.603(a) because they did not
provide an adequate appeal process. OPM notes that it did not change
the sanctions and penalty requirements in the proposed rule. The
proposed changes simply clarified and
[[Page 67283]]
consolidated the many sections that dealt with penalties and sanctions
into a single section 950.603(a). The requirements are those required
by Federal law and OPM will adopt these changes in the final rule.
Proposed Regulations Withdrawn in Favor of Existing Regulations
1. Current section 950.103(g) prohibits solicitation of contractor
personnel, credit union employees and other persons employed on Federal
premises, and retired Federal employees but allows these individuals an
opportunity to participate in the CFC by making single contribution.
OPM's proposal to revise this rule by eliminating restrictions against
the solicitation of the above personnel received extensive comments
from the Office of Government Ethics (OGE). In particular, the OGE
stated that the proposed rule did not specify any standards governing
the circumstances under which the solicitations may occur. OPM agrees
this is an issue that requires additional study and is not adopting the
portion of the proposed rule that would have allowed the solicitation
of non-Federal personnel. OPM will retain the existing regulation in
order to have more time to re-examine this issue, while clarifying that
donations offered by non-Federal personnel must be accepted. OPM adopts
the portion of the proposed rule that allows for other electronic means
of contributing, including credit cards, upon approval by the Director.
2. Sections 950.204(b)(2)(iii) and (b)(2)(iv) were proposed
additions to the regulations intended to recognize financial
relationships between national organizations and their bona fide local
affiliates and to remove certain requirements depending on how those
relationships were structured. OPM received numerous comments opposing
the proposed changes which pointed to the emerging trends among
national charitable organization structures to operate as single
corporations with affiliates. OPM is not adopting the proposed
regulations and will retain a slightly modified version of the existing
regulatory language as its final rule. OPM has modified section
950.401(i) to clarify that local chapters/affiliate organizations must
satisfy CFC eligibility criteria and must independently demonstrate
services and accountability through the submission of independent
documentation as required in sections 950.202, 950,203 or 950.204,
except that a chapter or affiliate that is part of a single corporation
or part of a group exemption may rely on the 26 U.S.C. 501(c)(3) tax-
exempt determination and the audited financial statements for the
national organization, but must submit page 1 and Part V of a pro forma
IRS Form 990 used to calculate the AFR.
Regulatory Flexibility Act
I certify that this regulation will not have a significant economic
impact on a substantial number of small entities. Charitable
organizations applying to the CFC have an existing, independent
obligation to comply with the eligibility and public accountability
standards contained in current CFC regulations. Streamlining these
standards will be less burdensome.
Executive Order 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with Executive Order 12866.
List of Subjects in 5 CFR Part 950
Administrative practice and procedures, Charitable contributions,
Government employees, Military personnel, Nonprofit organizations, and
Reporting and recordkeeping requirements.
Office of Personnel Management.
Linda M. Springer,
Director
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Accordingly, OPM amends 5 CFR part 950 as follows:
PART 950--SOLICITATION OF FEDERAL CIVILIAN AND UNIFORMED SERVICE
PERSONNEL FOR CONTRIBUTIONS TO PRIVATE VOLUNTARY ORGANIZATIONS
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1. The authority citation for part 950 continues to read as follows:
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).
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2. Amend part 950 as follows:
0
a. Remove the words ``brochure'' and ``brochures'' and add in their
place ``Charity List'' and ``Charity Lists'', respectively, wherever
they appear;
0
b. Remove the words ``card'' and ``cards'' and add in their place
``form'' and ``forms'', respectively, wherever they appear; and
0
c. Remove the words ``materials'', ``pamphlet'', and ``pamphlets'' and
add in their place ``information'' wherever they appear.
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3. In Sec. 950.101:
0
a. Remove the definition of Campaign Year;
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b. Add the definitions of Campaign Period, Charity List, and
Independent Organization in alphabetical order; and
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c. In the definition of International General Designation Option remove
the word ``campaign''.
The additions read as follows:
Sec. 950.101 Definitions.
* * * * *
Campaign Period means generally a 24 month period beginning with
the selection of a Principal Combined Fund Organization (PCFO) or
renewal of the existing PCFO's agreement with a Local Federal
Coordinating Committee (LFCC) and ending with the final disbursements
to charitable organizations participating in a local campaign.
Charity List means the official list of charities approved by OPM
and the LFCC for inclusion in the CFC within a given geographic
solicitation area. The Charity List will consist of three parts: the
National/International part, the International part, and the Local
part. Organizations that provide services, benefits, assistance, or
program activities in 15 or more different states or a foreign country
can choose to be listed on either the International or National/
International part, except for members of a federation, which must be
listed with the federation. Organizations that provide services,
benefits, assistance, or program activities in 15 or more different
states but no foreign countries will be listed on the National/
International part. All qualifying local organizations within a CFC
geographic solicitation area will be listed on the Local part
associated with the campaign for that local CFC area.
