AmeriCorps National Service Program, 39562-39607 [05-13038]
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CORPORATION FOR NATIONAL AND
COMMUNITY SERVICE
45 CFR Parts 2510, 2520, 2521, 2522,
2540 and 2550
J. Transitional Entities
K. State Commissions Directly Operating
Programs
VII. Effective Dates
VIII. Non-Regulatory Issues
IX. Rulemaking Analyses and Notices
RIN 3045–AA41
I. Background
AmeriCorps National Service Program
Under the National and Community
Service Act of 1990, as amended
(hereinafter ‘‘NCSA, or the Act,’’ 42
U.S.C. 12501 et seq.), the Corporation
makes grants to support community
service through the AmeriCorps
program. In addition, the Corporation,
through the National Service Trust,
provides education awards to, and
certain interest payments on behalf of,
AmeriCorps participants who
successfully complete a term of service
in an approved national service
position.
On February 27, 2004, President Bush
issued Executive Order (E.O.) 13331
aimed at making national and
community service programs better able
to engage Americans in volunteering,
more responsive to State and local
needs, more accountable and effective,
and more accessible to community
organizations, including faith-based
organizations. The E.O. directed the
Corporation to review and modify its
policies as necessary to accomplish
these goals.
In the Consolidated Appropriations
Act for 2004, Congress directed the
Corporation to reduce the Federal cost
per participant in the AmeriCorps
program and to increase the level of
matching funds and in-kind
contributions provided by the private
sector. The Conference Report
accompanying the 2004 Consolidated
Appropriations Act directed the
Corporation to engage in notice and
comment rulemaking around the issue
of ‘‘sustainability.’’
On September 23, 2003, the
Corporation’s Board of Directors (the
Board) had directed the Corporation to
‘‘undertake rulemaking to establish
regulations on significant issues, such as
sustainability and the limitation on the
Federal share of program costs,
consistent with any applicable
directives from Congress.’’ On August
12, 2004, the Corporation published a
Notice of Proposed Rulemaking (NPRM)
in the Federal Register for public
comment (69 FR 50124).
This rulemaking process is one of two
the Corporation initiated in 2004, and
addresses several significant and timesensitive issues. The Corporation
intends to implement these changes
over the next year, with some taking
effect in the AmeriCorps 2005 program
year, and the remainder in the 2006
ACTION:
Final rule.
SUMMARY: The Corporation for National
and Community Service (hereinafter the
‘‘Corporation’’) is amending several
provisions relating to the AmeriCorps
national service program, and adding
rules to clarify the Corporation’s
requirements for program sustainability,
performance measures and evaluation,
capacity-building activities by
AmeriCorps members, qualifications for
tutors, and other requirements.
DATES: This final rule is effective
September 6, 2005, with specific
sections becoming applicable according
to the implementation schedule in part
VII of the SUPPLEMENTARY INFORMATION
section.
FOR FURTHER INFORMATION CONTACT:
Amy Borgstrom, Associate Director for
Policy, Department of AmeriCorps,
Corporation for National and
Community Service, 1201 New York
Avenue, NW., Washington, DC 20525,
(202) 606–5000, ext. 132. T.D.D. (202)
606–3472. Persons with visual
impairments may request this rule in an
alternative format.
SUPPLEMENTARY INFORMATION:
List of Topics
I. Background
II. Preliminary Public Input and Public
Comments
III. Terminology Change: FTE to MSY
IV. Highlights of Proposed Rule
V. Broad Policy Issues
A. Sustainability Generally
B. Intermediaries
C. Education Award Program
D. Professional Corps
VI. Specifics of Final Rule and Analysis of
Comments
A. Definitions of ‘‘Target Community’’ and
‘‘Recognized Equivalent of a High-School
Diploma’’
B. Member Service Activities
C. Increase in Required Grantee Share of
Program Costs
D. Cap on Childcare Payments and
Corporation Share of Health Care
Benefits
E. AmeriCorps Grants Selection Process
and Criteria
F. Corporation Cost per Member Service
Year (MSY)
G. Performance Measures and Evaluation
H. Qualifications for Members Serving as
Tutors and Requirements for Tutoring
Programs
I. Non-Displacement of Volunteers
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program year (See section VII. Effective
Dates). The second process stemmed
from a recommendation by the Board’s
Taskforce on Grant-making and is
largely an effort to streamline and
improve our current grant-making
processes. That effort is already
underway, and we plan to issue a Notice
of Proposed Rulemaking for that
purpose later this year. The two
rulemakings address distinct and
separate issues.
II. Preliminary Public Input and Public
Comments
A. Preliminary Public Input
On March 4, 2004, the Corporation
published a notice in the Federal
Register inviting informal preliminary
public input in advance of rulemaking
(69 FR 10188). The notice outlined the
general topics the Corporation was
interested in addressing through
rulemaking and posed questions for the
public to consider in providing input.
Following the notice, the Corporation
held four conference calls and five
public meetings across the country in
Columbus, Ohio; Seattle, Washington;
Boston, Massachusetts; Washington, DC;
and Arlington, Texas, to frame the
issues and collect public input. Through
the hearings, conference calls, and email and paper submissions, the
Corporation received comments from
nearly 600 individuals and
organizations, and used this input to
inform the drafting of the proposed rule.
B. 60-Day Comment Period
In the Federal Register of August 12,
2004 (69 FR 50122), the Corporation
published the proposed rule with a 60day comment period. In addition to
accepting comments in writing, the
Corporation held three conference calls
and five public meetings across the
country in Philadelphia, Pennsylvania;
Atlanta, Georgia; Portland, Oregon;
Denver, Colorado; and Chicago, Illinois.
During the public comment period, the
Corporation received 217 written
comments and 78 oral comments from
grantees, foundations, State
governments, non-profits, Members of
Congress, and other interested
individuals and organizations.
The comments express a wide variety
of views on the merits of particular
sections of the proposed regulations, as
well as some broader policy statements
and issues. Acknowledging that there
are strong views on, and competing
legitimate public policy interests
relating to, the issues in this
rulemaking, the Corporation has
carefully considered all of the
comments on the proposed regulations.
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The Corporation has summarized
below the major comments received on
the proposed regulatory changes, and
has described the changes we made in
the final regulatory text in response to
the comments received. In addition to
the more substantive comments
discussed below, the Corporation
received some editorial suggestions,
some of which we have adopted and
some of which we have not. The
Corporation has made a number of other
minor editorial changes to better
organize or structure the regulatory text.
Finally, the Corporation received a
number of comments on issues outside
the scope of the proposed rule, which
the Corporation does not address in the
discussion that follows.
III. Terminology Change: FTE to MSY
In the proposed rule, the Corporation
defined cost per full-time equivalent
(FTE), and referred to cost per FTE
throughout the regulation. Until now,
the Corporation has used the term FTE
to describe the number of service years
performed by a full-time AmeriCorps
member (each service year being equal
to 1,700 hours of service). Because the
term FTE is most often associated with
budgeting for employee payroll, we are
replacing ‘‘FTE’’ with ‘‘Member Service
Year’’ (MSY). We think this term more
accurately describes units of
AmeriCorps service, and we want to
avoid any misimpression that
AmeriCorps members are Federal
employees. Consequently, the
Corporation has amended the final rule
to refer to cost per MSY, and uses MSY
and cost per MSY throughout this final
rule in lieu of FTE and cost per FTE,
respectively.
IV. Highlights of Final Rule
This final rule includes a targeted
series of reforms designed to strengthen
the impact, efficiency, and reach of
AmeriCorps, our AmeriCorps grantees,
and the Corporation. Our primary
objectives are to:
• Create a framework for long-term
growth and sustainability of the
AmeriCorps program as a public-private
partnership;
• Provide consistency, reliability, and
predictability for AmeriCorps grantees;
• Enhance the measurable positive
impact of the AmeriCorps program on:
—Communities and beneficiaries that
receive service;
—Non-profit organizations and
community infrastructures that host
service; and
—AmeriCorps members who serve;
• Resolve longstanding issues relating
to Federal share, Corporation cost per
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member service year (MSY), and
sustainability of AmeriCorps projects to
minimize uncertainty about annual
grantee funding levels and restrictions;
• Assure fiscal and programmatic
accountability and effective
performance measurement for the
Corporation, AmeriCorps, and grantees;
and
• Generate additional and wider
varieties of grant applicant
organizations. In addition, wherever
possible, this rule reflects the
Corporation’s determination to:
• Eliminate unnecessary paperwork
burdens on Corporation grantees;
• Strengthen AmeriCorps’ ability to
respond to State and local needs;
• Engage more community
volunteers;
• Include community organizations,
including faith-based organizations, in
all Corporation programs; and
• Invigorate the competitive grantmaking process.
