[Federal Register Volume 79, Number 74 (Thursday, April 17, 2014)]
[Rules and Regulations]
[Pages 21581-21595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-08574]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 79, No. 74 / Thursday, April 17, 2014 / Rules
and Regulations
[[Page 21581]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 950
RIN 3206-AM68
Solicitation of Federal Civilian and Uniformed Service Personnel
for Contributions to Private Voluntary Organizations
AGENCY: Office of Personnel Management.
ACTION: Final rule.
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SUMMARY: The Office of Personnel Management (OPM) is issuing final
regulations concerning the Combined Federal Campaign (CFC). These final
regulations are being issued in order to strengthen the integrity,
streamline the operations and increase the effectiveness of the program
to ensure its continued growth and success. They were designed in
response to the recommendations of the CFC-50 Commission in the Federal
Advisory Committee Report on the Combined Federal Campaign, issued in
July, 2012. As such, we expect these regulations will improve donor
participation, CFC infrastructure, and standards of transparency and
accountability.
DATES: Effective January 1, 2016.
FOR FURTHER INFORMATION CONTACT: Mary Capule by telephone at (202) 606-
2564; by FAX at (202) 606-5056; or by email at [email protected].
SUPPLEMENTARY INFORMATION: These regulations are effective for the 2016
campaign period. Regarding funds contributed to the CFC during the 2014
campaign year, LFCCs and PCFOs will continue to operate, disburse
funds, and submit to compliance requirements in accordance with
regulations in 5 CFR part 950 as amended at 71 FR 67284, Nov. 20, 2006.
OPM is issuing final regulations concerning the administration of the
CFC. These final regulations present a balanced approach to the current
and anticipated future needs of the CFC. They also improve upon the
tradition of accountability in the program by providing Federal donors
with assurances that the CFC maximizes efficiency and that campaign
costs are reduced; a greater portion of donors' contributions are
passed to the intended recipient charities; that contributions through
the CFC are distributed according to donors' wishes; and that CFC
participating charities 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
data to donors, regulators and the public, and will support donors by
providing them with information to evaluate the charities of their
choice. Over the first three campaign periods affected by these rules,
OPM will continue to review the impact of the rules and engage with
stakeholders to ensure that the rules are having the intended effect on
the CFC.
In 2011, the CFC celebrated its 50th anniversary. In connection
with this landmark anniversary, OPM announced the formation of the CFC-
50 Commission. The Commission, formed under the Federal Advisory
Committee Act, was asked to study ways to streamline and improve the
program; improve accountability, increase transparency and
accessibility and make it more affordable. More about the Commission
and its recommendations are available at http://www.opm.gov/combined-federal-campaign/cfc-50-commission.
The Commission delivered its report to the OPM Director on July 20,
2012. The report contained 24 recommendations for improvement in the
following areas: donor participation, CFC infrastructure, and standards
of accountability and transparency. With these recommendations, the
proposed regulations were issued to improve the CFC, based on OPM's
experience administering the program and its considered judgment, and
facilitate modernization of the CFC. The proposed regulations are
available at https://www.federalregister.gov/articles/2013/04/08/2013-08017/solicitation-of-federal-civilian-and-uniformed-service-personnel-for-contributions-to-private.
On April 8, 2013 (78 FR 20820), 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 12353 (March 23, 1982), 47 FR 12785 (Mar. 25, 1982), as
amended by Executive Order 12404 (February 10, 1983), 48 FR 6685 (Feb.
15, 1983).
In this final rule, OPM addresses the comments received on the
proposed rules set forth at 5 CFR part 950. The 60 day public comment
period ended June 7, 2013. A total of 1,382 comments were received from
participating CFC organizations, Principal Combined Fund Organizations,
members of Local Federal Coordinating Committees, individuals, and
Federal government agencies. As a result of these comments, OPM has
made a number of changes to improve these final rules.
Provisions To Improve Donor Participation, CFC Infrastructure, and
Standards of Accountability and Transparency
In the view of the CFC-50 Commission (herein ``the Commission''),
the existing CFC regulations hinder or otherwise prevent charitable
workplace giving in certain circumstances, such as among newly hired
federal employees and in times of disaster relief. Additionally, the
Commission determined that there exist in current regulations
opportunities for improvement to CFC infrastructure, such as local
governance structure, streamlining campaign administration, and
administrative cost recovery. Finally, the Commission identified areas
in current regulations where standards of accountability and
transparency could be improved, both by relieving the burdens on
charities' application requirements (such as application frequency and
audit requirements) and by improving the transparency of distribution
processes (such as by strengthening oversight of federations
[[Page 21582]]
and improving payroll deduction disbursement and reporting).
The proposed regulations include the addition of three (3)
provisions intended to improve donor participation; revision of six (6)
regulations regarding CFC infrastructure intended to improve efficiency
and reduce campaign costs; and four (4) revisions aimed at improving
standards of accountability and transparency.
The proposed regulations being adopted by OPM in this final rule
are summarized as follows:
(1) Campaign Solicitation Period. Under current regulations, the
CFC solicitation period runs from September 1 to December 15. OPM
proposed to change its regulation at Sec. 950.102(a) to shift the
campaign solicitation period by one month, so that it would begin on
October 1 and end on January 15. The proposed regulation was in line
with the Commission recommendation to ``Change the campaign
solicitation end date from December 15 to January 15.'' OPM noted that
the proposed change would allow the many employees who take leave
during the month of December to contribute through the campaign when
they return in the month of January. It would also enable employees to
consider the impact of future pay and other benefits (which often take
effect the first full pay period in January) before making donations.
OPM received 139 comments that addressed the proposed change in
solicitation period with 76 comments (54.7%) being in support. The 51
comments (36.7%) made in opposition to the proposed change raised a
number of concerns, the most numerous of which were: having charitable
contributions fall into two different tax years; having a fixed
campaign end date against the variable nature of the pay calendar; and
having to kickoff the campaign in less desirable weather. OPM carefully
considered these comments and revised its proposal to accommodate how
pay periods fall in the calendar from year to year and to allow for
easy correction in the case that the original recommendation proves
untrue and the change has little effect. This final rule stipulates
that the Director will annually set the dates for the campaign period,
but that it shall start no earlier than September 1 and end no later
than January 15.
(2) Immediate Eligibility. Under current regulations, new employees
may not begin participating in the CFC until the next scheduled
campaign solicitation period begins. OPM proposed to amend its
regulation at Sec. 950.102 to allow new employees to make CFC pledges
immediately upon entering Federal service. Under OPM's proposal, new
employees would be provided information on the CFC at orientation and
be able to make pledges within 30 days of being hired if hired outside
of the solicitation period. This will enable those employees who wish
to make an immediate contribution to do so. The proposed regulation was
in line with the Commission recommendation to ``Allow new employees to
make CFC pledges immediately upon entering Federal service rather than
waiting until the campaign.'' OPM received 142 comments regarding
immediate eligibility, of which 94 comments (66.2%) were in favor. The
remaining 48 comments were either neutral or were opposed citing
skepticism that--under the CFC's current infrastructure--immediate
eligibility could be made to work effectively. OPM, however, takes the
position cited by the Commission that ``Federal employees should be
allowed to begin their careers with charitable giving to those in
need.'' Additionally, OPM points out that added improvements in the
proposed regulations and enacted through this final rule would
facilitate a successful process of immediate eligibility.
(3) Disaster Relief Program. Under current regulations, the OPM
Director is authorized to allow special solicitations to respond to
disasters. There is no standing mechanism in place, but rather each
disaster requires a new authorization from the Director for a special
solicitation period. OPM proposed to create a permanent structure to
streamline and facilitate solicitations tied to disaster relief.
Accordingly, OPM proposed to amend its regulations at Sec. 950.102 to
provide for the creation of a Disaster Relief Program that would be
available to donors within hours after a disaster. OPM received 72
comments that addressed the creation of a disaster relief program with
51 comments (70.8%) being in support. The remaining 21 comments were
either neutral or were opposed, like with immediate eligibility, citing
skepticism that--under the CFC's current infrastructure--a disaster
relief program could be made to work effectively. Again, OPM points out
that added improvements in the proposed regulations and enacted through
this final rule would facilitate a successful disaster relief program.