* * * * *
Independent Organization means a charitable organization that is
not a member of a federation for the purposes of the Combined Federal
Campaign.
* * * * *
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4. In Sec. 950.102 amend paragraph (a) by removing the text ``6 week''
from the second sentence, and amend paragraph (c) by adding two
sentences at the end of the paragraph to read as follows:
Sec. 950.102 Scope of the Combined Federal Campaign.
* * * * *
(c) * * * OPM has the authority to audit, investigate, and report
on the administration of any campaign, the organization that
administers the campaign, and any national, international and local
federation, federation member or independent organization that
participates in the campaign for compliance with these regulations. The
Director resolves any
[[Page 67284]]
issues reported and determines sanctions or penalties, as warranted
under Sec. 950.603.
* * * * *
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5. In Sec. 950.103, revise paragraphs (f), (g) and (h) to read as
follows:
Sec. 950.103 Establishing a local campaign.
* * * * *
(f) Each year the LFCC must establish the time period during which
CFC solicitation may take place. 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, or by electronic means, including credit cards, as
approved by the Director. Contractor personnel, credit union employees
and other persons present on Federal premises, as well as retired
Federal employees, may make single contributions to the CFC through
checks, money orders, or cash, or by electronic means, including credit
cards, as approved by the Director. These non-Federal personnel may not
be solicited, but donations offered by such persons must be accepted by
the local campaigns.
(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. This restriction may be discontinued
upon implementation of appropriate electronic technology that allows
removal of the need for geographic restrictions on giving as determined
by the Director. Upon a showing of extraordinary circumstances, as
determined in the sole discretion of the Director, Federal employees
may contribute in support of victims in cases of emergencies and
disasters defined in Sec. 950.102(a) outside the geographic boundaries
of their participating CFC. Such contributions can be check, money
order, or cash or by electronic means, including credit cards, as
approved by the Director, but shall not be made through payroll
deduction.
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6. Amend Sec. 950.104 as follows:
0
a. In paragraphs (b)(4) and (b)(5), remove the word ``local''; and
0
b. Revise paragraphs (b)(6) and (c) to read as follows:
The revisions read as follows:
Sec. 950.104 Local Federal Coordinating Committee responsibilities.
* * * * *
(b) * * *
(6) Encouraging local Federal agencies to appoint loaned executives
to assist in the campaign. CFC loaned executives' time should be
charged to regular working hours. It is not appropriate to place a CFC
loaned executive on administrative leave, leave without pay, or annual
leave. Federal loaned executives are prohibited from working on non-CFC
fundraising activities during duty hours.
* * * * *
(c) The LFCC must select a PCFO to act as its fiscal agent and
campaign coordinator on the basis of presentations made to the LFCC as
described in Sec. 950.105(c). The LFCC may, in its discretion, select
a PCFO to serve in that role for up to three campaign periods, subject
to renewal each year following a review of performance as defined in
Sec. 950.105. The LFCC must consider the capacity of the organization
to manage an efficient and effective campaign, its history of public
accountability, use of funds, truthfulness and accuracy in
solicitations, and sound governance and fiscal management practices as
the primary factors in selecting a PCFO. The LFCC must solicit
applications on a competitive basis for the PCFO no later than a date
to be determined by OPM and, if the LFCC exercises discretion to enter
into a multi-year arrangement, upon completion of the multi-year term.
The LFCC shall solicit applications via outreach activities including:
Public notice in newspapers, postings on Web sites, advertising in
trade journals, dissemination among participating CFC organizations and
federations, and/or outreach through local or state nonprofit
associations and training centers, among others. The PCFO application
period must be open a minimum of 21 calendar days. Costs incurred for
soliciting applications must be added to the PCFO budget as an
administrative cost.
Sec. 950.105 [Amended]
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7. Amend Sec. 950.105 as follows:
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a. In paragraph (b), remove the word ``printed'' in the second sentence
and add in its place the word ``developed'';
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b. In paragraph (d)(3), remove the word ``address'' and add in its
place ``contact information'';
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c. In paragraph (d)(6), add the text ``, contact information and
contribution amounts'' after the word ``names'';
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d. In paragraph (d)(10), remove the word ``reprinting'' and add in its
place ``reproduction and/or reissuing'' and remove the number ``10''
and add in its place ``110''; and
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e. Remove paragraph (e).
Sec. 950.106 [Amended]
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8. In Sec. 950.106, amend paragraph (a) by removing the number ``10''
and adding in its place ``110.''