Existing and potential AmeriCorps
grantees are a strong and diverse group
of talented and innovative forces for
change, with different needs,
circumstances, and abilities. Therefore,
the Corporation has endeavored,
throughout these regulations, to:
• Use competitive criteria to foster
and encourage, rather than require,
desired actions or activities; and
• Tailor implementation of the
regulatory requirements based on the
unique goals and circumstances of
grantees, including limited waivers if
appropriate.
The Corporation has focused reforms
in the final rule on four main areas:
Sustainability of AmeriCorps programs,
including decreasing grantee reliance on
Federal resources and decreasing
Corporation costs per MSY; Grant
selection criteria; Performance measures
and evaluation; and Tutor qualifications
and other requirements for tutoring
programs. The proposed rule also
included a discussion in some detail of
several non-regulatory issues including
the Corporation’s goal of streamlining
continuation applications and adjusting
grant cycles. As discussed in the
proposed rule, the Corporation is
undertaking both those reforms outside
of these regulations.
The Corporation is publishing these
regulations pursuant to the Chief
Executive Officer’s statutory authority to
‘‘prescribe such rules and regulations as
are necessary or appropriate to carry out
the national service laws.’’ 42 U.S.C.
12651c(c). The Corporation intends to
monitor the impact of this final rule on
grantees.
The next section of this preamble,
section V, addresses sustainability, and
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specific issues concerning
intermediaries, Education Award
Program grantees, and professional
corps programs. Section VI includes a
section-by-section summary and
analysis of the major comments we
received and the Corporation’s
response. Section VII of this preamble
addresses implementation of the final
rule. Section VIII addresses several nonregulatory policy issues the Corporation
considered in light of the public input
and comments we received.
V. Broad Policy Issues
A. Sustainability
Many of the comments the
Corporation received addressed the
issue of sustainability. Many suggested
that the Corporation had too narrowly
defined sustainability in the proposed
rule as only including financial or
monetary measures, and had given
insufficient consideration to other
measures of sustainability, such as
community support and partnerships,
and program quality. Those commenting
on the definition generally suggested
various revisions on the same theme of
defining sustainability broadly and
beyond just financial commitments.
Two commenters suggested that
sustainability be measured by criteria
that capture capacity in terms of
program quality and cost structure,
fiscal and community support,
partnerships, and leveraged resources,
including volunteer hours and in-kind
goods and services. The Corporation
agrees that sustainability includes many
elements beyond cost, and has modified
the rule language in several places to
bring greater emphasis on multiple and
diverse measures of sustainability.
The Corporation did not intend for
the proposed rule to define
sustainability solely in terms of money,
nor did we intend for sustainability
itself to be viewed as the only factor in
the grant selection process. The
Corporation’s intent was to broadly
define sustainability and to specify
measures of sustainability in the grant
selection criteria and program
requirements. At the same time, the
Corporation does believe that decreasing
the federal share of costs for
AmeriCorps programs is essential to
sustainability, and we have, thus,
retained increased matching
requirements as a key part of our effort
to boost program sustainability.
As stated in the proposed rule, the
Corporation’s annual appropriation and
its authorizing legislation, as well as
E.O. 13331, support this approach to
sustainability. In our annual
appropriations act each year dating back
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to fiscal year 1996, and most recently in
the Consolidated Appropriation Act for
fiscal year 2005, Congress directed the
Corporation to ‘‘increase significantly
the level of matching funds and in-kind
contribution provided by the private
sector,’’ and ‘‘reduce the total Federal
costs per participant in all programs.’’
Section 133(c)(3) of the Act requires the
Corporation to include in its selection
criteria the sustainability of the national
service program, based on evidence
such as the existence of strong and
broad-based community support for the
program, and of multiple funding
sources or private funding for the
program. Section 130(b)(3) of the Act
authorizes the Corporation to ask an
organization ‘‘re-competing’’ for funding
after a three-year initial grant period to
include a ‘‘description of the success of
the programs in reducing their reliance
on Federal funds.’’ In addition, E.O.
13331 directs that ‘‘national and
community service programs should
leverage Federal resources to maximize
support from the private sector and from
State and local governments.’’
While the Corporation is committed
to meeting these goals, in our view, they
do not require imposing across-theboard limitations on the number of
years an organization may receive
funds, particularly given the many
organizations providing valuable
infrastructure and experience that
enable national and community service
to continue to thrive across the country.
At the national level, the Corporation
continues to believe it unnecessary to
disqualify an organization from
receiving Federal funding based on the
number of years that organization has
received funding. To do so would
ultimately result in a loss of some of the
strongest organizations with the
capacity, infrastructure, and experience
to provide high-quality service and
deliver results that strengthen and
expand national and community
service. We do believe, however, that
the majority, if not all, of the
organizations that receive Corporation
funds can and should increase their
share of program costs as their programs
mature.
Through increased sustainability, the
Corporation seeks to expand the
national service field and provide new
organizations the opportunity to
participate in national and community
service programs. The Corporation also
seeks to strengthen the capacity of
existing national and community
service programs by promoting an
expansion and diversification of their
non-Corporation funding sources, and
strengthening the competitive
framework. At the same time, the
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Corporation wants to treat grantees
fairly and equitably and avoid impairing
their independence, operating
flexibility, and autonomy.
As described in more detail below,
the Corporation’s strategy to increase
organizational sustainability and
expand national and community service
has six main elements:
1. Incorporates the broad spectrum of
sustainability elements throughout the
Corporation’s grant selection criteria
and program requirements.
2. Increases the emphasis in the
selection process on program costeffectiveness, including using
Corporation cost per MSY as one of
several measures of cost-effectiveness.
3. Increases, based on a predictable
schedule and incremental scale, the
grantee share of program costs to a 50
percent overall level by the 10th year in
which an organization receives
AmeriCorps funding for the same
program. Programs in severely
economically distressed or rural areas
are eligible to apply for permission to
meet an alternative match schedule,
which would increase their grantee
share to a 35 percent overall level by the
10th year in which an organization
receives AmeriCorps funding for the
same program.
4. Requires State commissions to
develop and implement a sustainability
approach as part of their oversight
function.
5. Targets a percentage of noncontinuation AmeriCorps State and
national grant funds each year for new
applicants.
6. Provides technical support and
limited exceptions to organizations that
demonstrate hardship in meeting the
increasing match requirements.
With the exception of the fourth and
fifth elements, which are not included
in the regulatory language and which
we address immediately hereafter, the
individual section discussions that
follow in part VI address each of the
other elements of sustainability in more
detail.
State Commission Sustainability
Approaches (§ 2550.80(a)(3) in Proposed
Rule)
Part of the Corporation’s
sustainability strategy is to build upon
what some States are already
accomplishing in the sustainability
arena. The Corporation understands that
roughly 25 percent of the State
commissions already have written
sustainability policies or approaches
through which they promote
sustainability and encourage new
programs in their States. Some States,
for example, gradually and predictably
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reduce their subgrantees’ Corporation
cost per MSY over 12 years, to allow the
commission to invest resources in new
programs and encourage on-going
programs to develop efficiencies and
enhance community support. One State
commission requires, among other
things, that its subgrantees develop their
own sustainability plans and increase
the subgrantee share of program
operating costs over a seven-year period
to 75 percent. Some States, in addition
to requiring a small increase in program
share of member support costs over a
three-year period, actively solicit private
donations to use, in part, to help local
AmeriCorps programs develop
relationships with corporate donors and
increase private support. The
Corporation praises these efforts and
encourages State commissions to
consider these and other approaches to
promote program sustainability in their
States.
In an effort to promote these State
sustainability efforts, the proposed rule
required each State to describe its
sustainability approach in its State-wide
service plan.
Several commenters expressed
confusion regarding the proposed
requirement. One viewed this provision
as requiring States to duplicate the new
Federal sustainability and matching
regulatory requirements. One State
commission indicated that it may
develop additional sustainability
requirements for programs in its State,
but did not wish to report those
requirements to the Corporation.
Another commission supported the
development of local sustainability
plans for States, but sought clarifying
language that would leave room for
States to determine sustainability for
themselves.
The Corporation supports the efforts
that States are making towards
sustainability in their respective States.
Furthermore, the Corporation notes that
State commissions may generally
choose to impose more stringent
requirements on State subgrantees than
the Corporation’s requirements. The
Corporation’s intent in proposing the
reporting requirement was to ensure
that each State engage in meaningful
discussions about how it should manage
its portfolio to maximize long-term
impact of programs in the State. The
Corporation expects State commissions
to consider, in developing their
sustainability plans, whether they
should add any sustainability
requirements to the Corporation’s
minimum requirements, as well as what
strategies the State may use to develop
capacity and sustainability of projects
and service in the State.
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The Corporation has now concluded
that the State-wide service plan
(formerly ‘‘unified State plan’’) is not
necessarily the best mechanism for
obtaining this information. Rather, the
Corporation believes that the most
efficient way for commissions to report
on their sustainability plans is through
their administrative funds application.