(4) Local Governance Structure. Currently, the CFC is managed
locally through Local Federal Coordinating Committees (LFCC). The
number of LFCC representatives, the level of engagement, and knowledge
of CFC rules and regulations vary greatly among the 163 campaign
regions in the U.S. and overseas. In some areas, campaigns have
difficulty identifying Federal employees who can dedicate the time to
fulfill the LFCC's oversight responsibilities, including the selection
of a Principal Combined fund Organization (PCFO), review and approval
of reimbursable campaign expenses, review of local charity
applications, and oversight of the PCFO's CFC functions. OPM proposed
to modify its regulations at Sec. 950.103 to change the LFCC to a
Regional Coordinating Committee (RCC) structure. At a minimum, the RCCs
would have been comprised of representatives of Federal inter-agency
organizations, such as Federal Executive Boards, or personnel assigned
to the military installation(s) and/or Federal agency(ies) identified
as the lead agency(ies) in that region. Under the proposed change, the
responsibilities of the RCC would have been similar to those of the
LFCC with the exception of the selection and oversight of a PCFO. OPM
believed, at the time of the proposed change, that the reduction in
responsibilities, in addition to having larger campaign zones from
which to select member of the RCC, would attract more individuals to
serve in this important leadership role. The proposed change is in line
with the Commission's recommendations to ``Improve the governance of
the CFC program at the local level'' by (1) consolidating campaigns
into local areas more likely to attract federal employees capable and
willing to complete ``annual or periodic training which may require
certification (as recommended by the Commission); and (2) reducing the
workload of these personnel. The proposed change, however, appears to
have been interpreted as a deliberate attempt to regionalize the CFC
instead of merely removing ineffective campaigns and reducing the
LFCC's workload in the campaigns that remained. OPM received 643
comments regarding local governance structure, of which 615 comments
(95.7%) were opposed. The overwhelmingly prevalent reason for opposing
the change was a perceived removal of LFCCs and, in turn, the ``local
touch'' in the CFC. OPM points out that nothing in the proposed
regulation diminishes local management of the campaign or face-to-face
solicitation by federal employees. A sizable portion of the comments
received in opposition suggested that OPM continue to weed out
ineffective, non-compliant, and costly campaigns through mergers as it
has in recent
[[Page 21583]]
years. Between 2006 and 2013, the number of local campaign areas has
been reduced from 277 to 163. To this point concerns that the reduction
of local campaign areas diminishes ``local touch'', thereby resulting
in declining participation rates (as expressed in some of the public
comment) appear to be unfounded. An analysis of participation in the
merged campaigns indicates there is no correlation between
participation rate and whether a campaign has merged. On average,
between 2007 and 2012, campaigns saw a -2.1% change in participation
over their pre-merger campaign year while campaigns that did not merge
realized a -1.7% change in participation. This small difference is
understandable when one considers that ``non-surviving'' campaigns tend
to have significantly lower participation rates. For instance, in the
same years, the average participation rate for campaigns that were
merged out of existence at some point during that time period was 19.8%
compared to the national average of 24.4%. At any rate, two-year post-
merger participation rate saw a -3.1% change versus the two-year change
in the national average of -3.2%. Nonetheless, OPM considered the
comments and its own analyses and submits this final rule which merely
amends Sec. 950.103 to remove from the LFCC's responsibilities the
selection of a PCFO. The title Local Federal Coordinating Committee
(LFCC) is maintained.
(5) Electronic Donations. OPM proposed to modify Sec. 950.102 to
eliminate the use of cash, check and money order contributions.
Instead, OPM had intended to require all donations to be made by
electronic means. By moving to an exclusively electronic donation
system, OPM expected to increase the efficiency of the administration
of the CFC by eliminating burdensome paperwork, saving resources, and
removing the possibility of the mishandling of cash. The proposed
change was made in accordance with the Commission's recommendation to
``Accelerate efforts to `go green' by reducing paper processes within
the CFC as much as possible.'' Additionally, the proposed change is a
direct response to the Commission's recommendation to ``Monitor overall
campaign costs to seek continued efficiencies.'' OPM's analysis of 2012
campaign costs indicates that costs associated with ``one-time'' cash/
check gifts account for 3.1% of campaign costs while contributing 7.4%
to total contributions. Furthermore, it is estimated that half of these
contributions are received through fundraising events. Costs associated
with all paper pledge form contributions account for 9.3% of total
campaign costs, with a single paper pledge costing $3.51. By way of
comparison, electronic giving methods account for 1.3% of campaign
costs with a single electronic pledge costing less than half that of a
paper pledge at $1.45. Despite this, OPM received 867 comments on
electronic giving (making it the second most commented upon proposed
regulation change) of which 839 comments (96.8%) expressed opposition.
Two points tended to be the basis for opposition: (1) That electronic
giving methods are under-utilized (public comment cited figures between
16% and 25% of all pledges are currently being made electronically) and
that electronic giving implementation rates have been weak; and (2)
that the removal of a giving method is contrary to typical nonprofit
fundraising practices which are aimed at offering donors a wide array
of giving methods. OPM responds to the first of these by pointing out
that slow implementation is the cause of under-utilization and that
proper analysis of electronic giving utilization requires segregation
of Federal employees that are not offered an electronic giving method.
In other words, OPM's analysis indicates that only 74.1% of all Federal
employees were offered an electronic giving option in 2012 and, of
those that contributed, one third gave electronically. However, OPM
concedes the second point and acknowledges that removing a giving
option could hinder the campaign. Therefore, this final rule removes
only cash as a giving method.
(6) Training and Oversight. OPM proposed to modify Sec. 950.104 to
provide for additional training and oversight of the LFCC. The training
would be conducted by OPM staff and would focus on oversight
responsibilities, charity eligibility requirements, and how to select
an organization to market the campaign and review/approve its
reimbursable marketing expenses. The proposed regulation was made in
line with the Commission's recommendation to ``Improve the governance
of the CFC program at the local level'' in which the Commission
specifically suggested ``[requiring] all LFCC members to participate in
annual or periodic training.'' OPM received 64 comments on training and
oversight, making it the least commented upon proposed regulation. Of
those, 34 comments (53.1%) supported expanded training opportunities.
Those that opposed assumed OPM has a lack of personnel and budgetary
resources to offer such training; however, OPM points out that much of
the training has already been developed and is frequently presented by
its current staff. Furthermore, much of the training and certification
processes can be presented in a web-based format. These points mean
that training costs to OPM will be minimal. Therefore, this final rule
adopts the proposed change without revision.
(7) Elimination of Paper Processes. OPM proposed to modify Sec.
950.104 to eliminate printing and distributing the Charity List in an
effort to reduce paper processes. Rather, this list will be made
available exclusively through electronic means. This change was meant
to reduce overhead costs and increase efficiency in the administration
of the CFC program. This proposed change is in line with the
Commission's recommendation to ``Accelerate efforts to `go green',
reducing paper processes within the CFC as much as possible'' and to
``Monitor overall campaign costs to seek continued efficiencies.'' OPM
received 245 comments pertaining to the elimination of paper processes,
of which 225 comments (91.8%) were opposed. Most of these comments
cited the fact that many federal employees do not have workplace access
to the internet. Still others commented that OPM didn't address paper
processes such as charity applications and audit guides. OPM
acknowledges that not all employees have access to the internet and
points out that other paper processes were not included in the proposed
regulations as they do not require regulatory changes. With this in
mind, OPM enacts this final rule which retains the current requirements
pertaining to the contents and format of pledge forms and charity lists
as well as the information that must be contained within an individual
charity listing remain in effect for both printed and electronic pledge
forms and charity lists.
(8) Streamlining Campaign Administration. Under current
regulations, many campaign administration functions are performed by a
number of Principal Combined Fund Organizations (PCFOs) supporting
local campaigns throughout the country. OPM continues to believe that a
centralized approach will benefit from economies of scale and
ultimately reduce overhead costs. Accordingly, OPM proposed to modify
its regulations at Sec. 950.105 to eliminate the PCFOs. In their
place, OPM proposed to consolidate responsibilities for back office
functions and establish one or more Central Campaign Administrators
(CCA). The CCA would either perform these functions itself or would set
up
[[Page 21584]]
regional receipt and disbursement centers. OPM further proposed that
the LFCC may engage a ``marketing firm'' to continue outreach to
Federal, Postal and military personnel, functions currently coordinated
by the PCFOs. This recommendation parallels the Commission's
recommendation to ``Consolidate PCFO back office functions into
regional receipt and disbursement centers or a national center''. The
Commission, likewise, noted, ``with concern, the cost of the CFC is
driven up significantly by having numerous PCFOs engaged in similar
back-office functions like processing receipt and distribution of
contributions.'' OPM received 245 comments pertaining to streamlining
campaign administration of which 205 comments (83.7%) were opposed. The
primary reason cited for opposition was, again, a perceived loss of
``local touch''. However, OPM notes that the response in opposition to
this proposed regulation change (accounting for 14.8% of all submitted
comments) was not as great as it was to proposed changes to local
governance structure (which accounted for 44.5% of all submitted
comments). This reasonable conclusion is that there is far less of a
fear that the elimination of PCFOs will reduce the ``local touch'' of
the CFC. Additionally, OPM points out that the elimination of the role
of PCFOs does not necessarily mean that the organizations that
currently serve in this capacity will no longer have a place within the
CFC. OPM recognizes that these organizations contribute added value in
the form of marketing fundraising efforts. OPM acknowledges that its
reference to a ``marketing firm'' in the proposed regulation was
mistaken by many as a for-profit marketing agency. OPM, therefore,
takes special care in this Final Rule to define an ``Outreach
Coordinator'' as ``an individual or an entity hired by the Local
Federal Coordinating Committee to conduct marketing activities, arrange
for events such as Charity Fairs, and other such efforts to educate
charities and donors regarding the program.'' In this way, OPM hopes to
maintain the skill sets of the best among the current PCFOs in a role
that actually focuses on their ability to provide ``local touch'' in
promoting the campaign while removing from those organizations'
responsibilities all redundant ``back room'' operations which would be
shifted to the CCA(s). Finally, some comment expressed opposition to
OPM's requirement that the CCA be recognized by the IRS as a 501(c)(3)
organization; however, OPM is maintaining this requirement as funds
passed from donors to the CCA may not be tax-deductible if the CCA does
not hold 501(c)(3) status. Other than the addition of the definition of
the Outreach Coordinator, this final rule adopts the proposed change
without revision.