Sec. 950.109 [Amended]
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9. In Sec. 950.109, amend the first sentence by adding the words
``serve in any official capacity in any organization that serves as the
PCFO of the local CFC, or'' before the word ``participate''.
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10. Amend Sec. 950.201 as follows:
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a. Revise the section heading;
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b. Revise paragraphs (a)(1) through (c)(3).
The amendments to Sec. 950.201 read as follows:
Sec. 950.201 National/international eligibility.
(a) * * *
(1) Determine the timetable and other procedures regarding
application for inclusion in the National/International and
International parts of the Charity List.
(2) Determine which organizations among those that apply qualify to
be included in the National/International and International parts of
the Charity List and then provide these parts of the Charity List of
qualified organizations to all local campaigns. In order to determine
whether an organization may participate in the campaign, the Director
may request evidence of corrective action regarding any prior violation
of regulation or directive, sanction, or penalty, as appropriate. The
Director retains the ultimate authority to decide whether the
organization has demonstrated, to the Director's satisfaction, that the
organization has taken appropriate corrective action. Failure to
demonstrate satisfactory corrective action or to respond to the
Director's request for information within 10 business days of the date
of the request may result in a determination that the organization will
not be included in the Charity List.
(b) The National/International and International parts of the
Charity List shall be included in the Charity List in accordance with
these regulations. The Charity List will include each organization's
CFC code and other information as determined by OPM. These CFC codes
must be verbatim reproduced in the Charity List.
(c) An organization on the National/International or International
parts of the Charity List may elect to be removed from the applicable
part of the Charity List and have its local affiliate or subunit listed
on the Local part of the Charity List of organizations in its stead.
For the local affiliate or subunit to be
[[Page 67285]]
listed in lieu of the organization on the National/International or
International parts, the following procedures must be followed:
(1) The organization must send a letter to the local affiliate or
subunit in that particular geographic CFC, waiving its listing on the
National/International or International part of the Charity List so
that its eligible local affiliate or subunit listed in the Local part
of the Charity List in that geographic CFC will appear as that
organization's sole listing in the Charity List.
(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/International or International part of
the Charity List, as well as all the required materials for completing
a local organization application.
(3) Upon finding the local organization eligible, the waiver letter
from the organization on the National/International or International
part authorizes the LFCC to delete that organization from the National/
International or International part of the Charity List.
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11. Revise Sec. 950.202 to read as follows:
Sec. 950.202 National/international eligibility requirements.
(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
disseminating information and publications via the U.S. Postal Service,
the internet, or a combination thereof. A schedule listing a detailed
description of the services in each state (minimum 15) or foreign
countries (minimum 1), including the year of service, must be included
with the CFC application. The schedule must make a clear showing of
national or international presence. Broad descriptions of services and
identical repetitive narratives will not be accepted in the sole
discretion of OPM if they do not allow OPM to adequately determine that
real services were provided or to accurately determine the individuals
or entities who benefited. Providing listings of affiliated groups does
not sufficiently demonstrate provision of real services by the
applicant. Location of residence of organization members or location of
residence of visitors to a facility does not substantiate provision of
services. Organizations that issue student scholarships or fellowships
must indicate the state in which the recipient resides, not the state
of the school or place of fellowship. Mere dissemination of information
does not demonstrate acceptable provision of real services. 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. De minimis services, benefits, assistance, or other program
activities in any state or foreign country will not be accepted as a
basis for qualification as a national or international organization.
(b) Certify that it is an organization recognized by the Internal
Revenue Service as tax exempt under 26 U.S.C. 501(c)(3) to which
contributions are deductible under 26 U.S.C. Sec. 170(c)(2) and that
the organization is further classified as a public charity under 26
U.S.C. Sec. 509(a). A copy of the letter(s) from the Internal Revenue
Service granting tax exempt and public charity status must be included
in the organization's application.
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12. Amend Sec. 950.203 as follows:
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a. Remove paragraphs (a)(9) through (a)(11), and (a)(13) and
redesignate paragraph (a)(12) as (a)(9);
0
b. In paragraph (a) introductory text, remove the words ``national
list'' in the first sentence;
0
c. In paragraph (a)(1), remove the second sentence;
0
d. Revise paragraphs (a)(2) through (a)(4); and
0
e. In the newly redesignated paragraph (a)(9), remove the phrase
``national list'' and add the phrase ``Charity List'' in its place.
The revisions read as follows:
Sec. 950.203 Public accountability standards.
(a) * * *
(2) Certify that it accounts for its funds on an accrual basis
(cash, modified cash, modified accrual and any other methods of
accounting are not acceptable) in accordance with generally accepted
accounting principles and that an audit of its fiscal operations is
completed annually by an independent certified public accountant in
accordance with generally accepted auditing standards. A copy of the
organization's most recent annual audited financial statements must be
included with the application. The audited financial statements must
cover the fiscal period ending not more than 18 months prior to the
January of the year of the campaign for which the organization is
applying. For example, the audited financial statements included in the
2007 application must cover the fiscal period ending on or after June
30, 2005.