The Corporation plans to add one or
more questions to the administrative
application through which States will
report their sustainability plan efforts.
The Corporation is, therefore, removing
from the final rule the requirement that
State commissions submit a
sustainability plan to the Corporation.
Paragraph (a)(3) of section 2550.80 in
the proposed rule has been deleted.
Funds Targeted for New Programs
The Corporation anticipates annually
targeting a percentage of AmeriCorps
funds for grants to new applicants. To
give us the ability to manage our
nationwide portfolio and ensure the
appropriate mix of programs, the
Corporation will determine the category
of applicants eligible to receive the
targeted funds annually and announce it
in the relevant funding announcement.
The target amount will vary, rather
than be a fixed amount that the
Corporation must use for new programs
each year. In some years, the
Corporation may receive enough highquality new program applications to
meet or even exceed the target, and in
other years, if the new program
applications are not of sufficient quality
to merit funding, the number of new
programs funded may be lower than the
amount targeted for that purpose. The
Corporation will, to the maximum
extent possible, announce the amount
targeted for new programs prior to the
submission deadline.
One commenter agreed with the
Corporation’s efforts to support new
programs, but expressed concern that
this support should not lead to
replacing high-quality existing programs
with new programs. This commenter
supported the Corporation setting aside
funding for new programs only under
limited circumstances, including: (1) A
year when ‘‘new’’ funding represents
the majority of the funding available for
new and recompeting programs; or (2) a
year when there is a substantial amount
of new funding made available through
an increase in appropriations for
AmeriCorps grants of 10 percent or
more. In addition, the commenter
supported grants awarded out of setaside funds based on the results of a
‘‘truly competitive’’ process.
The Corporation disagrees with this
commenter’s suggestions. The
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Corporation will determine the target
percentage annually based on the
availability of appropriations and the
projected number of recompeting
applications, and publish this
information, including posting it on the
Web site at www.nationalservice.gov, in
advance of the selection process. The
Corporation will not, however, tie itself
now to the specific parameters the
commenter suggests. The Corporation
will ensure that the process for selecting
new programs is competitive and results
in the selection of high-quality
proposals, as for all its AmeriCorps
grant competitions.
Several commenters did not support
targeting funds for new programs. Other
commenters noted that competition is
the best way to increase the number and
diversity of organizations funded over
time. The Corporation views targeting
funds for new programs as an important
incentive for new organizations to
consider applying for AmeriCorps
funds, when they otherwise might not.
The Corporation acknowledges that its
legislative requirements can appear
daunting to organizations unfamiliar
with AmeriCorps or new to national and
community service, particularly when
competing with existing organizations
that have had the opportunity to learn
from experience. The Corporation
therefore hopes that, by targeting funds
for new programs, more new
organizations will apply, thereby
increasing the likelihood that more new
programs will receive funding. The
Corporation will award all of its
AmeriCorps funds, including those
targeted for new programs, through
rigorous competition, to ensure that we
fund the best possible programs that
will demonstrate strong results and help
address our communities’ unmet needs.
One commenter asked whether the
Corporation would announce the
amount we would target for new
programs before the selection of
grantees or prior to the submission
deadline. While the Corporation will
generally announce the amount of funds
we will target for new programs before
the submission deadline, in some years,
we may not receive our appropriation
until close to the application deadline
or after applications are due. In that
case, the Corporation would announce
the amount targeted for new programs
as soon as possible after receiving our
annual appropriation.
Several commenters asked that the
Corporation specify the annual
percentage, or at the very least the
maximum annual percentage we will
target for new programs. The
Corporation cannot specify in this rule
how much—if any—we will target for
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new programs each year because the
target amount will depend each year on
the level of our annual appropriation, as
well as the number of continuation
programs and the level of their
respective grant requests.
One commenter asked whether States
would be required to set-aside a
percentage of their formula funds for
new programs. The Corporation will not
require States to set aside or target
formula funds for new programs,
although a State may choose to do so.
Another commenter suggested the
Corporation hold a competition to
determine the best quality programs
before targeting money for new
programs. The Corporation intends only
to fund high-quality programs and does
not believe it necessary to determine the
quality of applications through a
separate process. As discussed above,
the amount the Corporation annually
targets for new programs will not be a
fixed amount. If the Corporation has any
remaining funds from the amount
allocated for new high-quality programs
that year, the Corporation will make
these funds available to recompeting
and continuation grantees.
Other Sustainability Issues
Several commenters expressed
concern that the Corporation’s proposed
sustainability strategy may in fact
jeopardize programs in low-income and
economically-distressed regions of the
country. As discussed more fully in the
section dealing with increased grantee
share, the final rule accommodates
programs located in rural or severely
economically-distressed areas of the
country that are unable to meet the
higher match requirements by allowing
them to request a waiver that would
qualify them for an alternative lower
match requirement. The rule also
includes programs in rural and severely
economically-distressed areas in the list
of programs eligible for special
consideration in the competitive
selection process.
One commenter expressed concern
that fundraising costs are currently not
included in the budgets submitted to the
Corporation, obscuring the true cost of
doing business as an AmeriCorps
program. This commenter suggested
that, given the increased emphasis on
program fundraising and increased
match, the Corporation request an
exception from the Office of
Management and Budget to allow
development costs to count as match or
be reimbursed. It is government-wide
Federal policy that fundraising costs are
not reimbursable, and the Corporation
can find no basis upon which it may
deviate from that policy. Many other
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Federal grant programs require a 50
percent match without corresponding
OMB waivers relating to development
costs.
Another commenter suggested that
the Corporation apply different,
presumably less rigorous, sustainability
requirements and measures to ‘‘stand
alone’’ AmeriCorps programs—that is,
organizations whose sole purpose is to
carry out AmeriCorps. Again, the
Corporation does not find sufficient
merit to the suggestion to make a change
in the final rule. Sustainability is one of
the core principles of this rule. While
the final rule carves out some limited
exceptions to the sustainability
requirements, the characteristics of a
‘‘stand-alone’’ AmeriCorps program are
not sufficiently different from other
AmeriCorps programs to warrant
different treatment. Moreover, the
Corporation wants to avoid creating a
disincentive for an organization to
diversify its activities.
In several places in this final rule, the
Corporation makes a distinction
between compliance with a requirement
and performance under the competitive
selection criteria. For example, the final
rule requires programs to recruit or
support volunteers, unless the
Corporation waives the requirement. At
the same time, the selection criteria for
AmeriCorps grants include volunteer
recruitment and support as a
competitive criterion. A proposal that
does not include volunteer recruitment
or support will potentially score lower
in that category, regardless of whether,
ultimately, the Corporation waives the
volunteer recruitment or support
requirement when making an award.
Similarly, in the area of match, the
Corporation is establishing minimum
requirements for grantees that the
Corporation will enforce, generally
upon closing out a grant. If a grantee has
not met its minimum required match,
the grantee will have to repay funds to
the Corporation. The selection criteria,
on the other hand, look at match also
from a performance perspective: An
organization’s failure to meet its
budgeted match may negatively impact
its success in the competitive process,
but will not translate into a requirement
that the organization repay funds. When
considering the final rule, one should
bear in mind this distinction between
compliance and performance.
The Corporation believes that its
approach represents a fair, equitable,
and authoritative resolution of the issue
of programmatic, organizational, and
financial sustainability. The rules are
authorized by, and consistent with, our
enabling legislation, and support our
goals of supporting and strengthening
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high-quality programs while leveraging
Federal resources to achieve the greatest
benefit possible for our nation’s
communities. Predictability and
consistency are crucial elements of this
rulemaking. Thus, we seek to provide
clear guidance to our grantees on our
long-term expectations for
sustainability, which we believe
conclusively resolves the issue.
B. Intermediaries
The Corporation received significant
public comment regarding
intermediaries and, in particular, the
potential effect on those entities of
efforts to promote sustainability. There
is, and should continue to be, a
prominent place for intermediaries in
the national and community service
portfolio, particularly given their
important role in reaching smaller
community organizations, including
faith-based organizations. The
Corporation recognizes that many
intermediary models include a regular
infusion of new sites, which, as with
any new program, may have higher
costs initially. In designing the selection
criteria, the Corporation has explicitly
recognized the potentially higher cost of
some intermediary models.
One commenter suggested that the
Corporation define ‘‘intermediary’’ as a
program that ‘‘places members in
community-based and faith-based
organizations in specific communities.’’
This commenter indicated that these
intermediary model programs are more
expensive because they take on new
partnerships each year and must
manage multiple partnerships. The
higher relative cost of these
intermediary models should, according
to this commenter, be recognized in the
selection criteria for cost-effectiveness.