(9) Administrative Costs. Currently, the overhead administrative
costs of much of the CFC program are paid out of donor contributions
through the campaign. OPM maintains that more transparency with respect
to administrative overhead would be beneficial to the program, to the
donors, and to the charitable organizations that receive donations
through the CFC. Accordingly, OPM proposed that the cost of the
campaign previously outlined in Sec. 950.106 instead be recovered
through application fees paid by the charitable organizations that
apply for participation in the CFC. This section also proposed how the
fees will be collected and the permissible uses of the fees.
Additionally, upfront application fees would require that charities
properly adjust for campaign costs in their own accounting, something
that the current process of cost deduction does not reflect. The
proposed regulation stemmed directly from the Commission's
recommendation to ``Increase the value proposition for donors by
shifting the burden of CFC costs from donors to participating
charities,'' more specifically ``The Commission recommends that OPM
move toward a system through which CFC costs are paid by participating
charities.'' The Commission continues: ``If all costs can be handled in
this manner, the CFC will be able to assure donors that 100 percent of
their donations reach the benefiting organizations. Even if only a
portion of the costs are paid by charities, the CFC will still be able
to assure donors that a very high portion of the money donated
ultimately reaches the beneficiaries.'' Moreover, testimony presented
to the Commission by a major national federation supported the
recommended application fee, taking its rationale a step further: ``In
addition to defraying costs, an application fee would discourage those
charities who receive no benefit from the campaign from applying,
thereby reducing administrative costs.'' It is in the spirit of these
recommendations that OPM proposed to restructure CFC cost recovery.
However, the issue of administrative costs was the most hotly contested
topic in the public comment, receiving 966 comments (the most of any
proposed regulation) of which 911 comments (94.3%) expressed concern
over proposed regulation. Interestingly, some of the concern came from
the very Commission and testimony that had originally supported the
recommendation. A vast majority of the concern stemmed from not knowing
the precise amount of the annual application fee. Many comments went so
far as to agree to an application fee in principle, but opposed the
change as long as a precise amount was not made part of the regulation.
Additionally, much concern was raised over the possibly exorbitant
amount of the application fee based on current national campaign costs;
however, these concerns did not take into account the cost avoidance to
be realized by enacting the other proposed regulations, nor did they
appear to consider that upfront application fees would reduce cost
deductions from distributions. OPM concedes too many comments expressed
that the fee would present a ``barrier to entry'' for many charities;
however, as mentioned in the testimony before the Commission, the
economics of the campaign support a reasonable barrier to entry for
charities that receive no benefit yet contribute to the cost of the
CFC. For example, of the 23,895 national, international, and local
charities that participated in the 2012 CFC, 20% received no
contributions from federal employees. However, there are costs
associated to the review of the applications and the printing of their
information in the CFC Charity Lists. These costs are ultimately borne
solely by those charities that received designations. Finally, several
voice their concerns over the nonrefundable nature of the application;
OPM dismisses these concerns in deference to the generally accepted
concept of an application fee. Therefore, this final rule enacts a
nonrefundable application/listing fee intended to cover the fixed costs
of the campaign. The amount of the fee will be determined by the
Director of OPM and announced prior to the application period. In no
case will the application fee exceed an amount equivalent to the
previous campaign period's budgeted costs divided by the number of
participating charities, nor will it be greater than 125% of the
previous year's application fee (except in the first year of this final
rule). For example, if the previous campaign period realized fixed
costs of $6 million with 25,000 listed charities, the application/
listing fee would not exceed $240. However, if the previous campaign
period's application fee was $190, then the application/listing would
not exceed $237.50. All expenses not covered through the
[[Page 21585]]
collection of application fees will be deducted from distributions.
(10) Streamlined Application Process. Believing there were
efficiencies to be gained in its charity application process, OPM
proposed to modify the regulations at Sec. 950.201 to reduce the
burden on charities that have previously been admitted to participate
in the program. Thus, these charities would be required to produce a
more limited specified set of documents, via a reduced application
form, to be admitted for the subsequent two years. OPM believes this
approach will provide sufficient information to evaluate the charity's
continuing eligibility while reducing unnecessary administrative
burdens on the charity. This proposed regulation was in line with the
Commission's recommendation to ``Streamline the charity application
process to reduce costs for participating charities.'' Though OPM
received only 124 comments, the 96 comments (77.4%) received in favor
of the proposed regulation made it the most amenable of the proposed
changes. This final rule enacts the proposed change without revision.
(11) Audit of Small Charities. OPM proposed to modify its
regulations at Sec. 950.203 to waive the audit requirement for
national organizations reporting less than $100,000 in annual revenue
to the IRS. In addition, OPM proposed that an organization with annual
revenue of at least $100,000 but less than $250,000 not be required to
undergo an audit, but have their statements reviewed by an independent
certified public accounting firm. This would remove a disproportionate
burden on small charities. This proposed regulation parallels the
Commission's recommendation to ``Consider a tiered process for
application requirements to reduce for small local charities the
disproportionate burden of obtaining annual audited financial
statements.'' Although OPM received only 48 comments pertaining to the
audit of small charities, 20 comments (27.8%) were opposed, most of
them on the grounds that the proposed change constitute a lowering of
accountability standards. OPM recognizes this concern; however, it is
pointed out that smaller charities pose the smallest of accountability
threats. This final rule, therefore, sets for the proposed change
without revision.
(12) Oversight of Federations. OPM proposed to strengthen its
regulations regarding federations to increase accountability and
transparency. OPM proposed changes to Sec. 950.301 to specify that
federations provide a copy of each member organization's application,
require dates upon which disbursements must be made to members, add
additional reporting requirements, and prohibit deductions of dues/fees
from the disbursement of CFC contributions. Additionally, invoicing
member organizations for federations' services rendered would require
that charities properly adjust for campaign costs in their own
accounting, something that the current process of federation fee
deduction does not reflect. The proposed changes were in accordance
with the Commission's recommendations to ``Strengthen CFC regulations
regarding federations to increase transparency and accountability'' in
which the Commission specifically cited federations' governance
structures and potential conflicts of interest; administrative fees
charged to federation members; lack of timeliness in the disbursement
of funds to federation members; and need for improved record keeping.
Although the proposed change attracted a somewhat limited response of
only 201 comments (14.5% of all the 1,382 comments submitted), the 178
comments in opposition (88.7% of those pertaining to oversight of
federations, most of which appear to be a form letter) tended to assume
that the proposed changed prevented federations from charging their
member organizations fees for services rendered. However, OPM points
out that this is not the case and, instead, federations may invoice
their members separately from CFC distributions, thereby making
transparent the cost to organizations. While several federations
commented that the proposed regulation amounts to ``overreach and
interference with the relationship between a federation and its member
organizations . . . above and beyond the CFC in its scope,'' OPM's
position is to assure that maximum transparency exists for CFC donors
and participating charities. This final rule is enacted without
revision.
(13) Payroll Deduction Disbursements. OPM proposed to standardize
and improve how payroll offices provide donor pledge reports to
campaigns. OPM proposed changes to former Sec. 950.901 (Sec. 950.801
in the proposed regulations) to require payroll offices to either
distribute funds to the charities directly or, if funds are transmitted
to the CCA, provide more detailed reports. Currently, Federal payroll
office disbursement reports vary in format and level of detail, which
adds to the administrative costs of the campaign administrators
responsible for ensuring the accuracy of disbursements to designated
charities. The proposed change was in line with the Commission
recommendation to ``Standardize and improve how payroll offices provide
donor pledge reports to campaigns.'' OPM received 113 comments of which
77 comments (68.1%) were in opposition, specifically with the idea of
payroll offices disbursing campaign contributions directly to
charities. While most comments convey a favorable opinion of OPM's
proposal to standardize payroll office reporting, the primary complaint
rests with some payroll offices' current challenges in correctly
disbursing funds to PCFOs. OPM recognizes this concern and enacts this
final rule to require payment to CCA(s), not directly to designated
charities.
Other Areas of Public Comment
(14) Commission Recommendations Not Requiring Regulatory Change.
Much comment was received concerning Commission recommendations that
were not considered in the proposed regulatory changes. These include
implementation of survey systems; establishment of universal giving;
and several other points regarding oversight and cost reduction. These
recommendations are currently being evaluated, though outside the
purview of the proposed regulation changes.
(15) Provisions on Discrimination. OPM received a number of
comments regarding a perceived change in policy on discrimination. As
stated in the proposed regulation changes, Sec. 950.110 was merely
updated to meet current legal standard and, therefore, was not being
considered for change. Some public comment challenged the basis for the
update, claiming they are ``not aware of any `current' legal standards'
that require'' the update to the regulation; however, OPM interprets
federal law which bars discrimination ``on the basis of conduct which
does not adversely affect the performance of the employee'' (5 U.S.C.