(3) Certify that it prepares and submits to the IRS a complete copy
of the organization's IRS Form 990 or that it is not required to
prepare and submit an IRS Form 990 to the IRS. Provide a completed copy
of the organization's IRS Form 990 submitted to the IRS covering a
fiscal period ending not more than 18 months prior to the January of
the year of the campaign for which the organization is applying,
including signature, supplemental statements and Schedule A, with the
application, or if not required to file an IRS Form 990, provide a pro
forma IRS Form 990 page 1 and Part V only. IRS Forms 990EZ, 990PF, and
comparable forms are not acceptable substitutes. The IRS Form 990 and
audited financial statements must cover the same fiscal period.
(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).
* * * * *
0
13. Amend Sec. 950.204 as follows:
0
a. Revise the section heading;
0
b. In paragraphs (a) and (b) introductory text, remove the word
``local'';
0
c. Revise paragraph (b)(1);
0
d. Revise paragraph (b)(2)(ii) and (b)(2)(iii);
0
e. Revise paragraph (e);
0
f. In paragraph (f), remove the word ``print'' from the first sentence
and add in its place ``produce'' and remove the word ``campaign'' from
the first sentence the first time it appears; and
0
g. Add new paragraph (g).
The revisions and addition read as follows:
Sec. 950.204 Local eligibility.
* * * * *
(b) * * *
(1) An organization must demonstrate to the satisfaction of the
LFCC of the appropriate local campaign, 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. Eligibility
to participate in an adjoining campaign on the basis of adjacency or
statewide presence may be discontinued upon implementation of
appropriate electronic technology that allows removal of the need for
geographic
[[Page 67286]]
restrictions on giving as determined by the Director.
(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, the internet, the U.S. Postal Service or a combination thereof.
(ii) An adjacent local campaign is defined as a local campaign
whose geographic border touches the geographic border of another local
campaign. Participation in a local campaign via an adjacency
determination does not grant the organization a substantial local
presence in the adjacent local campaign and participating via adjacency
cannot be used to establish adjacency to local campaigns bordering the
adjacent campaign area.
(iii) 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, the internet, the U.S. Postal Service or a
combination thereof.
(2) * * *
(ii) A local charitable organization with annual revenue of less
than $100,000 reported on its IRS Form 990 or pro form IRS Form 990
submitted to the CFC is not required to undergo an audit or to submit
audited financial statements. Rather, the organization must certify
that it has controls in place to ensure that funds are properly
accounted for and that it can provide accurate and timely financial
information to interested parties. A local organization with annual
revenue of at least $100,000 but less than $250,000 must certify that
it accounts for its funds on an accrual basis in accordance with
generally accepted accounting principles and that an audit of its
fiscal operations is completed annually as described in section
950.203(a)(2), but such organization does not have to submit a copy of
its audited financial statements with its CFC application, unless
requested to do so by the LFCC or Director.
(iii) An organization seeking local eligibility in Puerto Rico, the
U.S. Virgin Islands, the Commonwealth of Northern Mariana Islands,
American Samoa, or Guam is exempt from the requirements of Sec.
950.202(b), but the organization must include with its CFC application
the appropriate documentation from its governing authority
demonstrating its status as a charitable organization.
* * * * *
(e) Local eligibility determinations. The LFCC shall communicate
its eligibility decisions by a date to be determined by OPM as part of
the annual timetable issued by the Director under Sec. 950.801(b).
Denial of the application by the LFCC must be sent via U.S. Postal
Service certified or registered mail with a return receipt requested.
Approvals may be sent via U.S. Postal Service regular first class mail.
Applicants denied eligibility may appeal in accordance with Sec.
950.205.
* * * * *
(g) In order to determine whether an organization may participate
in the campaign, the LFCC may request evidence of corrective action
regarding any prior violation of regulation or directive, sanction, or
penalty, as appropriate. The LFCC will decide whether the organization
has demonstrated, to the LFCC's satisfaction, that the organization has
taken appropriate corrective action. Failure to demonstrate
satisfactory corrective action or to respond to the LFCC's request for
information within 10 business days of the date of the request may
result in a determination that the organization will not be included in
the local part of the Charity List.
Sec. 950.205 [Amended]
0
14. In Sec. 950.205, amend paragraph (c)(4) by removing the word
``and'' and adding to the end of the sentence the text ``and supporting
information to justify the reversal of the original decision''.