As discussed in the selection criteria
below, the cost-effectiveness criteria
specifically take into account, among
other things, the higher relative costs of
programs that either bring on new sites
or engage or serve difficult-to-reach
populations. As far as defining
‘‘intermediary,’’ the suggested definition
is, based on the Corporation’s
experience, too imprecise. The
Corporation has spent considerable
effort examining intermediaries and has
determined that its portfolio of grantees
includes many different models of
intermediary, such that including a costeffectiveness criterion for a multifaceted category of organizations would
not be appropriate or workable.
The Corporation has set matching
requirements generally at the grantee or
parent organization level, rather than at
the member placement or service site
level, and we have not adjusted the
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matching requirements based on the
proportion of new sites in any given
year. We believe that establishing the
matching requirements at the parent
organization level gives greater
flexibility to intermediaries to manage
and achieve a healthy mix of new and
established sites. As discussed more
fully below in section VI(C), the
Corporation is sensitive to the fact that
the increased match requirements may
create obstacles for some intermediary
organizations. In particular, the
Corporation is concerned about
intermediary organizations that place
members in small and new grass-roots
organizations in needy communities,
and rely on those communities to
contribute matching resources to the
intermediary in order to participate.
C. Education Award Programs (EAP)
The Education Award Program (EAP)
allocates education awards to national,
State and local community service
programs that can support most or all of
the costs associated with managing the
service of AmeriCorps members from
sources other than the Corporation.
Several commenters recommended that
the final rule clarify the extent to which
its provisions apply to Education Award
Programs (EAP). One commenter
recommended that EAP grantees be
exempted from all ‘‘irrelevant sections,’’
including those referring to match
generation, volunteer generation,
evaluation, and health care.
The final rule explicitly excludes
Education Award Program grantees from
its provisions where necessary, and as
described herein.
EAP—Sustainability and Cost
Effectiveness
Several commenters opined that the
discussion of sustainability and its
related implementation simply should
not apply to EAP grantees. These
commenters believe that EAP programs
are the epitome of sustainability,
because they already manage programs
with minimal financial assistance from
the Federal Government, other than the
education award that members receive
for completing a term of service. In
particular, these commenters opposed
using cost per MSY as a selection
criterion for Education Award Program
grantees, as these grantees receive fixed
amount grants of $400 per MSY
currently. Two commenters indicated
that EAP programs invest significant
amounts of non-Corporation resources
in their programs, and they are
concerned that the Corporation has not
recognized or rewarded that investment
in considering program sustainability.
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In the final rule’s selection criteria,
the Corporation has retained
Corporation cost per MSY as an
important factor to consider in
determining a program’s costeffectiveness for programs other than
Education Award Program grantees. For
Education Award Program grantees, the
Corporation has included explicit
language to make clear that Corporation
cost per MSY is not a factor in
considering their cost-effectiveness.
However, other measures of costeffectiveness will apply to Education
Award Program grants.
The Corporation agrees that the EAP
program is a clear example of a
sustainable program from a financial
perspective. The Corporation is aware of
the significant financial contribution
and investment that EAPs make in their
programs and the relatively small
amount of money they receive from the
Corporation. The question, in evaluating
EAP programs in the selection process,
is the extent to which they can
demonstrate sustainability in other
ways. For example, an EAP program
will fare better in the competitive
process if it can show that its program
is having a sustainable impact in the
community, or its members are
continuing to show, post-service, an
ethic of service.
One commenter asked whether the
current $400 cost per MSY for EAP
programs would be increased. Another
commenter indicated that the
Corporation’s reporting requirements
have become increasingly burdensome,
while the cost per MSY for Education
Award Programs has steadily declined.
Whether or not to increase the $400 cost
per MSY is outside the scope of this
regulation. The Corporation, as
indicated below, is committed to
streamlining its reporting requirements
while ensuring accountability and
sustainability, and will continue to
work towards that goal for all its
grantees.
EAP—Member Service Activities
Sections 2520.20 through 2520.55 of
the final rule address allowable member
service activities, and include a
requirement that some component of
each AmeriCorps program must involve
recruiting or supporting volunteers. As
discussed in part VI, encouraging more
Americans to engage in service and
volunteer activities is one of the pillars
of our sustainability goals. Like any
other AmeriCorps applicant, any EAP
grantee that believes recruiting or
supporting volunteers would
fundamentally alter its program model
may apply for a waiver of this
requirement.
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EAP—Evaluation
The proposed rule clearly indicated
that EAP grantees would not be required
to perform an independent evaluation of
their programs. The final rule, while not
requiring an independent evaluation,
will require EAP grantees to perform an
internal program evaluation, and submit
that evaluation with the appropriate
recompete application. This provision is
consistent with the requirements in the
NCSA.
programs, and therefore does not
necessarily see a need for separate
guidelines. If a program demonstrates,
in its funding application, that its
program design is incompatible with the
requirement to recruit or support
volunteers, the Corporation will
consider waiving the requirement that
programs recruit or support volunteers.
In addition, the Corporation has
already taken the extra step of soliciting
proposals for Professional Corps
programs in a separate NOFA, and
envisions doing so again in the future.
The Corporation believes, however, that
professional corps programs,
particularly those for which the cost is
largely borne by sponsoring
organizations, will continue to compete
well in all our AmeriCorps grant
competitions. By grouping similar
program models together in our
selection process, the Corporation will
ensure, to the maximum extent possible,
that professional corps programs are
evaluated together. The Corporation
believes that all of these steps obviate
the need for a separate set of application
guidelines for professional corps
programs.
Several commenters asked whether
the Corporation intends for all teaching
fellows programs to apply under a
professional corps NOFA, rather than as
Education Awards programs.
Professional corps may apply under
other applicable NOFAs, such as
AmeriCorps State, National, or EAP, in
addition to any applicable Professional
Corps only NOFA.
D. Professional Corps
Professional Corps programs place
members as teachers, nurses and other
health care providers, police officers,
early childhood development staff,
engineers, or other professionals
providing service to meet unmet needs
in communities with an inadequate
number of such professionals.
Professional Corps programs pay 100
percent of the member support costs,
but receive operating funds and an
allocation of education awards for their
members. Several commenters reiterated
their desire that the Corporation
establish separate application guidelines
for professional corps programs to
reflect the fact that they are responsible
for 100 percent of the benefits paid to
AmeriCorps members, and that their
program model may be inconsistent
with some of the general program
requirements, such as volunteer
recruitment and required training. The
Corporation believes, however, that
most program requirements can and
should apply to all AmeriCorps
programs, including Professional Corps
VI. Specifics of the Final Rule and
Analysis of Comments
As discussed in more detail below,
the final rule:
• Defines the term ‘‘target
community’’ as the geographic
community in which an AmeriCorps
grant applicant intends to address an
identified unmet need.
• Defines the term ‘‘recognized
equivalent of a high-school diploma’’ as
including documents recognized for this
purpose by the U.S. Department of
Education.
• Clarifies the types of service
activities in which AmeriCorps
members may engage and explains the
parameters for grantees and members to
engage in capacity-building service
activities, including volunteer
recruitment and support.
• Increases, in an incremental and
predictable fashion, the grantee’s
required share of program costs to a 50
percent overall match plateau over 10
years; provides alternative matching
requirements for programs located in
rural and severely economically
EAP—Non-Displacement of Volunteers
The proposed rule stated that the
service of an AmeriCorps member must
complement, and may not displace, the
service of other volunteers in the
community, including partial
displacement such as reducing a
volunteer’s hours. As discussed below
in the section addressing the nondisplacement of volunteers provision
(§ 2540.100), the Corporation has
amended that section to remove these
particular references to volunteer hours,
in favor of a broader focus on addressing
unmet needs. The Corporation will
enforce this rule for all AmeriCorps
programs, including EAP programs.
EAP—Performance Measures
The Corporation expects all its
grantees, including EAP grantees, to
adhere to performance reporting
requirements. Performance measures are
critical to demonstrating that national
and community service programs are
having their intended impact in our
communities.
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distressed communities, increasing the
grantee’s required share of program
costs to a 35 percent overall match
plateau over 10 years.
• Codifies that the amount of
childcare payments the Corporation
makes to an eligible provider on behalf
of an AmeriCorps member may not
exceed the amount authorized under the
Child Care and Development Block
Grant Act of 1990 (Pub. L. 101–508).
• Codifies the grant selection process
and criteria.
• Clarifies how grantees are to
calculate their budgeted Corporation
cost per member service year (MSY).
• Codifies the Corporation’s
requirements for grantees to establish
performance measures and to evaluate
program outcomes, and establishes a
grant amount threshold for required
independent evaluations.
• Establishes qualifications for
members serving as tutors and
requirements for tutoring programs.
• Prohibits displacement of
volunteers.
• Removes obsolete references to
‘‘transitional entities’’ serving as State
commissions on national and
community service.
• Broadens State commission
flexibility to operate specified national
service programs directly.