Sec. 2302(b)(10)) in a way that justifies the update. Furthermore,
some public comment reflected a perception that the discrimination
policy was binding on CFC-participating charities. OPM suggests this is
the result of a misreading of the regulations as the regulation clearly
states ``Nothing herein denies eligibility to any organization, which
is otherwise eligible under this part to participate in the CFC, merely
because such organization is organized by, on behalf of, or to serve
persons of a particular race, ethnicity, color, religion, sex, gender
identity, national origin, age, disability, sexual
[[Page 21586]]
orientation, or genetic background.'' OPM's policy is only with regard
to the execution of the campaign in the federal workplace (i.e., the
Central Campaign Administrator); and to Family Support and Youth
Activities (FSYA) located on military installations in the United
States and Family Support and Youth Programs (FSYP) as discussed in
Sec. 950.202.
(16) Native American Organizations Formed Under IRC Sec. 7871. A
few comments were received regarding the eligibility of organizations
established under Internal Revenue Code (IRC) Sec. 7871. OPM
recognizes that such organizations enjoy the same benefits as 501(c)(3)
organizations in that contributions made to them are tax-deductible to
the donor. However, because these organizations are allowed to apply
for recognition by the IRS under IRC Sec. 501(c)(3) without losing any
benefits afforded to them under IRC Sec. 7871, this final rule will
continue to require these organizations to secure determination letters
from the IRS that they are recognized as 501(c)(3) organizations. This
determination is in holding with rules that currently apply to other
organizations that are ``tax-deductible'' without holding 501(c)(3)
status.
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 Orders 12866 and 13563, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with Executive Orders 12866 and 13563.
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.
U.S. Office of Personnel Management.
Katherine Archuleta,
Director.
For the reasons discussed in the preamble, the Office of Personnel
Management amends 5 CFR part 950 as set forth below.
0
1. Revise part 950 to read as follows:
PART 950--SOLICITATION OF FEDERAL CIVILIAN AND UNIFORMED SERVICE
PERSONNEL FOR CONTRIBUTIONS TO PRIVATE VOLUNTARY ORGANIZATIONS
Subpart A--General Provisions
Sec.
950.101 Definitions.
950.102 Scope of the Combined Federal Campaign.
950.103 Establishing Local Federal Coordinating Committees.
950.104 Local Federal Coordinating Committee responsibilities.
950.105 Federal Agency Head responsibilities.
950.106 Central Campaign Administrator (CCA).
950.107 Campaign expense recovery.
950.108 Preventing coercive activity.
950.109 Avoidance of conflict of interest.
950.110 CCA Prohibited discrimination.
Subpart B--Eligibility Provisions
950.201 Charity eligibility.
950.202 Charity eligibility requirements.
950.203 Public accountability standards.
950.204 Eligibility decisions and appeals.
Subpart C--Federations
950.301 Federation eligibility.
950.302 Responsibilities of federations.
Subpart D--Campaign Information
950.401 Campaign and publicity information.
950.402 Pledge form.
Subpart E--Miscellaneous Provisions
950.501 Release of contributor information.
950.502 Solicitation methods.
950.503 Sanctions and penalties.
950.504 Records retention.
950.505 Sanctions compliance certification.
Subpart F--CFC Timetable
950.601 Campaign schedule.
Subpart G--Payroll Withholding
950.701 Payroll allotment.
Subpart H--Accounting and Distribution
950.801 Accounting and distribution.
Authority: E.O. 12353 (March 23, 1982), 47 FR 12785 (March 25,
1982), 3 CFR, 1982 Comp., p. 139; E.O. 12404 (February 10, 1983), 48
FR 6685 (February 15, 1983); Pub. L. 100-202, and Pub. L. 102-393 (5
U.S.C. 1101 Note).
Subpart A--General Provisions
Sec. 950.101 Definitions.
As used in this part:
Administrative Expenses means the overhead costs of the
participating organization based on information from the Internal
Revenue Service Form 990.
Application Fee means a non-refundable fee paid by a charitable
organization in each campaign period for which it seeks to participate.
Campaign Expenses means the cost of the administration of the
campaign by the Central Campaign Administrator and any Outreach
Coordinators.
Central Campaign Administrator means the organization(s)
responsible for developing and maintaining the CFC Web site and charity
application module, and to which OPM may assign responsibility for
making distributions to charities.
Charity List means the official list of charities approved by OPM
for inclusion in the CFC.
Combined Federal Campaign or Campaign or CFC means the charitable
fundraising program established and administered by the Director of the
Office of Personnel Management (OPM) pursuant to Executive Order No.
12353, as amended by Executive Order No. 12404, and all subsidiary
units of such program.
Director means the Director of the Office of Personnel Management
or his/her designee.
Distribution fee means amount assessed against pledges received
should the application and listing fees not cover all the costs of the
campaign.
Employee means any person employed by the Government of the United
States or any branch, unit, or instrumentality thereof, including
persons in the civil service, uniformed service, foreign service, and
the postal service.
Family Support and Youth Activities (FSYA) means an organization on
a domestic military base recognized by the Department of Defense as
providing programs for military families on the base.
Family Support and Youth Programs (FSYP) means an organization on a
non- domestic military base recognized by the Department of Defense as
providing programs for military families on the base.
Federation or Federated Group means a group of voluntary charitable
human health and welfare organizations created to supply common
fundraising, administrative, and management services to its constituent
members.
Independent Organization means a charitable organization that is
not a member of a federation for the purposes of the Combined Federal
Campaign.
International General Designation Option means an option available
to donors under which his or her gift is distributed to all of the
international organizations listed in the International Section of the
Charity List in the same proportion as all of the international
organizations received designations in the local CFC. This option will
have the code IIIII.
International Organization means a charitable organization that
provides
[[Page 21587]]
services either exclusively or in a substantial preponderance to
persons in areas outside of the United States.
Listing Fee means a non-refundable annual fee charged only to
charitable organizations approved for participation.
Local Federal Coordinating Committee means the group of Federal
officials designated by the Director to oversee the CFC in a zone and
to assist the Director with the charity application reviews.
Organization or Charitable Organization means a non-profit,
philanthropic, human health and welfare organization.
Outreach Coordinator means an individual or an entity hired by the
Local Federal Coordinating Committee to conduct marketing activities,
arrange for events such as Charity Fairs, and educate charities and
donors regarding the program.
Services means the real services, benefits, assistance or program
activities provided by charitable organizations. These may include, but
are not limited to, medical research and assistance, education,
financial assistance, mentoring, conservation efforts, spiritual
development, the arts, and advocacy.
Solicitation means any action requesting a monetary donation,
either by payroll deduction or credit card, on behalf of charitable
organizations.
Sec. 950.102 Scope of the Combined Federal Campaign.
(a) The CFC is the only authorized solicitation of employees in the
Federal workplace on behalf of charitable organizations. A campaign may
be conducted only during the period running from September 1 through
January 15, as determined by the Director. It must be conducted at
every Federal agency in accordance with the regulations in this part.
No other monetary solicitation on behalf of charitable organizations
may be conducted in the Federal workplace, except as follows:
(1) Federal agencies must provide information about the CFC to new
employees at orientation. New employees may make pledges within 30 days
of entry on duty, if outside of the campaign period.
(2) The Director may grant permission for solicitations of Federal
employees, outside the CFC, in support of victims in cases of
emergencies and disasters. Emergencies and disasters are defined as any
hurricane, tornado storm, flood, high water, wind-driven water, tidal
wave, tsunami, earthquake, volcanic eruption, landslide, mudslide,
snowstorm, drought, fire, explosion, or other catastrophe in any part
of the world. Any special solicitations will be managed through a
Disaster Relief Program developed by OPM.
(b) The regulations in this part do not apply to the collection of
gifts-in-kind, such as food, clothing and toys, or to the solicitation
of Federal employees outside of the Federal workplace as defined by the
applicable Agency Head consistent with General Services Administration
regulations and any other applicable laws or regulations.
(c) The Director may exercise general supervision over all
operations of the CFC, and take all necessary steps to ensure the
achievement of campaign objectives, including but not limited to the
following:
(1) Any disputes relating to the interpretation or implementation
of this part may be submitted to the Director for resolution. The
decisions of the Director are final for administrative purposes.
(2) The Director may 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 may
resolve any issues reported and assess sanctions or penalties, as
warranted under Sec. 950.503.
(d) Current Federal civilian and active duty military employees may
make contributions using payroll deduction or by electronic means,
including credit/debit cards and e-checks, 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 by electronic means, including credit
cards, as approved by the Director. For the first five campaign periods
after implementation of these regulations, LFCCs will be permitted to
still provide donors the option of using non-electronic pledging based
on guidance issued by OPM.
(e) Heads of departments or agencies may establish policies and
procedures applicable to solicitations conducted by organizations
composed of civilian employees or members of the uniformed services
among their own members for organizational support or for the benefit
of welfare funds for their members. Such solicitations are not subject
to these regulations, and therefore do not require permission of the
Director.
Sec. 950.103 Establishing Local Federal Coordinating Committees.
(a) The Director, in his or her sole discretion, will establish,
maintain, and, from time to time, revise an official list of campaign
zones.