0
15. Amend Sec. 950.301 as follows:
0
a. Revise the section heading and paragraph (a);
0
b. Revise paragraph (c);
0
c. In paragraph (d), remove the word ``decertification'' in the last
sentence and add in its place the words ``withdrawal of federation
status'';
0
d. In paragraph (e) introductory text, add the words ``or
international'' after the word ``national'';
0
e. In paragraph (e)(1), remove the word ``national list'' and add the
words ``National or International part of the Charity List'' in its
place; and
0
f. Revise paragraph (e)(2).
The revisions read as follows:
Sec. 950.301 National and international federations eligibility.
(a) The Director may recognize national and international
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 and international
federations. In order to determine whether the Director will recognize
a national or international federation, the Director may request
evidence of corrective action regarding any prior violation of
regulation or directive, sanction, or penalty, as appropriate. The
Director retains the ultimate authority to decide whether the
federation has demonstrated, to the Director's satisfaction, that the
federation has taken appropriate corrective action. Failure to
demonstrate satisfactory corrective action or to respond to the
Director's request for information within 10 business days of the date
of the request may result in a determination that the federation will
not be included in the Charity List.
* * * * *
(c) An organization may apply to the Director for inclusion as a
national or international federation to participate in the CFC if the
applicant has, as members of the proposed federation, 15 or more
charitable organizations, in addition to the federation itself, that
meet the eligibility criteria of Sec. Sec. 950.202 and 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. A federation must re-establish
eligibility each year, however only the applications of its new and
former members that were not within the federation, as a CFC
participant, in the previous year's campaign need accompany the annual
federation application once an organization has obtained federation
status, unless additional member applications are requested by the
Director.
* * * * *
(e) * * *
(2) That it meets the eligibility requirements and public
accountability standards contained in Sec. Sec. 950.202 and 950.203.
The federation can demonstrate that it has met the eligibility
requirement in Sec. 950.202(a) either through its own services,
benefits, assistance or program activities or through its 15 members'
activities.
[[Page 67287]]
(i) The federation must complete the certification set forth at
Sec. 950.203(a)(2) without regard to the amount of revenue reported on
its IRS Form 990 and must provide a copy of its audited financial
statements. The audited financial statements provided must verify that
the federation is honoring designations made to each member
organization by distributing a proportionate share of receipts based on
donor designations to each member. The audit requirement is waived for
newly created federations operating for less than a year as determined
from the date of its IRS tax-exemption letter to the closing date of
the CFC application period.
(ii) The federation must provide a listing of its board of
directors, beginning and ending dates of each member's current term of
office, and the board's meeting dates and locations for the year prior
to the year of the campaign for which the organization is applying.
(iii) The federation must certify that it 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. The federation must provide a copy of its most recently
completed annual report covering the fiscal period ending not more than
18 months prior to January of the campaign year to which the federation
is applying or the preceding calendar year. The annual report must also
include an accurate description of the federation's membership dues
and/or service charges received by the federation from the charitable
organizations participating as members. The information must clearly
present the amounts raised, the sources of contributions, the cost of
fundraising, and how costs are recovered from donations.
* * * * *
0
16. Amend Sec. 950.302 as follows:
0
a. Revise the section heading;
0
b. In paragraph (a), add the words ``and international'' after the word
``National'';
0
c. Revise paragraph (c); and
0
d. Remove paragraphs (d) and (e).
The revision reads as follows:
Sec. 950.302 Responsibilities of national and international
federations.
* * * * *
(c) 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. The proportionate share of
receipts is determined by donor designations to the individual member
organization as compared to total campaign designations.
0
17. Amend Sec. 950.303 as follows:
0
a. Revise paragraph (a);
0
b. Revise paragraph (c);
0
c. In paragraph (d), remove the word ``decertification'' in the last
sentence and add in its place the words ``withdrawal of federation
status''; and
0
d. Revise paragraph (e)(2).
The revisions read as follows:
Sec. 950.303 Local federations' eligibility.
(a) LFCC's must approve local federations that meet the applicable
requirements, except that in order to determine whether the LFCC must
recognize a local federation, the LFCC may request evidence of
corrective action regarding any prior violation of regulation or
directive, sanction, or penalty, as appropriate. A local federation
that has been notified that it will not be included on the Local part
of the Charity List because of failure to correct a prior violation may
appeal the LFCC's decision to the Director in accordance with Sec.
950.205(b). The Director retains the ultimate authority to decide
whether the local federation has demonstrated, to the Director's
satisfaction, that the local federation has taken appropriate
corrective action. Failure to demonstrate satisfactory corrective
action or to respond to a request by the LFCC or Director for
information within 10 business days of the date of the request may
result in a determination that the local federation will not be
included in the Local part of the Charity List.