A. Definition of ‘‘Target Community’’
and ‘‘Recognized Equivalent of a HighSchool Diploma’’ (§ 2510.20)
Target Community
In the proposed rule, the Corporation
defined the term ‘‘target community’’ as
the geographic community for which an
AmeriCorps grant applicant identifies
an unmet human need. The Corporation
assumed that educational,
environmental, and public safety needs
were all subsumed within the term
‘‘human need.’’
Two commenters interpreted this
language as excluding educational,
environmental, and public safety needs
from the definition. In order to clarify
our intent, the Corporation has amended
the language to specifically include
educational, environmental, and public
safety needs (including disaster
preparedness and response), in addition
to other human needs. The Corporation
has also made technical changes to the
definition to make it clearer.
Recognized Equivalent of a High-School
Diploma
In reading the comments on the
proposed tutor requirements, the
Corporation concluded that grantees
were not clear that the term ‘‘highschool diploma or its equivalent’’ means
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more than simply a high-school diploma
or a GED. For the sake of clarity, the
Corporation is including a technical
amendment to § 2510.20 to clearly
define what is a recognized equivalent
to a high-school diploma. The definition
incorporates the Department of
Education’s definition of the equivalent
to a high-school diploma. Under the
Department of Education’s regulations
(34 CFR § 600.2), the equivalent to a
high-school diploma includes not only
a GED, but also (1) a State certificate
received by a student after the student
has passed a State-authorized
examination that the State recognizes as
the equivalent to a high-school diploma;
(2) an academic transcript of a student
who has successfully completed at least
a two-year program that is acceptable for
full credit towards a bachelor’s degree;
or (3) for a person seeking to enroll (or
enrolled) in an educational program that
leads to at least an associate degree or
its equivalent and who has not
completed high school but who excelled
academically in high school,
documentation that the student excelled
academically in high school and has
met the formalized, written policies of
the institution for admitting such
students.
B. Member Service Activities on Behalf
of the Organization (§§ 2520.20 Through
2520.60)
Except for those member activities
specifically prohibited in sections 132
and 174 of the Act, as amended, the
Corporation has broad authority to
determine appropriate service activities
for AmeriCorps members. In the
proposed regulation, the Corporation
largely codified and clarified the
Corporation’s current guidelines and
grant provisions on this issue.
Specifically, the proposed rule clarified
that AmeriCorps members may: (1)
Perform direct service activities, and (2)
engage in other activities that build the
organizational and financial capacity of
nonprofit organizations and
communities, including volunteer
recruitment and certain fundraising
activities.
Several commenters supported
allowing AmeriCorps members to be
involved in capacity-building, including
fundraising activities. Others expressed
concern that AmeriCorps may be
diluting its mission by allowing
members to engage in capacity building
activities, rather than direct service
exclusively. One commenter opposed
members engaging in anything other
than direct service, on the basis that
partner organizations are providing
matching resources for direct services
provided onsite, such as tutoring during
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the school day. Another commenter
expressed the hope that this policy of
allowing member capacity-building
activities remain an opportunity for
programs, but not become a mandate.
The principal purpose of AmeriCorps
is still direct service and ‘‘getting things
done’’ in our communities and our
country. With the exception of the
requirement that programs recruit or
support volunteers, the final rule does
not require that programs allow
members to engage in any other
capacity-building activities. The final
rule merely permits members to engage
in such activities, at the discretion of
the program. That said, the Corporation
believes that AmeriCorps members and
AmeriCorps funds have the ability to
leverage resources and increase the
capacity of the organizations with, and
the communities in which, they serve.
The Corporation sees no compelling
reason to limit members only to direct
service, as valuable as that is, when they
could also be recruiting or supporting
volunteers, helping to raise funds for
their projects, and helping to build
sustainable service in their
communities. Because these activities
promote sustainability, which is one of
the primary reasons for this rulemaking,
the final rule remains unchanged from
the proposed rule in terms of permitting
members to engage in both direct
service and capacity-building activities.
One commenter recommended adding
K–12 education as a fifth example under
‘‘developing collaborative relationships
with other organizations working to
achieve similar goals in the community’’
in § 2520.30(b)(4). The Corporation
agrees that including K–12 education in
that section is appropriate, but believes
that the broader category of ‘‘local
education agencies or organizations’’ is
the most appropriate descriptor.
Consequently, the Corporation has
added ‘‘local education agencies or
organizations’’ as a fifth example in
§ 2520.30(b)(4).
AmeriCorps Members Serving With
Faith-Based Organizations
The Corporation received comments
from several organizations about
AmeriCorps members serving with
faith-based organizations. Of the
comments relating to matters in the
proposed rule, one recommended that
the Corporation clarify the final rule to
ensure that activities on behalf of
participating organizations meet
statutory and constitutional safeguards
regarding religious activity. Specifically,
this commenter recommended that
§§ 2520.20 through 2520.65 be amended
to acknowledge the statutory restrictions
on member activities. Another
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commenter recommended that the
Corporation develop and provide clear
guidance for AmeriCorps programs
working with faith-based organizations.
The redesignated section 2520.65
(formerly § 2520.30) of the regulations
addresses AmeriCorps members’
prohibited activities, including those
relating to religious activities. The
Corporation believes that these
prohibitions are sufficiently clear, and
further that it would be outside the
scope of this rulemaking process to
amend them at this time.
One commenter suggested that the
regulations require faith-based
organizations that receive AmeriCorps
funds to establish a separate corporate
structure to receive and segregate
government funds and the capacitybuilding activities thereby supported.
The Corporation disagrees with this
suggestion. While an organization is free
to establish a separate account for its
Corporation funds, it would be unfair to
require faith-based organizations to
comply with these additional burdens.
Except for the Education Award
Program, which offers a modest fixed
amount grant, the Corporation requires
all its grantees to track their Corporation
funds separately and to ensure that they
use their Corporation funds only for
reasonable and necessary expenses and
permissible program activities.
Volunteer Recruitment or Support
(§ 2520.35)
One focus of Executive Order 13331 is
leveraging Federal resources ‘‘to enable
the recruitment and effective
management of a larger number of
volunteers than is currently possible.’’
The proposed regulations clearly
directed that some component of an
AmeriCorps grant must help build the
long-term capacity of nonprofit
organizations and the community by
recruiting and supporting volunteers.
While this has implicitly been a
requirement over the past two years,
clarifying and reinforcing this
requirement in regulation is expected to
encourage more Americans to engage in
service and volunteer activities, and
advance program goals.
One commenter stated that its new
homeland security program was
successful because AmeriCorps became
a tool for partnering with local
American Red Cross chapters to
maximize the effectiveness of
community volunteers by offering them
a structured, supervised and
coordinated volunteer experience.
On the other hand, several other
commenters expressed reservations
about the proposed requirement that
programs recruit or support volunteers.
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One commenter stated that it would
‘‘not be an effective use of resources to
pull AmeriCorps into volunteer
recruitment,’’ and that the regulation
should be broadened to allow
AmeriCorps members to support
existing volunteer efforts, rather than
requiring every program to generate and
recruit volunteers. The language in
§ 2520.35 of the proposed rule
specifically gives programs the option of
recruiting or supporting volunteers—it
does not require all programs to recruit
volunteers. Some programs, for
example, may not be able to recruit
volunteers, but may be able to support
volunteers recruited by other
organizations. The Corporation,
therefore, has not changed the language
in this section of the final rule.
Several commenters stated that the
recruitment, supervision, and training of
volunteers requires higher levels of
training and management skills than
members generally have, and detracts
from direct service and service
outcomes. One of these commenters
suggested that the Corporation
encourage volunteer recruitment, rather
than require it. Another commenter
stated that the Corporation should not
stress sheer numbers of volunteers to
the detriment of quality service and
effectiveness. In particular, this
commenter suggested that the
Corporation should guard against taxing
the volunteer base beyond its capacity,
bearing in mind that all its streams of
service, including AmeriCorps State and
National, AmeriCorps VISTA, Learn and
Serve, as well as Citizen Corps,
America’s Promise, and the Points of
Light Foundation, are recruiting from
the same pool of potential volunteers.
As stated in the proposed rule, the
Corporation does not intend for this
requirement to distract from an
organization’s mission, nor do we
expect grantees to replace direct service
with volunteer generation and other
capacity-building activities. In most
cases, direct service and volunteer
recruitment or support can complement
each other to strengthen programs and
communities. When considering how an
AmeriCorps program can promote the
effective involvement of volunteers,
applicants have the flexibility to
determine the best way to enhance or
build upon the direct service goals of
the program in which the AmeriCorps
members are serving and to propose
capacity-building activities accordingly.
The Corporation strongly believes that
most, if not all, programs can support
the goal of increasing and supporting
volunteering in this country.
As discussed in the proposed rule,
however, the Corporation recognizes
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that some program models, such as
certain professional corps, youth corps,
and programs in some rural locations
with a limited volunteer pool, may not
be able to include significant volunteer
recruitment or support in their program
model, and the Corporation will take
these and other factors into account in
considering requests to waive the
requirement that programs recruit or
support volunteers.