(b) For each campaign zone, the Director will establish a Local
Federal Coordinating Committee (LFCC) for the purpose of governing the
campaign for that zone. It will be the responsibility of the Federal
Executive Board or lead agency (as identified by the Director) in the
zone to ensure an active and diverse membership, with a minimum of
three members. The LFCC shall consist of the following:
(1) Members to be drawn from local Federal inter-agency
organizations, such as Federal Executive Boards, or from personnel
assigned to the military installation and/or agency identified as the
lead agency in that zone;
(2) Representation from local Federal Agencies located within the
zone, representing a cross-section of agencies with regard to personnel
types and locations; and
(3) If approved by the Director, representatives of employee unions
and other employee groups.
(c) The members of each LFCC must select a Chair and a Vice Chair.
The Chair and Vice Chair positions will be rotated among the LFCC
members. The term of the Chair and Vice Chair may not exceed three
consecutive years. Any LFCC Chair or Vice Chair is subject to removal
by the Director, in his sole and unreviewable discretion.
(d) The LFCC will ensure that, to the extent reasonably possible,
every employee is given the opportunity to participate in the CFC.
Sec. 950.104 Local Federal Coordinating Committee responsibilities.
(a) The LFCC is to serve as the central source of information
regarding the CFC among Federal employees in their zone. All members of
the LFCC must develop an understanding of campaign regulations and
procedures.
(b) The responsibilities of the LFCC members include, but are not
limited to, the following:
(1) Attend required LFCC training and obtain certification in LFCC
operations;
(2) Maintain minutes of LFCC meetings and respond promptly to any
request for information from the Director;
(3) Name a LFCC Chair and Vice Chair and notify the Director when
there is a change in either position;
(4) Assist in determining the eligibility of organizations that
apply to participate in the campaign as required and assigned by OPM;
[[Page 21588]]
(5) Provide training to employees in the methods of non-coercive
solicitation;
(6) Provide instructions to employees regarding the process for
making donations and designating the charitable organizations to
receive their donations.
(7) Take appropriate measures to protect potential donors from
coercion to participate in the campaign.
(8) Bring any allegations of potential donor coercion to the
attention of the employee's agency and provide a mechanism to review
employee complaints of undue coercion in Federal fundraising. Federal
agencies shall provide procedures and assign responsibility for the
investigation of such complaints. The agency official responsible for
conducting the campaign is responsible for informing employees of the
proper channels for pursuing such complaints.
(9) Notify the Director of issues concerning the campaign that the
LFCC cannot resolve by applying these regulations. The LFCC must abide
by the Director's decisions on all matters concerning the campaign.
(10) Review, approve and provide authorization to the Central
Campaign Administrator for payments to the outreach coordinator in an
efficient and effective manner as outlined in the agreement between OPM
and the Central Campaign Administrator.
(11) Conduct an effective and efficient campaign in a fair and
even-handed manner aimed at collecting the greatest amount of
charitable contributions possible. LFCC's should afford federated
groups and agencies with representatives in the campaign area adequate
opportunity to offer suggestions relating to the operation of the
campaign.
(c) The LFCC may hire an Outreach Coordinator to provide local
operation marketing support to their campaign, including developing
marketing plans and materials, employee training, campaign event and
activity support, and the printing and distribution of CFC Charity
Lists and pledge forms as permitted in 5 CFR Sec. 950.102(d).
(d) Monitor the work of the Outreach Coordinator, ensuring
compliance with these regulations, as well as performance as outlined
in agreement with the LFCC.
Sec. 950.105 Federal Agency Head responsibilities.
(a) The agency head at each Federal installation within a campaign
area should:
(1) Become familiar with all CFC regulations.
(2) Cooperate with the members of the LFCC in organizing and
conducting the campaign.
(3) Initiate official campaigns within their offices or
installations and provide support for the campaign.
(4) Assure the campaign is conducted in accordance with these
regulations.
(5) Appoint an employee to oversee the Agency campaign.
(6) Establish a network of employees in support of the Agency's
campaign.
(b) Agency heads may not discontinue solicitation of Federal
employees during the campaign solicitation period within their
organization without the written approval of the Director.
Sec. 950.106 Central Campaign Administrator (CCA).
(a) OPM may contract with one or more organizations classified by
the Internal Revenue Service as 501(c)(3) organizations, to perform the
centralized fiscal and administrative functions of the CFC. One
organization will be responsible for developing and maintaining a
centralized Web site for the CFC that will include an online
application function for charities applying to participate in the CFC
and an online pledging function for Federal donor use. All
organizations will be responsible for disbursing funds received from
the Federal payroll offices or service providers. If OPM contracts with
more than one organization, the disbursement responsibilities will be
divided between them based on Federal Shared Service Centers and
Federal payroll offices. For example, if OPM contracts with four
organizations, one would handle all agencies that use the National
Finance Center as their Shared Service Center regardless of the
location of the donor or the agency. Only non-CFC participating
organizations may be selected as CCAs.
(b) In the event that there is no qualified CCA, no workplace
solicitation of any Federal employee may be authorized and CFC payroll
allotments would not be accepted or honored.
Sec. 950.107 Campaign expense recovery.
(a) The costs of outreach approved by the LFCC, training and
traveling for the LFCC, and CCA will be recovered through application/
listing fees and/or distribution fees paid by charitable organizations
. The fee structure will be determined annually by the Director based
on estimated costs of administering the central campaign and local
marketing efforts. This structure will be announced no later than
October 31 of the year preceding the campaign. Any excess funds from
applications fees over expenses will be rolled over to the following
campaign and be considered when setting the rates. Marketing expenses
will not exceed a percentage of receipts as determined by the Director.
No expenses for food or entertainment may be reimbursed to the Outreach
Coordinator. Only travel-related food expenses may be reimbursed to the
LFCC in accordance with the Federal Travel Regulations.
(b) Charity application fees are due at the time of the filing of
the application or the application deadline, whichever occurs last. A
charity that has not paid the full application fee at that time may not
participate in the CFC that campaign year.
(c) An additional listing fee will be applied to all charities
approved for participation. These charities will not be listed in paper
or electronic Charity Lists, and CFC contributions will not be
processed on their behalf, if they do not submit the listing fee prior
to the annual date set by OPM.
(d) The distribution fee will be assessed against pledges received
should the application and listing fees not cover all the costs of the
campaign.
Sec. 950.108 Preventing coercive activity.
True voluntary giving is fundamental to Federal fundraising
activities. Actions that do not allow free choices or create the
appearance that employees do not have a free choice to give or not to
give, or to publicize their gifts or to keep them confidential, are
contrary to Federal fundraising policy. Activities contrary to the non-
coercive intent of Federal fundraising policy are not permitted in
campaigns. They include, but are not limited to:
(a) Solicitation of employees by their supervisor or by any
individual in their supervisory chain of command. This does not
prohibit the head of an agency to perform the usual activities
associated with the campaign kick-off and to demonstrate his or her
support of the CFC in employee newsletters or other routine
communications with the Federal employees.
(b) Supervisory inquiries about whether an employee chose to
participate or not to participate or the amount of an employee's
donation. Supervisors may be given nothing more than summary
information about the major units that they supervise.
(c) Setting of 100 percent participation goals.
(d) Establishing personal dollar goals and quotas.
(e) Developing and using lists of non-contributors.
(f) Providing and using contributor lists for purposes other than
the routine
[[Page 21589]]
collection and forwarding of contributions and allotments, and as
allowed under Sec. 950.501.
(g) Using as a factor in a supervisor's performance appraisal the
results of the solicitation in the supervisor's unit or organization.
Sec. 950.109 Avoidance of conflict of interest.
Any Federal employee who serves on the LFCC, or as a Federal agency
fundraising program employee, shall not serve in any official capacity
or participate in any decisions where, because of membership on the
board or other affiliation with a charitable organization, there could
be or appear to be a conflict of interest under any statute,
regulation, Executive order, or applicable agency standards of conduct.
Sec. 950.110 CCA Prohibited discrimination.
Discrimination for or against any individual or group on account of
race, ethnicity, color, religion, sex (including pregnancy and gender
identity), national origin, age, disability, sexual orientation,
genetic information, or any other non-merit-based factor is prohibited
in all aspects of the management and the execution of the CFC. Nothing
herein denies eligibility to any organization, which is otherwise
eligible under this part to participate in the CFC, merely because such
organization is organized by, on behalf of, or to serve persons of a
particular race, ethnicity, color, religion, sex, gender identity,
national origin, age, disability, sexual orientation, or genetic
background.
Subpart B--Eligibility Provisions
Sec. 950.201 Charity eligibility.
(a) The Director shall annually:
(1) Determine the timetable and other procedures regarding
application for inclusion in the Charity List; and
(2) Determine which organizations among those that apply qualify to
be included in the National/International, International and Local
parts of the Charity List. 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 Charity List will include each organization's CFC code and
other information as determined by OPM.
(c) A charity must submit the full application the initial year it
applies to participate in the CFC. In lieu of a full application, a
charity may submit a verification application for the two years
immediately following its submission of a full application.