* * * * *
(c) An organization may apply to the LFCC for inclusion as a local
federation to participate in the CFC if the applicant has as members of
the proposed federation 15 or more charitable organizations, in
addition to the federation itself, that meet the eligibility criteria
of Sec. Sec. 950.202, 950.203 and 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. A federation must re-establish eligibility
each year, however only the applications of its new and former members
that were not within the federation, as a CFC participant, in the
previous year's campaign need accompany the annual federation
application once an organization has obtained federation status, unless
additional member applications are requested by the LFCC.
* * * * *
(e) * * *
(2) That it meets the eligibility requirements contained in Sec.
950.204 (including eligibility requirements and public accountability
standards of Sec. Sec. 950.202 and 950.203 that are incorporated by
reference). The federation can demonstrate that it has met the
eligibility requirement in Sec. 950.204(b)(1) either through its own
services, benefits, assistance or program activities or through its 15
members' activities.
(i) The federation must complete the certification set forth at
Sec. 950.203(a)(2) without regard to the amount of revenue reported on
its IRS Form 990 and must provide a copy of its audited financial
statements. The audited financial statements provided must verify that
the federation is honoring designations made to each member
organization by distributing a proportionate share of receipts based on
donor designations to each member. The audit requirement is waived for
newly created federations operating for less than a year as determined
from the date of its IRS tax-exemption letter to the closing date of
the CFC application period.
(ii) The federation must provide a listing of its board of
directors, beginning and ending dates of each member's current term of
office, and the board's meeting dates and locations for the year prior
to the year of the campaign for which the organization is applying.
(iii) The federation must certify that it 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. The federation must provide a copy of its most recently
completed annual report covering the fiscal year ending not more than
18 months prior to January of the campaign year to which the federation
is applying or the preceding calendar year. The annual report must also
include an accurate description of the federation's membership dues
and/or service charges received by the federation from the charitable
organizations participating as members. The information must clearly
present the amounts raised, the sources of contributions, the cost of
fundraising, and how costs are recovered from donations.
* * * * *
[[Page 67288]]
0
18. In Sec. 950.304, revise paragraph (c) and remove paragraphs (d)
and (e) to read as follows:
Sec. 950.304 Responsibilities of local federations.
* * * * *
(c) 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. The proportionate share of
receipts is determined by donor designations to the individual member
organization as compared to total campaign designations.
0
19. Amend Sec. 950.401 as follows:
0
a. In paragraph (a), remove the word ``printed'' in the second sentence
and add in its place ``developed'';
0
b. In the first sentence of paragraph (e), add the words ``source of''
after the word ``official'', remove the word ``package'', and add the
words ``either in hard copy or electronic format'' after the word
``available'';
0
c. In paragraph (f), remove the word ``package'' in the first and
second sentences and add in its place ``design'';
0
d. Revise the introductory paragraph of (g)(1);
0
e. Revise paragraphs (g)(2) through (j); and
0
f. In paragraph (k), remove the word ``year'' and add in its place
``period'', and add to the end of the sentence the text ``or if the
LFCC can demonstrate to the satisfaction of the Director that it can
make the same information available electronically without disrupting
donor opportunities to contribute.''
The revisions read as follows:
Sec. 950.401 Campaign and publicity information.
* * * * *
(g) * * *
(1) OPM will include in the annual distribution of the National/
International and International parts of the Charity List explicit
instructions for the production of the Charity List and language to be
reproduced verbatim in the introductory section. The general
information provided will include:
* * * * *
(2) Following the introductory section, the Charity List will
consist of three parts--the National/International, the International,
and the Local. The order of these three parts will be annually rotated
in accordance with OPM instructions. The National/International and
International parts will consist of faithful reproductions of the parts
of National/International and International organizations, including
federations, provided by OPM. The third part, the Local part, is
determined by the LFCC. The order of listing of the federated and
independent 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/International, International and Local independent 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 its 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 the organization's
administration and fundraising percentage as calculated pursuant to
Sec. 950.203(a)(4). Neither the percentage of administrative and
fundraising expenses, nor the telephone number count toward the 25-word
statement.
(3) Each federation and charitable organization will be assigned a
code in a manner determined by the Director. 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 Charity List where
the independent organizations are listed will begin with the titles
National/International Independent Organizations, International
Independent Organizations and Local Independent Organizations,
respectively.
(h) Omission of an eligible charitable organization from the
Charity List may require that the Charity List be corrected and
reissued. Such an omission must be reported to OPM immediately upon
discovery. The Director or LFCC may direct that the cost of such
correction and reissue be borne by the PCFO or charged to CFC
administrative expenses.