The Corporation is maintaining the
requirement that programs recruit or
support volunteers as currently drafted.
We believe that requiring programs to
recruit or support volunteers is central
to the Corporation’s mission of
leveraging resources.
One commenter was concerned that
many of the member activities permitted
by the proposed rule are currently
activities performed either by volunteers
or employees. This commenter,
therefore, read the proposed rule as
encouraging displacement of volunteers
and employees. In fact, the Corporation
prohibits displacement of volunteers
and employees. The Corporation only
funds programs whose activities add
value beyond what would occur in the
absence of our funding. Any program
that simply replaces volunteers or staff
with AmeriCorps members performing
the same activities will, by definition,
be unable to demonstrate that its
program adds value and meets unmet
needs in the community.
One commenter saw a disparity
between full-time programs and parttime programs in terms of their ability
to recruit and support volunteers, and
the potential for the Corporation to favor
full-time programs. This commenter’s
view was that a full-time program has
more resources upon which to draw
when recruiting volunteers and thus an
advantage in the grant selection process.
The Corporation does not favor full-time
over part-time programs, or vice versa.
The Corporation seeks to achieve the
best use of its resources in light of
priorities and funding constraints. In
applying its selection criteria, the
Corporation has sought to take into
account similarities and differences
between programs, including part-time
and full-time programs. A program of
members serving less than full-time
would have the opportunity to articulate
in its application the challenges it faces
in meeting any particular requirement
or selection criterion, including the
volunteer support requirement.
Several commenters asked whether a
program in which AmeriCorps teaching
fellows guide K–12 students in a
service-learning project could count
those students as volunteers for
purposes of the volunteer support
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component. These commenters said that
most Teaching Fellows Programs have a
service-learning requirement and that,
given the increasing use of servicelearning in K–12 schools as a way to
connect academic learning to service, it
would be helpful to see this reflected in
the new rule. One commenter
recommended that the section be
renamed ‘‘Volunteer Recruitment or
Service Learning’’ to ensure that
AmeriCorps won’t be criticized for
counting mandatory K–12 class
activities as ‘‘volunteer’’ work.
The Corporation intends to interpret
the requirement that programs recruit or
support volunteers broadly so as to
allow a program to count as volunteers
any volunteer activity generated,
supported, or coordinated by its
AmeriCorps members for purposes of
requirement. A program could therefore
expect to count as volunteers students
engaged in service-learning projects
under the supervision of AmeriCorps
members. The Corporation does not
believe it is necessary to rename the
regulatory section to specifically
include service-learning, as we will
broadly interpret the term ‘‘volunteers,’’
as used in this section.
Waiver of Requirement To Recruit or
Support Volunteers
Several commenters requested that
the Corporation clearly define the
method and timing for requesting a
waiver from the requirement to recruit
or support volunteers, and implement it
as part of a pre-application process.
Three commenters added that the rule
should clearly state that applying for a
waiver will not negatively affect a
proposal’s success in the grant selection
process.
The Corporation views volunteer
recruitment and support as both a
requirement and a competitive criterion
in the grant selection process. The
Corporation expects that a program that
believes it is unable to fulfill the
requirement to support or recruit
volunteers will address that inability in
its application and thereby request a
waiver from the requirement. While a
waiver request itself will not
disadvantage an applicant, failure to
address volunteer recruitment or
support at all will be a disadvantage in
the grant selection process. That said,
the extent to which a program recruits
or supports volunteers is but one
criterion in the grant selection process—
the Corporation does not expect that
every applicant will be able to meet or
demonstrate it can fulfill every criterion.
In order to succeed in a competitive
grant making process, a program unable
to include volunteer recruitment or
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support will simply have to deliver
more with respect to other selection
criteria.
If the Corporation is ready to negotiate
an applicant’s award, and the applicant
has requested a waiver, the Corporation
will then decide whether to relieve the
particular program of the requirement to
support or recruit volunteers. The
Corporation needs the flexibility, in
building our portfolio, to balance the
types of programs we will fund.
Providing a pre-application waiver,
which would essentially entail
reviewing an applicant’s entire
application outside of the competitive
process to assess the program design,
would undermine our ability to achieve
that balance. Furthermore, it would not
be the best use of our resources to
consider waiver requests for
applications that we have not yet
determined to be of sufficient quality to
receive funding.
The Corporation reiterates, however,
that a State commission can require its
subgrantees to include volunteer
recruitment and support, without regard
to whether the Corporation might be
willing to waive the requirement.
Applicants applying for funding
through a State commission will be
required to request a waiver from the
requirement to support or recruit
volunteers through the State
commission. We expect a commission to
forward requests for waivers only from
those applicants for whom the
commission has approved the initial
request. The Corporation will leave to
State commissions the determination of
whether a formula applicant effectively
makes the case for a waiver from the
requirement to support or recruit
volunteers, but expects State
commissions to make these decisions
judiciously. The Corporation will
include waiver application instructions
in the grant application instructions.
Fundraising (§ 2520.40)
The proposed regulation also clarified
that AmeriCorps members may help
organizations raise resources directly in
support of service activities that meet
local environmental, educational, public
safety, homeland security, or other
human needs. The proposed rule
allowed members to participate in a
wide range of fundraising activities if
these activities make up only a
relatively small amount of any
individual member’s overall service
hours. It also allowed members to write
grant applications excepting those for
AmeriCorps or any other Federal
funding. The Corporation believes that
these activities could enhance the use of
AmeriCorps members to build the
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capacity of nonprofit organizations, and
advance the professional development
of the members themselves.
The proposed rule’s provisions
governing fundraising were more
flexible for AmeriCorps members than
those for grantee staff, who are subject
to Federal cost principles described in
the Office of Management and Budget
Circulars that generally disallow costs
incurred in organized fundraising.
Several commenters were supportive
of AmeriCorps members being allowed
to engage in fundraising, but had areas
of concern. In particular, several
commenters felt it was as important for
program staff to be allowed to engage in
fundraising on AmeriCorps time.
Specifically, some commenters opined
that if members may engage in
fundraising, staff must be able to do so
in order to coach, train, and supervise
the members, and that absence of this
ability for staff may fail to produce
positive results.
The OMB circulars set the parameters
for allowable expenses and specifically
identify the cost of development officers
and fundraising staff as unallowable
expenses. It would be inconsistent with
government-wide rules for the
Corporation to allow otherwise. Thus,
the final rule is the same as the
proposed rule with respect to the
restrictions on staff fundraising.
One commenter stated that the
language in § 2520.40(a) and (c)(1)
implies that members may raise
resources for program operating
expenses, including staff salaries, travel,
supplies, and, equipment. At most nonprofit agencies, according to this
commenter, this type of fundraising is
the responsibility of paid staff. The
Corporation’s intent is merely to give
grantees flexibility to allow members to
engage in fundraising for reasonable and
necessary costs attributable to the
AmeriCorps project, which may, in
certain circumstances include the type
of expenses this commenter has listed.
The Corporation is, in no way, requiring
that members engage in fundraising. If
programs do use members for
fundraising, the programs will
nonetheless have to ensure they can
continue to meet performance
expectations and show results.
One commenter suggested that the
rule specifically allow members to
engage more broadly in organized
fundraising, ‘‘including financial
campaigns, endowment drives,
solicitation of gifts and bequests’’ and
similar activities performed ‘‘solely to
raise capital or obtain contributions.’’
The Corporation’s intention was to limit
member fundraising to support for the
program or project with which they are
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serving, and its approved program
objectives. Member fundraising was not
intended to support on-going broad
organizational fundraising objectives.
The final rule does not incorporate the
suggested change.
Two commenters questioned the
efficiency and cost effectiveness of
having members help with fundraising.
One stated that fundraising is a skill that
requires contacts and grant writing
abilities that develop over several years.
The other commenter felt that many
organizations use professional
fundraisers and that the obstacle to
raising resources is not lack of volunteer
fundraisers, but rather the economy.
The Corporation takes no position on
whether or not having members engage
in fundraising is efficient. Some
organizations with limited resources
may find it useful to use AmeriCorps
members for some limited fundraising.
Other organizations may not.
Ultimately, it is up to the individual
program to decide whether, and to what
extent, to allow members to engage in
fundraising activities. If a program does
intend for its members to engage in
fundraising, the program should inform
prospective members that fundraising
will be one of their activities. The
Corporation’s goal is simply to increase
the flexibility of the rules in this area to
enable programs to achieve results.
One commenter asked that the
Corporation clarify that including
member fundraising in a program design
will not advantage that program in the
AmeriCorps grant selection process. The
Corporation will not consider member
fundraising as a competitive factor in
selecting applicants, and an applicant’s
decision to have or not have members
fundraise will not have a bearing on the
selection process. While the Corporation
will not judge whether a program
chooses to have members engage in
fundraising activities, we may assess,
either during review or as part of our
monitoring and oversight function,
whether the fundraising activities are
reasonably connected to the program’s
ability to carry out its objectives and
meet its performance measures.