(1) A verification application consists of certification of all
applicable statements required by Sec. Sec. 950.202 and 950.203, and
submission of an IRS Form 990 or pro forma IRS Form 990, as defined in
Sec. 950.203(a)(3).
(2) An organization that did not apply or was not approved for
participation in the preceding campaign must submit a full application.
Sec. 950.202 Charity eligibility requirements.
(a) The requirements for an organization to be listed in the
Charity List shall include the following:
(1) Certification that it provides or conducts real services,
benefits, assistance, or program activities (hereafter listed as
``services''), in 15 or more different states or one or more foreign
countries over the 3 calendar year period immediately preceding January
1 of the campaign application year. A schedule listing a detailed
description of the services in each state (minimum 15) or foreign
countries (minimum 1), including the year of service and documenting
the location and date and year of each service, and the number of
beneficiaries of each such 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. It must be clear in the documentation submitted that the
organization provided at least one human health and welfare service in
the calendar year prior to the year for which the organization is
applying. Publications or other documents in lieu of a schedule
detailing this information are not acceptable.
(i) Local charitable organizations are not required to have
provided services in 15 states or a foreign country over the prior 3
years. The schedule for local organizations is only required to
document services in their local area. Local organizations must also
certify that the Organization Address submitted with the application is
the primary location where the organization's services are rendered
and/or its records are maintained.
(ii) This requirement cannot be met solely by the provision of
services via telephone, unless the service is emergency in nature such
as a suicide prevention hotline. The requirement is also not met solely
by disseminating information and publications via the U.S. Postal
Service or the Internet, unless it meets the criteria for web- based
services as described in Sec. 950.202(a)(1)(iii), or a combination
thereof.
(iii) Real services for web-based service organizations may be
considered if the organization provides service logs or other records
indicating the geographic distribution of users in each state. The
organization must demonstrate the scope of services received by users
over the three-year period immediately preceding the start of the
campaign year involved. Reports that reflect only the number of hits or
visits to a Web site are not sufficient to establish the provision of
real services. In addition, two of the three following types of
information must be provided to demonstrate the provision of real
services, benefits, assistance, or program activities:
(A) Evidence that recipients, including members of the general
public, dues paying members or affiliate organizations, have registered
for use of the Web site;
(B) Summary reports that document customer feedback, through
service satisfaction or utilization surveys, demonstration of two-way
communications, such as an online class, or other mechanisms; and
(C) Documented evidence that recipients of web-based services paid
a fee for the service.
(iv) Providing listings of affiliated groups does not 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. Schedules that describe
activities conducted by an entity other than the applicant, such as a
chapter or a support group, must include information documenting the
applicant's role in the delivery of the service. Details may include
items such as whether the chapter is funded by the applicant or how the
applicant assisted in the delivery of the service. Applications that
fail to include a description of how
[[Page 21590]]
the applicant itself provides service may result in a denial.
(v) Organizations that provide 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.
(vi) 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. Organizations that provide services in
one location may only count the state in which the services are
provided toward their eligibility to participate on the national
charity list. However, an organization may have beneficiaries from
several states and want service to those beneficiaries considered
toward the 15-state requirement to participate on the national Charity
List. If an organization can document that the services are subsidized
or were provided free-of-charge, and list the value of those services
to each of the beneficiaries, then the service to the beneficiary may
be considered a service in the state of the beneficiary's residence,
similar to a financial grant or scholarship. For example, a medical
institution providing free housing to family members of the patient
during the length of the patient's stay must list the location of the
medical institution, the city/state of residence of each beneficiary,
the dates of service, and the value of the housing provided to each
beneficiary's family members.
(vii) An organization's role in providing information to the media,
such as authorship of an article for a newspaper, magazine, or journal,
or serving as an interviewee or reference for a television news
program, or the authorship of a book, does not in itself constitute a
real service for CFC purposes. Likewise, the production and/or
distribution of information, such as a report based on research,
surveys conducted by the applicant organization, or publication of a
policy position paper, does not, in itself, constitute an eligible
service. With regard to media-related activities, research, and
reports, the applicant must describe the manner in which beneficiaries
requested or used the document or information in order to establish the
provision of a real services, benefit, assistance, or program activity.
(viii) 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.
Factors that OPM will consider in determining whether an organization's
services, benefits, assistance or other program activities are de
minimis include, but are not limited to: nature and extent of the
service, benefit, assistance or activity; frequency, continuity, and
duration; value of financial assistance awarded to individuals or
entities; impact on, or benefit to, beneficiaries; and number of
beneficiaries.
(2) Certification 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. 170(c)(2). The CFC
will verify that each applicant's name and Employer Identification
Number appears in the IRS Business Master File (BMF). If the
organization does not appear in the BMF, one of the following must
accompany the application:
(i) An affirmation letter from the IRS, dated on or after January 1
of the campaign year to which the organization is applying, that
verifies the organization's current 501(c)(3) tax-exempt status.
(ii) A local affiliate of a national organization that is not
separately incorporated 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. The letter must be
signed and dated on or after October 1 of the calendar year preceding
the campaign year for which the organization is applying.
(iii) For central organizations that are churches, the CFC will
accept a copy of its most recently published listing (such as a church
directory) of section 501(c)(3) organizations that are included in the
group exemption held by the central organization. A subordinate may
alternatively obtain a letter from the central organization affirming
the subordinate's status as an organization exempt under section
501(c)(3) of the Internal Revenue Code that is included in the group
exemption held by the central organization.
(iv) Family Support and Youth Activities (FSYA) located on military
installations in the United States and Family Support and Youth
Programs (FSYP) located on military installations overseas must provide
a copy of certification by the commander of a military installation, as
outlined in paragraphs (a)(3) and (4) of this section, to demonstrate
tax-exempt status.
(3) Family support and youth activities or programs certified by
the commander of a military installation as meeting the eligibility
criteria contained in paragraphs (a)(3) and (4) of this section may
appear on the list of local organizations and be supported from CFC
funds. Family support and youth activities may participate in the CFC
as a member of a federation at the discretion of the certifying
commander.
(4) A family support and youth activity or program must:
(i) Be a nonprofit, tax-exempt organization that provides family
service programs or youth activity programs to personnel in the Command
and be a Non-Appropriated Fund Instrumentality that supports the
installation MWR/FSYA/FSYP program. The activity must not receive a
majority of its financial support from appropriated funds.
(ii) Have a high degree of integrity and responsibility in the
conduct of their affairs. Contributions received must be used
effectively for the announced purposes of the organization.
(iii) Be directed by the base Non-Appropriated Fund Council or an
active voluntary board of directors which serves without compensation
and holds regular meetings.
(iv) Conduct its fiscal operations in accordance with a detailed
annual budget, prepared and approved at the beginning of the fiscal
year. Any significant variations from the approved budget must have
prior authorization from the Non-Appropriated Fund Council or the
directors. The family support and youth activities must have accounting
procedures acceptable to an installation auditor and the inspector
general.
(v) Have a policy and practice of nondiscrimination on the basis of
race, color, religion, sex, sexual orientation, gender identity or
national origin applicable to persons served by the organization.
(vi) Prepare an annual report which includes a full description of
the organization's activities and accomplishments. These reports must
be made available to the public upon request.
Sec. 950.203 Public accountability standards.
(a) To ensure organizations wishing to solicit donations from
Federal employees in the workplace are portraying accurately their
programs and benefits, each organization seeking eligibility must meet
annually applicable standards and certification requirements. Each
organization, other
[[Page 21591]]
than FSYA or FSYP, wishing to participate must:
(1) Certify that the organization is a human health and welfare
organization providing services, benefits, or assistance to, or
conducting activities affecting, human health and welfare. The
organization's application must provide documentation describing the
health and human welfare benefits provided by the organization within
the previous calendar year;
(2) Subject to the exceptions listed in this section, certify that
it accounts for its funds on an accrual basis in accordance with United
States or International 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 statements must include all statements required for
voluntary health and welfare organizations by the United States
Financial Accounting Standards Board or the International Accounting
Standards Board. 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 2014 application must
cover the fiscal period ending on or after June 30, 2012.
(i) An organization with annual revenue of less than $100,000
reported on its IRS Form 990 or pro forma IRS Form 990 submitted to the
CFC is not required to undergo an audit, submit audited financial
statements, or to account for its funds on an accrual basis in
accordance with generally accepted accounting principles. 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.
(ii) An organization with annual revenue of at least $100,000 but
less than $250,000 is not required to undergo an audit. The
organization must certify that its financial statements are reviewed by
an independent certified public accountant on an annual basis or are
audited by an independent public accountant on an annual basis. A copy
of the reviewed or audited financial statements must be included with
the application.
(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, and all supplemental schedules, with the
application, or if not required to file an IRS Form 990, provide a pro
forma IRS Form 990. Pro forma IRS Form 990 instructions will be posted
on the OPM Web site and included in the application instructions. IRS
Forms 990EZ, 990PF, and comparable forms are not acceptable
substitutes. The IRS Form 990 and audited financial statements, if
required, 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 paragraph (a)(3) of this section.
(5) Certify that the organization is directed by an active and
responsible governing body whose members have no material conflict of
interest and, a majority of which serve without compensation.