(i) Listing of National and Local Affiliate. Listing of a national
organization, as well as its local affiliate organization, is
permitted. 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 to be
included in the Charity List, except that a local affiliate of a
national organization that is not separately incorporated, in lieu of
its own 26 U.S.C. 501(c)(3) tax exemption letter and, to the extent
required by Sec. 950.204(b)(2)(ii), audited financial statements, may
submit the national organization's 26 U.S.C. 501(c)(3) tax exemption
letter and audited financial statements, but must provide its own pro
forma IRS Form 990, page 1 and Part V only, for CFC purposes. The local
organization must submit a certification from the Chief Executive
Officer (CEO) or CEO equivalent of the national organization stating
that it operates as a bonafide chapter or affiliate in good standing of
the national organization and is covered by the national organization's
26 U.S.C. 501(c)(3) tax exemption, IRS Form 990 and audited financial
statements. A national organization may waive its listing in the
National/International or International parts of the Charity List in
favor of its local affiliate by following the procedures set forth in
Sec. 950.201(c).
(j) Multiple Listing Prohibited. Except as provided in paragraph
(i) of this section, once an organization is deemed eligible, it is
entitled to only one listing in the Charity List, regardless of the
number of federations to which that organization belongs.
* * * * *
0
20. Amend Sec. 950.402 as follows:
0
a. In paragraph (a), remove the word ``year'' and add in its place
``period'';
0
b. In paragraph (c), add to the end of the second sentence the text ``,
except in cases of emergencies or disasters as approved by the
Director'', and add a new third sentence; and
0
c. In paragraph (d), revise the last sentence.
The addition and revision read as follows:
Sec. 950.402 Pledge Form.
* * * * *
(c) * * * This restriction does not apply upon implementation of
electronic technology that removes the geographic restrictions on
giving as announced by the Director.
(d) * * * For example, if an employee indicates a total gift of
$100 on the pledge form, but designates $50 to one organization and $25
to each of three other organizations, the PCFO must adjust the pledges
proportionately by entering a pledge of $40 to the first organization
and $20 to each of the three other organizations.
Sec. 950.403 [Removed]
0
21. Remove Sec. 950.403.
0
22. Revise Sec. 950.601 to read as follows:
[[Page 67289]]
Sec. 950.601 Release of contributor information.
(a) The pledge form, designed pursuant to Sec. 950.402, must allow
a contributor to indicate if the contributor does wish his or her name,
contribution amount, and home contact information forwarded to the
charitable organization or organizations designated. A PCFO's failure
to honor a contributor's wish may result in the PCFO being sanctioned
or penalized as provided for in Sec. 950.603(a).
(b) The pledge form shall permit a contributor to specify which
information, if any, he or she wishes released to organizations
receiving his or her donations.
(c) It is the responsibility of the PCFO to forward the contributor
information for those who have indicated that they wish this
information released to the recipient organization directly, if the
organization is independent, and to the organization's federation if
the organization is a member of a federation. The PCFO may not sell or
make any other use of this information.
0
23. In Sec. 950.602, revise paragraph (b) to read as follows:
Sec. 950.602 Solicitation methods.
* * * * *
(b) Special CFC fundraising events, such as raffles, lotteries,
auctions, bake sales, carnivals, athletic events, or other activities
not specifically provided for in these regulations are permitted during
the campaign period if approved by the appropriate agency head or
government official, consistent with agency ethics regulations. CFC
special fundraising events should be undertaken in the spirit of
generating interest in the CFC and be open to all individuals without
regard to whether an individual participates in the CFC. Chances to win
must be disassociated from amount of contributions, if any. Raffle
prizes should be modest in nature and value. Examples of appropriate
raffle prizes may include opportunities for lunch with Agency
Officials, agency parking spaces for a specific time period, and gifts
of minimal financial value. Any special CFC fundraising event and prize
or gift should be approved in advance by the Agency's ethics official.
* * * * *
0
24. In Sec. 950.603, revise the section heading and paragraph (a) to
read as follows:
Sec. 950.603 Sanctions and penalties.
(a)(1) The Director may impose sanctions or penalties on a
federation, charitable organization or PCFO for violating these
regulations, other applicable provisions of law, or any directive or
instruction from the Director. The Director will determine the
appropriate sanction and/or penalty, up to and including expulsion from
the CFC. In determining the appropriate sanction and/or penalty, the
Director will consider previous violations, harm to Federal employee
confidence in the CFC, and any other relevant factors. The Director may
bar a federation or charitable organization from serving as PCFO, for a
period not to exceed one campaign period, if it is determined that that
the federation or charitable organization has violated any provisions
of these regulations. A federation, charitable organization or PCFO
will be notified in writing of the Director's intent to sanction and/or
penalize and will have 10 business days from the date of receipt of the
notice to submit a written response. The Director's final decision will
be communicated in writing to the federation, charitable organization,
or PCFO, with a copy to the appropriate LFCC.