Limitation on Time Spent Fundraising
(§ 2520.45)
In the proposed rule, the Corporation
limited the time any individual member
may spend fundraising to not more than
10 percent of that member’s term of
service. Several commenters requested
that the Corporation define
recordkeeping requirements for tracking
member fundraising and ensure that
they are not overly burdensome to
programs. The Corporation will require
programs to identify fundraising on
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16:52 Jul 07, 2005
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member time-sheets, just as they
currently identify hours that members
spend training. Again, member
fundraising is an option, not a
requirement. If a program chooses to
have members engage in fundraising,
the program must track and report on
the number of hours members spend on
fundraising activities.
Several commenters believed that the
10 percent cap on hours spent
fundraising should be counted in the
aggregate across the program, as it has
been for training and education
activities, rather than member-bymember. Another commenter proposed
that members be allowed to exceed 10
percent of their time on fundraising
when fundraising activities are geared
toward efforts to build organizational
capacity and expand services. The
Corporation’s goal in establishing a
member-by-member limit is to ensure
that any one member does not spend a
disproportionate number of hours on
fundraising activities. Consequently, the
Corporation has left the 10 percent limit
on a per-member basis. In addition, the
Corporation considers 10 percent, or the
equivalent of 170 hours for the average
full-time member, as sufficient to allow
for a meaningful member contribution
in this area. The Corporation, therefore,
has not increased the maximum
allowable percentage in the final rule.
Clerical and Administrative Activities
(§ 2520.65 in Proposed Rule)
Prior to issuing the proposed rule, the
general rule prohibited AmeriCorps
members from engaging in clerical
activities as part of their service, except
if incidental to direct service, or if the
Corporation authorized otherwise in
connection with homeland security or
other activities. The general expectation
and practice among AmeriCorps
grantees was that members did not
perform clerical activities, except as an
incidental part of their direct service. In
the proposed rule, the Corporation
increased grantees’ ability to allow
members to perform clerical activities,
up to a 10 percent cap of each member’s
term of service.
Many commenters opposed allowing
members to perform any administrative
duties. One commenter was concerned
that this provision would create an
incentive to take members away from
direct service activities. Two other
commenters were concerned about
members supplanting the duties
formerly performed by employees.
Another commenter was concerned
about the administrative burden of
keeping records to document
compliance with this limitation.
Another was concerned that one of the
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reasons that individuals join
AmeriCorps is because they believe they
will be doing real service work and
making a difference, and not to do
clerical work as part of their regularly
expected or scheduled activities.
The Corporation agrees that the
proposed rule did not sufficiently
consider the potential for these and
other unintended consequences. The
Corporation is, therefore, removing from
the final rule § 2520.65 that would allow
10 percent of a member’s term of service
to be spent on administrative activities,
and thereby returning to the current
policy. The common expectation among
program directors and AmeriCorps
members should be that members may
not engage in unreasonable amounts of
clerical activities, except in exceptional
circumstances as approved by the
Corporation. The Corporation believes
that the best way to resolve issues
relating to members engaging in more
significant clerical activities is for
Corporation staff to address them on a
case-by-case basis directly with grantees
as a program quality issue. In limited
circumstances, the Corporation may
approve a member performing more
extensive clerical duties in connection
with disaster relief, or other compelling
community needs. For example, we
might approve a member engaging in
some limited amount of clerical
activities to lend support to an
organization whose regular staff has
been called up in the armed forces. On
the other hand, it would be
inappropriate for an individual to be
performing clerical work for extended
periods as a part of his or her daily
responsibilities in a program not faced
with a compelling need as described
above.
Fee-for-Service Activities (§ 2520.55)
The proposed rule authorized
programs, where appropriate, to collect
fees for services provided by
AmeriCorps members. One commenter
was concerned that allowing fee-forservice in AmeriCorps programs could
result in programs competing with other
nonprofits and for-profits. The
Corporation, consistent with
government-wide OMB circulars, has
always allowed fee-for-service activities
under limited circumstances. For
example, an AmeriCorps program that
provides inoculations might reasonably
charge a nominal fee for providing flu
shots, in order to defray costs of the
medication. The Corporation does not
anticipate that programs will charge the
public for every service they provide. In
addition, the Corporation’s goal is to
fund programs meeting unmet needs.
We, therefore, do not anticipate
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programs will be providing a service
that already exists elsewhere in the
program’s community. For sake of
clarity, the Corporation has modified
the language in § 2520.55 to state that
organizations may choose to collect fees
for service under certain circumstances,
rather than encouraging them to do so.
The final rule maintains the language
from the proposed rule that fees-forservice must be considered program
income and used to finance the
program’s non-Corporation share of
costs.
‘‘80/20 Rule’’ and Education and
Training Activities (§ 2520.50)
In the proposed rule, the Corporation
codified its longstanding so-called ‘‘80/
20’’ rule, which limits a program’s
aggregate number of hours for education
and training activities to not more than
20 percent of its members’ total service
hours. Two commenters opposed the 20
percent limit for training and
educational activities, particularly for
programs engaged in tutoring. One of
these commenters asked that the limit
be raised to 25 percent; the other asked
that it be raised to 30 percent. The
Corporation continues to believe that 20
percent is an appropriate limit on
training and education activities to
ensure that programs are able to meet
their programmatic objectives, and the
final rule remains unchanged in that
regard. However, the Corporation is
establishing the base for the aggregate
20% limitation as the number of hours
members agree to perform in their term
of service, as reflected upon their
enrollment in the National Service
Trust. This clarification will alleviate
the audit problem programs face when
members are released from the program
before completing the agreed-upon term
of service, and the program has
provided a large part of its training
agenda at the beginning if the program
year.
C. Increase in Required Grantee Share of
Program Costs (§§ 2521.35 Through
2521.90)
Sections 121 and 140 of the Act
require an AmeriCorps grantee to
provide not less than 25 percent of
operating costs and 15 percent of
member support costs. The Corporation
has the discretion under the statute to
increase the minimum grantee share of
costs, and did so in 1996, when we
increased the grantee share of operating
costs from 25 percent to 33 percent.
Section 130 of the Act explicitly
authorizes the Corporation to ask an
organization applying for renewal of
assistance (or ‘‘recompete’’ funding)
after an initial three-year grant period to
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16:52 Jul 07, 2005
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describe how it has decreased its
reliance on Federal funding. In addition,
in our annual appropriations act each
year dating back to fiscal year 1996,
including most recently the
Consolidated Appropriations Act for
fiscal year 2005, Congress has directed
the Corporation to ‘‘increase
significantly the level of matching funds
and in-kind contribution provided by
the private sector,’’ and to ‘‘reduce the
total Federal costs per participant in all
programs.’’ Finally, E.O. 13331 directs
that ‘‘national and community service
programs should leverage Federal
resources to maximize support from the
private sector and from State and local
governments.’’
Consequently, the proposed rule
increased, in a predictable and
incremental fashion, the grantee share of
program costs to a 50 percent aggregate
(overall) level by the 10th year in which
an organization receives AmeriCorps
funding. Under the proposed rule, each
grantee was required to meet the current
minimum requirements of 33 percent
match (cash or in-kind) for operating
costs and at least 15 percent match
(non-Federal cash only, except for
health care benefits) for member support
costs. After meeting those minimum
requirements, the grantee could meet
the balance of its aggregate share of
costs through any combination of
operating or member support matching
resources.
To avoid confusion about the terms
‘‘aggregate share’’ and ‘‘aggregate
match’’ as used in the proposed rule, the
Corporation has changed the
terminology in the final rule to refer to
an ‘‘overall match’’ or ‘‘overall share.’’
The overall match or share is the total
of the program operating costs match
and the member support match that the
program must provide starting in the
fourth year the program receives a grant.
For example, consider an AmeriCorps
grant with a total budget of $400,000—
$200,000 for member support that
includes such items as the living
allowance, FICA, worker’s
compensation, unemployment
insurance, and health care costs, and
$200,000 for program operating costs
that includes staff, operating, and
administrative costs. Current matching
requirements would call for this grantee
to provide at least 15 percent of member
support costs ($30,000) and 33 percent
of operating costs ($66,000). In this
example, the minimum overall grantee
share is $96,000, or about 25 percent. By
year 10 with the same total budget, the
program must provide $200,000 overall
towards the $400,000 budget.
In the proposed rule, the new
matching requirements began in the
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fourth year and increased in each year
thereafter in which an organization
received a program grant up to a 50%
overall match by the tenth year an
organization continued to receive
funding for the project.