(6) Certify that the organization's fundraising practices prohibit
the sale or lease of its CFC contributor lists.
(7) Certify that its publicity and promotional activities are based
upon its actual program and operations, are truthful and non-deceptive,
and make no exaggerated or misleading claims.
(8) Certify that contributions are effectively used for the
announced purposes of the charitable organization.
(9) Provide a statement that the certifying official is authorized
by the organization to certify and affirm all statements required for
inclusion on the Charity List.
(b) The Director shall review these applications for accuracy,
completeness, and compliance with these regulations. Failure to supply
any of this information may be judged a failure to comply with the
requirements of public accountability, and the charitable organization
may be ruled ineligible for inclusion on the Charity List.
(c) The Director may request such additional information as the
Director deems necessary to complete these reviews. An organization
that fails to comply with such requests within 10 calendar days from
the date of receipt of the request may be judged ineligible.
(d) The required certifications and documentation must have been
completed and submitted prior to the application filing deadline.
(e) The Director may waive any of these standards and
certifications upon a showing of extenuating circumstances.
Sec. 950.204 Eligibility decisions and appeals.
(a) Organizations applying for participation in the CFC will be
notified of the eligibility decision electronically via the email
address(es) listed in the charity application.
(b) Organizations that apply and are denied eligibility for
inclusion on the Charity List may appeal the decision by submitting a
request for reconsideration. This request must be received within 10
business days from the date the decision to deny eligibility was sent
via email and shall be limited to those facts justifying the reversal
of the original decision.
(c) All appeals must:
(1) Be in writing;
(2) Be received by the Director within 10 business days of the date
the decision to deny the application was sent via email;
(3) Include a statement explaining the reason(s) why eligibility
should be granted; and
(4) Include a copy of the communication from OPM disapproving the
original application and supporting information to justify the reversal
of the original decision.
(d) Applications or appeals of an adverse eligibility determination
must be submitted in a timely manner as indicated above.
(e) Appeals may not be used to supplement applications with
documents that did not exist or were not set forth in final form prior
to the application deadline. For example, audited financial statements
that were not prepared or were in draft form at the time of the
deadline cannot be used to document eligibility. Similarly, charities
that had applied for, but had not obtained, 501(c)(3) status from the
IRS by the CFC application deadline are not eligible to participate for
that campaign year.
(f) The Director's decision is final for administrative purposes.
Subpart C--Federations
Sec. 950.301 Federation eligibility.
(a) The Director may recognize federations that conform to the
requirements set by the Director and are eligible to receive
designations. In order to determine whether the Director will recognize
a federation, the Director may request evidence of corrective action
regarding any prior violation of regulation or directive, sanction, or
[[Page 21592]]
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. The Director also
reserves the authority to place a moratorium on the recognition of
federations from time to time.
(b) By applying for inclusion in the CFC, federations consent to
allow the Director complete access to its and its members' CFC books
and records and to respond to requests for information by the Director.
(c) An organization may apply to the Director for inclusion as a
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 federation must submit the
applications of all its proposed member organizations annually.
(d) After an organization has been granted federation status, it
may certify that its member organizations meet all eligibility criteria
of Sec. 950.202 and Sec. 950.203 to be included on the Charity List.
Federation status in a prior campaign is not a guarantee of federation
status in a subsequent campaign. Failure to meet minimum federation
eligibility requirements shall not be deemed to be a withdrawal of
federation status subject to a hearing on the record.
(e) An applicant for federation status must annually certify and/or
demonstrate:
(1) That all member organizations seeking participation in the CFC
are qualified for inclusion on the National/International or
International or Local part of the Charity List. Applicants must
provide a complete list of those member organizations it certified in
addition to each organization's complete application.
(2) That it meets the eligibility requirements and public
accountability standards contained in Sec. 950.202 and Sec. 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.
(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 two years 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 calendar
year prior to the year of the campaign for which the organization is
applying.
(3) That it does not employ in its CFC operations the services of
private consultants, consulting firms, advertising agencies or similar
business organizations to perform its policy-making or decision-making
functions in the CFC. It may, however, contract with entities or
individuals such as banks, accountants, lawyers, and other vendors of
goods and/or services to assist in accomplishing its administrative
tasks.
(f) The Director will notify a federation if it is determined that
the federation does not meet the eligibility requirements of this
section. A federation may appeal an adverse eligibility decision in
accordance with Sec. 950.204.
(g) The Director may waive any eligibility criteria for federation
status if it is determined that such a waiver will be in the best
interest of the CFC.
(h) Two organizations--American Red Cross and United Service
Organization--are exempt from the 15- member requirement of paragraph
(c) of this section.
Sec. 950.302 Responsibilities of federations.
(a) Federations must ensure that only those member organizations
that comply with all eligibility requirements included in these
regulations are certified for participation in the CFC.
(b) The Director may elect to review, accept or reject the
certifications of the eligibility of the members of federations. If the
Director requests information supporting a certification of
eligibility, that information shall be furnished promptly. Failure to
furnish such information within 10 business days of the receipt of the
request constitutes grounds for the denial of national eligibility of
that member.
(c) 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.
(d) Federations must disburse CFC funds to each member organization
without any further deductions. Membership dues, fees, or other charges
to member organizations must be assessed outside of the CFC
disbursement process.
(e) Federations must disburse CFC funds to member organizations on
a quarterly basis, at a minimum. The disbursements must be made within
the months of June, September, December, and March.
(f) Disbursements to federation members that include funds from a
non- CFC campaign must include a report that clearly identifies the
amount of CFC funds.
Subpart D--Campaign Information
Sec. 950.401 Campaign and publicity information.
(a) The specific campaign marketing and publicity information will
be developed locally, except as specified in the regulations in this
subpart. All information must be reviewed and approved by the LFCC for
compliance with these regulations and will be developed and supplied by
the LFCC or contracted agent.
(b) During the CFC solicitation period, a participating CFC
organization may distribute bona fide educational information
describing its services or programs. The organization must be granted
permission by the Federal agency installation head, or designee to
distribute the material. CFC Coordinators, Keyworkers, other employees
or members of the LFCC, are not authorized to grant permission for the
distribution of such information. If one organization is granted
permission to distribute educational information, then the Federal
agency installation head must allow any other requesting CFC
organization to distribute educational information.
(c) Organizations and federations are encouraged to publicize their
activities outside Federal facilities and to broadcast messages aimed
at Federal employees in an attempt to solicit their contributions
through the media and other outlets.
[[Page 21593]]
(d) Agency Heads are further authorized to permit the distribution
by organizations of promotional information to Federal personnel in
public areas of Federal workplaces in connection with the CFC, provided
that the manner of distribution accords equal treatment to all
charitable organizations furnishing such information for local use, and
further provided that no such distribution shall utilize Federal
personnel on official duty or interfere with Federal government
activities. LFCC members and other campaign personnel are to be
particularly aware of the prohibition of assisting any charitable
organization or federated group in distributing any type of literature,
especially during the campaign. Nothing in this section shall be
construed to require a LFCC to distribute or arrange for the
distribution of any material other than LFCC approved marketing
materials.
(e) The Campaign Charity List and pledge form are the official
sources of CFC information and shall be made available in electronic
format to all potential contributors. The Charity List and pledging
system must inform employees of their right to make a choice to
contribute or not to contribute.
(f) Campaign marketing materials must be comprised of a simple and
attractive design that is donor focused and has fundraising appeal and
essential working information. The design must focus on the CFC without
undue use of charitable organization symbols and logos or other
distractions that compete for the donor's attention.
(g) The following applies specifically to the campaign Charity
List:
(1) OPM will provide the approved Charity List as well as general
campaign information. This will include:
(i) An explanation of the payroll deduction privilege.
(ii) A description and explanation of other electronic pledging, to
include credit cards.
(iii) A statement that the donor may only designate charitable
organizations or federations that are listed in the Charity List and
that write-ins are prohibited.
(iv) Instructions as to how an employee may obtain more specific
information about the programs and the finances of the organizations
participating in the campaign.
(v) A description of employees' rights to pursue complaints of
undue pressure or coercion in Federal fundraising activities.
(2) The Charity List will consist of National/International,
International, and Local organizations. The order of these
organizations will be rotated annually in accordance with OPM
instructions. The order of listing of the federated and independent
organizations will be determined by a random selection process. 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
256 characters, of its services and programs, plus a Web site address
and telephone number for the Federal donor to obtain 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 Web site address or telephone number count toward the
256 character description.
(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,
256 character description, percentage of administrative and fundraising
expenses, Web site address and telephone number. Each organization will
be identified as National/International, International and Local,
respectively.
(h) 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 and Sec. 950.203 to be included in the
Charity List. However, 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.
950.203(a)(2), 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,
as defined in Sec. 950.203(a)(3), for CFC purposes. The local
affiliate 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.
(i) Listing local offices. Listing of a local organization, as well
as its satellite offices, is permitted, as long as there is no more
than one location within a county or parish. Each office must
individually meet all of the eligibility criteria and submit
independent documentation as required in Sec. 950.202 and Sec.
950.203 to be included in the Charity List. However, a satellite office
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.