(2) The Director may withdraw federation status with respect to a
national, international or local federation that makes a false
certification or fails to comply with any directive of the Director, or
to respond in a timely fashion to a request by the Director or LFCC for
information or cooperation, including with respect to an investigation
or in the settlement of disbursements. The LFCC may recommend the
withdrawal of federation status with respect to a local federation. As
stated in Sec. Sec. 950.301(d) and 950.303(d), failure to meet minimum
federation eligibility requirements shall not be deemed to be a
withdrawal of federation status subject to a hearing on the record.
Eligibility decisions shall follow the procedures in Sec. Sec.
950.301(f) and 950.303(f). A federation will be notified in writing of
the Director's intent to withdraw federation status for a period of up
to one campaign period and will have 10 business days from the date of
receipt of the notice to submit a written response. On receipt of the
response, or in the absence of a timely response, the Director or
representative shall set a date, time, and place for a hearing. The
federation shall be notified at least 10 business days in advance of
the hearing. A hearing shall be conducted by a hearing officer
designated by the Director unless it is waived in writing by the
federation. After the hearing is held, or after the Director's receipt
of the federation's written waiver of the hearing, the Director shall
make a final decision on the record, taking into consideration the
recommendation submitted by the hearing officer. The Director's final
decision will be communicated in writing to the federation, with a copy
to the appropriate LFCC.
(3) A federation, charitable organization or PCFO sanctioned or
penalized under any provision of these regulations must demonstrate to
the satisfaction of the Director that it has taken corrective action to
resolve the reason for sanction and/or penalty and has implemented
reasonable and appropriate controls to ensure that the situation will
not occur again prior to being allowed to participate in subsequent
CFCs and/or serving as a PCFO for a campaign.
* * * * *
0
25. Revise Sec. 950.604 to read as follows:
Sec. 950.604 Records retention.
Federations, PCFOs and other participants in the CFC shall retain
documents pertinent to the campaign for at least three completed
campaign periods. For example, documentation regarding the 2006
campaign must be retained through the completion of the 2007, 2008 and
2009 campaign periods (i.e. until early 2011). Documents requested by
OPM must be made available within 10 business days of the request.
0
26. Amend Sec. 950.801 as follows:
0
a. Revise paragraphs (a)(1) through (4); and
0
b. In paragraph (b), add the words ``and international'' in the first
sentence after the word ``national'', and add a new second sentence.
The revisions and addition read as follows:
Sec. 950.801 Campaign schedule.
(a) * * *
(1) During a period between December and January, as determined by
the Director, OPM will accept applications from organizations seeking
to be listed on the National/International and International parts of
the Charity List.
(2) The Director will determine a date after the closing of the
receipt of applications by which the Director will issue notices to
each national and international applicant organization of the results
of the Director's review. The date will be part of the annual timetable
issued by the Director under Sec. 950.801(b).
(3) Local Federal Coordinating Committees must select a PCFO no
later than a date to be determined by OPM. The date will be part of the
annual
[[Page 67290]]
timetable issued by the Director under Sec. 950.801(b).
(4) The Director will issue the National/International and
International parts of the Charity List to all local campaigns by a
date to be determined by OPM. The date will be part of the annual
timetable issued by the Director under Sec. 950.801(b).
* * * * *
(b) * * * The Director will issue the timetable for a campaign
period no later than October 31 of the year preceding the campaign
period.
0
27. Amend Sec. 950.901 as follows:
0
a. In paragraph (c)(1), remove the text ``printed or purchased from a
central source'' and add in its place ``reproduced'', and remove the
word ``distributed'' and add in its place ``made available'';
0
b. In paragraph (c)(2), add the word ``paper'' after the word ``each'',
and add the text ``or an acceptable electronic version'' after the word
``authorization'';
0
c. In paragraph (f)(1), add the text ``pay period number,'' after the
word ``period,''; and
0
d. Revise paragraphs (i)(1) and (i)(2); The revisions read as follows:
Sec. 950.901 Payroll allotment.
* * * * *
(i) * * *
(1) The PCFO shall notify the federations, national and
international organizations, and local organizations as soon as
practicable after the completion of the campaign, but in no case later
than a date to be determined by OPM, 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. The date will be part of
the annual timetable issued by the Director under Sec. 950.801(b).
(2) The PCFO is responsible for the accuracy of disbursements it
transmits to recipients. It shall transmit disbursements at least
quarterly, minus the approved proportionate share for administrative
cost reimbursement and the PCFO fee set forth in Sec. 950.106. It
shall remit the contributions to each organization or to the
federation, if any, of which the organization is a member. The PCFO
will distribute all CFC receipts beginning April 1, and quarterly
thereafter. At the close of each disbursement period, the PCFO's CFC
account shall have a balance of zero.
* * * * *
[FR Doc. E6-19628 Filed 11-17-06; 8:45 am]
BILLING CODE 6325-46-P