950.203(a)(2), audited financial statements, may submit the local
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,
as defined in Sec. 950.203(a)(3), for CFC purposes. The satellite
office must submit a certification from the Chief Executive Officer
(CEO) or CEO equivalent of the local organization stating that it
operates as a bonafide office in good standing and is covered by the
local organization's 26 U.S.C. 501(c)(3) tax exemption, IRS Form 990
and audited financial statements.
(j) Multiple listing prohibited. Except as provided in paragraphs
(h) and (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.
Sec. 950.402 Pledge form.
(a) The Director will provide guidance with regard to the data
required for electronic pledge processing.
(b) An employee may not make a designation to an organization not
listed in the Charity List. All pledges must be designated to specific
CFC participating organization(s). No undesignated pledges will be
allowed.
Subpart E--Miscellaneous Provisions
Sec. 950.501 Release of contributor information.
(a) The pledge form, designed pursuant to Sec. 950.402, must allow
a contributor to indicate if the contributor will allow his or her
name, contribution amount, and home contact information to be forwarded
to the charitable organization or organizations designated.
(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 CCA to forward the contributor
information
[[Page 21594]]
for those who have indicated that they wish this information to be
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 contributor information must be
forwarded as soon as practicable after the completion of the campaign,
but in no case later than a date to be determined by OPM. The date will
be part of the annual timetable issued by the Director under Sec.
950.601(b). The federation is responsible for ensuring the information
is released to the appropriate member organization. The CCA may not
sell or make any other use of this information. Federations may not
retain donor information for their own use unless the donor made a
direct designation to the federation itself. This policy also prohibits
the sharing of donor information, even free of charge.
Sec. 950.502 Solicitation methods.
(a) Employee solicitations shall be conducted during duty hours
using methods that permit true voluntary giving and shall reserve to
the individual the option of disclosing any gift or keeping it
confidential. Campaign kick-offs, victory events, awards, and other
non-solicitation events to build support for the CFC are encouraged.
(b) Special CFC events are permitted during the campaign if
approved by the appropriate agency head or government official,
consistent with agency ethics regulations. No costs for food or
entertainment at a special event may be charged to the CFC. CFC special
events must 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. If prizes are offered, they must be
modest in nature and value. Examples of appropriate 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 event and associated prize or gift must be approved in
advance by the Agency's ethics official to ensure that the special
event is consistent with Office of Government Ethics regulations and
its own regulations and policy. No funds may be raised or collected at
these events.
Sec. 950.503 Sanctions and penalties.
(a)(1) The Director may impose sanctions or penalties on a
federation, charitable organization or Outreach Coordinator 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. A
federation, charitable organization or Outreach Coordinator 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 marketing organization.
(2) The Director may withdraw federation status with respect to a
National/International, 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 for information or cooperation, including with respect to an
investigation or in the settlement of disbursements. As stated in Sec.
950.301(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. 950.301(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 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.
(3) A federation, charitable organization or Outreach Coordinator
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.
(b) At the Director's discretion, CCAs, payroll offices and
Federations may be directed to suspend distribution of current and
future CFC donations from Federal employees to recipient organizations.
CCAs, payroll offices and Federations shall immediately place suspended
contributions in an interest bearing account until directed to do
otherwise.
Sec. 950.504 Records retention.
Federations, CCAs and other participants in the CFC shall retain
documents pertinent to the campaign for at least three completed
campaigns. For example, documentation regarding the 2014 campaign must
be retained through the completion of the 2016, 2017 and 2018 campaigns
(i.e. until early 2020). Documents requested by OPM must be made
available within 10 business days of the request.
Sec. 950.505 Sanctions compliance certification.
Each federation, federation member and independent 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). Should any change in circumstances pertaining to
this certification occur at any time, the organization must notify
OPM's Office of CFC immediately. OPM will take such steps as it deems
appropriate under the circumstances, including, but not limited to,
notifying OFAC and/or other enforcement authorities of such change,
suspending disbursement of CFC funds not yet disbursed, retracting (to
the extent practicable) CFC funds already disbursed, and suspending or
expelling the organization from the CFC.
Subpart F--CFC Timetable
Sec. 950.601 Campaign schedule.
(a) The Combined Federal Campaign will be conducted according to
the following timetable.
(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 Charity List.
[[Page 21595]]
(2) The Director will determine a date after the closing of the
receipt of applications by which the Director will issue notices to
each applicant organization of the results of the Director's review.
The date will be part of the annual timetable issued by the Director
under paragraph (b) of this section.
(3) The Director will determine the dates of the solicitation
period, not to begin prior to September 1 or end later than January 15
of each year.
(b) The Director will issue a timetable annually for accepting and
processing applications. The Director will issue the timetable for a
campaign no later than October 31 of the year preceding the campaign.
Subpart G--Payroll Withholding
Sec. 950.701 Payroll allotment.
The policies and procedures in this section are authorized for
payroll withholding operations in accordance with the Office of
Personnel Management Pay Administration regulations in part 550 of this
Title.
(a) Applicability. Voluntary payroll allotments will be authorized
by all Federal departments and agencies for payment of charitable
contributions to local CFC organizations.
(b) Allotters. The allotment privilege will be made available to
Federal personnel as follows:
(1) Employees whose net pay regularly is sufficient to cover the
allotment are eligible. An employee serving under an appointment
limited to 1 year or less may make an allotment to a CFC when an
appropriate official of the employing Federal agency determines that
the employee will continue employment for a period sufficient to
justify an allotment. This includes military reservists, National
Guard, and other part-time and intermittent employees who are regularly
employed.
(2) Members of the Uniformed Services are eligible, excluding those
on only short-term assignment (less than 3 months).
(c) Authorization. Allotments will be totally voluntary and will be
based upon contributor's individual authorization.
(1) The CFC Pledge Form, in conformance with Sec. 950.402, is the
only form for authorization of the CFC payroll allotment and may be
reproduced. The pledge forms and official Charity List will be made
available to employees electronically when charitable contributions are
solicited.
(2) The electronic pledge is transmitted to the contributor's
servicing payroll office in real time via the centralized pledge
system.
(d) Duration. Authorization of allotments will be in the form of a
term allotment. Term authorizations will be in effect for 1 full year--
26, 24, or 12 pay periods depending on the allotter's pay schedule--
starting with the first pay period after January 15 and ending with the
last pay period that includes January 15 of the following year. Three
months of employment is considered the minimum amount of time that is
reasonable for establishing an allotment.
(e) Amount. Allotters will make a single allotment that is
apportioned into equal amounts for deductions each pay period during
the year.
(1) The minimum amount of the allotment will not be less than $1
per payday per charitable organization, with no restriction on the size
of the increment above that minimum.
(2) No change of amount will be authorized for term allotments.
(3) No deduction will be made for any period in which the
allotter's net pay, after all legal and previously authorized
deductions, is insufficient to cover the CFC allotment. No adjustment
will be made in subsequent periods to make up for missed deductions.
(f) Discontinuance. Term allotments will be discontinued
automatically on expiration of the 1 year withholding period, or on the
death, retirement, or separation of the allotter from the Federal
service, whichever is earlier.
(1) An allotter may revoke a term authorization at any time by
requesting it in writing from the payroll office. Discontinuance will
be effective the first pay period beginning after receipt of the
written revocation in the payroll office.
(2) A discontinued allotment will not be reinstated.
(g) Transfer. When an allotter moves to another organizational
unit, whether in the same office or a different Department or agency,
his or her allotment authorization must be transferred to the new
payroll office.
Subpart H--Accounting and Distribution
Sec. 950.801 Accounting and distribution.
(a) Remittance. One electronic funds of the transfer (EFT) will be
transmitted by the payroll office each pay period, in the gross amount
of deductions on the basis of current authorizations, to the CCA.
(1) The EFT will be accompanied by an electronic transmittal
identifying the Federal agency, the dates of the pay period, the pay
period number, employee names and deduction amounts per individual
employee.
(b) Accounting. (1) OPM may require Federal payroll offices to
oversee the establishment of individual allotment accounts, the
deductions each pay period, and the reconciliation of employee accounts
in accordance with agency and Federal Accounting Standards and Office
of Management and Budget requirements. OPM may further require that
Federal payroll offices ensure the accuracy of remittances, as
supported by current allotment authorizations, and internal accounting
and auditing requirements.
(2) The CCA 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. The date will be part of the annual
timetable issued by the Director under Sec. 950.601(b). The CCA is
also responsible for distributing credit card, debit card, e-check,
check and money order receipts and payroll deductions transmitted by
the payroll offices. It is responsible for the accuracy of
disbursements it transmits to recipients. The CCA will distribute all
CFC receipts beginning April 1, and monthly thereafter. It shall remit
the contributions to each organization or to the federation, if any, of
which the organization is a member. At the close of each disbursement
period, the CFC account shall have a balance of zero, based on the last
reconciled bank statement.
(3) Federated organizations, or their designated agents, are
responsible for:
(i) The accuracy of distribution among the charitable organizations
of remittances from the CCA; and
(ii) Arrangements for an independent audit conducted by a certified
public accountant agreed upon by the participating charitable
organizations.
[FR Doc. 2014-08574 Filed 4-16-14; 8:45 am]
BILLING CODE 6325-58-P