The proposed rule established that a
current grantee or subgrantee that had
received an AmeriCorps grant for one or
more 3-year grant cycles at the time the
regulation takes effect would begin
meeting the match requirements at the
year three level. So, for example, an
organization that is in its fourth year of
AmeriCorps funding when the
regulation takes effect would remain
under the existing requirement in the
first year the new rule is in effect. In the
second year the new rule is in effect, the
grantee would be considered in year 4
on the new matching scale and its
overall share would begin to increase in
regular increments.
The proposed rule signaled the
Corporation’s intent to provide training
and technical assistance to grantees to
assist them in achieving their matching
goals. We also committed to consulting
with grantees to determine the most
useful and appropriate training and
technical assistance.
In the proposed rule, we indicated
that we believe it is reasonable to expect
most grantees to achieve the increased
level of matching, and stated our
expectation that State commissions
continue to manage their portfolios to
achieve even higher match levels.
Increased Match Requirements
Over 70 commenters addressed the
proposed increase in match. Several
commenters supported the proposed
share increase in principle or as an
overall strategy. One commission stated
that increasing a program’s match
requirement each year strengthens the
program’s connection to the local
community and increases the buy-in of
program sponsors. Several commenters
specifically indicated that their
organizations would not have trouble
meeting the new match requirements,
but they were concerned about the effect
of the new rule on other organizations,
particularly those in rural and severely
economically-distressed areas. One
commission indicated that programs in
its State would not have a problem
meeting the in-kind match
requirements, but would have trouble
meeting the cash match requirement
over time. In response to this last
comment, a grantee’s cash match
requirement may not necessarily
increase over time. Once a grantee meets
the minimum 15 percent non-Federal
cash match for member support costs,
the grantee may meet the balance of its
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overall share of costs through any
combination of operating and member
support matching resources, including
in-kind donations, provided that the
resources meet the criteria of 45 CFR
2541.240 or 45 CFR 2543.23, as
applicable.
Most commenters on this issue
opposed the proposed match increases.
Most of these commenters viewed the
increased match as inconsistent with
the long-term stated goal of creating ‘‘a
framework for long-term growth and
sustainability of the AmeriCorps
program as a public-private
partnership.’’ Many commenters stated
that ‘‘in the current philanthropic
climate, increasing the match
Year 1
Minimum Overall
Share ....................
Year 2
N/A
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Jkt 205001
Year 3
N/A
The final rule clarifies that, as is
currently the case, a grantee will be held
to its matching requirements at grant
closeout—usually at the end of each
three-year grant cycle. At that time, the
grantee must have contributed match in
an amount equal to the combined total
of each year’s required match amounts.
For example, if a grantee begins a
recompeting program grant matching at
the year 4 level (26 percent) and has a
grant in the amount of $100,000 in the
first year, $110,000 in the second year,
and $115,000 in the third year, the
grantee would be responsible at the end
of the three-year grant for a total of
$98,100 in match (the sum of 26 percent
of $100,000 in the first year, 30 percent
of $110,000 in the second year, and 34
percent of $115,000 in the third year.)
The Corporation does not necessarily
expect the grantee to provide match on
a year-by-year basis according to the
schedule, as long as the total match at
the end of the three-year grant meets the
regulatory requirements. If the grantee
does not reach the 26 percent threshold
of $100,000, or of actual expenditures,
in the first year of the grant (year 4 on
the matching scale), but makes up the
difference by matching more than the
amount required in year 2 or year 3
(year 5 or year 6 on the matching scale)
such that the cumulative match across
the three years meets the requirement,
the grantee will be in compliance and
will not be required to repay funds.
Several commenters indicated that the
increased match requirements will force
program staff to spend more time on the
administrative burdens of raising and
documenting match, which will directly
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requirements for AmeriCorps programs
will destabilize those programs and
force many out of existence.’’ One
commenter viewed the progressive
match increases as ‘‘steps toward defunding * * * without any
consideration for need and the impact of
the services provided.’’ The
Corporation, however, continues to
believe that an important piece of
sustainability is decreasing reliance on
Federal funding, and increasing the
capacity of organizations operating
AmeriCorps programs to assume more
of the cost. This will make existing
grantees stronger and more tied to their
communities, while allowing the
Corporation to satisfy Congressional
N/A
Year 4
26%
Year 5
Year 6
30%
Timetable for Match Increases
One commenter supported the 3-year
‘‘establishment phase’’ during which the
grantee share for new programs remains
unchanged and ‘‘grandfathering’’
existing programs into the match
schedule at the year 3 level.
A few commenters requested
clarification as to what the match
requirements would be for current
programs that have completed one or
more 3-year grant cycles on the date the
regulation takes effect and how the
‘‘N/A’’ applies to a program beginning
Frm 00013
Fmt 4701
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Year 7
34%
impact member attrition, service hours,
training and education, and
programmatic outcomes. Many
programs, however, have demonstrated
that they can exceed the expected match
levels without adverse results. Our
common challenge is to share best
practices to achieve both sustainability
goals and improve program outcomes.
For example, at least eight State
commissions already have match
requirements that are more stringent
than the Corporation’s current
requirements.
One commenter questioned how the
Corporation plans to use training and
technical assistance to help programs
that cannot meet the 50 percent match.
In response, the Corporation reiterates
its intent to target training and technical
assistance to assist grantees having
difficulty raising match. The
Corporation will consult with grantees
regarding the issues that training and
technical assistance should address, and
how best to deliver such training and
technical assistance.
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direction, invest in new programs, and
expand the reach of national and
community service. The Corporation
does agree that there is a point at which
match requirements can become destabilizing, but a 50 percent overall
share does not reach that point. In
addition, Congress has consistently
directed the Corporation to ‘‘increase
significantly the level of matching funds
and in-kind contribution provided by
the private sector.’’ The Corporation is,
therefore, maintaining the match
requirements as drafted in the proposed
rule, according to the following table,
except for programs in rural or severely
economically distressed communities,
which we address more fully later:
38%
Year 8
42%
Year 9
46%
Year
10 and
on
50%
its match requirements at the year three
level. In years 1 through 3 that an
organization receives a grant, it is
required only to meet the minimum 15
percent member support, and 33 percent
operational costs match requirements.
There is no overall match for years 1
through 3—hence the ‘‘N/A.’’ In each
year from year 4 on, once a grantee has
met the minimum 15 percent and 33
percent as described above, it may meet
the additional match in whatever
combination of additional member
support or operational costs match it
deems appropriate. Any program that
has received 3 or more years of
AmeriCorps funding on the date the
regulation takes effect will begin
matching at the year 3 level (meeting the
minimum matches in member support
and operating costs). These programs
will, therefore, have another 7 years
before their overall match requirement
reaches the maximum 50 percent match.
A new program will be required to meet
the 15 percent and 33 percent minimum
match requirements for member support
and program operating costs during its
first three-year grant period, and the
required overall match in year 4 and
beyond, unless the program receives a
waiver. The Corporation has not
amended the final rule on this point.
The following table reflects when and
how the new match requirements will
take effect:
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If in the 2005 program
year, your program has
received AmeriCorps
funding for this many
years
0
1
2
3
4
Then, you will
begin matching in
the 2005 program
year at this year
level
......................................
......................................
......................................
......................................
or more ........................
1
2
3
3
3
Impact of Match Requirements on
Small, Economically-Distressed, and
Rural Communities
Many commenters raised concerns
about the impact of the sustainability
requirements on small, economicallydistressed, and rural communities. One
representative of a commission in a
largely rural State was concerned that
the increased match requirements
would eventually mean that no
programs would exist in that
commission’s State because of the lack
of resources. Another State specifically
requested that its ‘‘unique geography,
weather, population, and general
remoteness be reflected in the
application of the new regulations,
either granting [the State] an exception
Year 1
Minimum Overall
Share ....................
for sustainability rules or creating a less
onerous sliding scale.’’
While the Corporation continues to
believe that most programs can meet the
requirements as stated in the proposed
rule, the Corporation is concerned about
the impact this rule could have on
programs operating in rural and
economically distressed areas across the
country. The Corporation wishes to
increase AmeriCorps participation in
those areas and is concerned that a
‘‘one-size fits all’’ approach to the match
might contravene that goal.
After much deliberation and
consideration of the comments on this
issue, the Corporation has developed an
alternative match schedule that, while
still requiring increases over time, does
so more gradually up to a 35 percent
overall match requirement in the tenth
year an organization receives
AmeriCorps funding. The Corporation
will authorize the alternative match
scale for programs that demonstrate they
are in rural or severely economically
distressed communities, and that they
need the lower match requirement. This
alternative match schedule will not be
available to programs that the
Corporation believes are able to meet
Year 2
N/A
Year 3
N/A
The alternative match requirement is
designed to address the specific
circumstances of programs that must
primarily conduct their fundraising in
low resource areas. The Corporation
believes that this alternative lower
match scale for the programs in our
neediest communities will allow such
N/A
Year 4
N/A
Year 5
Year 6
N/A
the regular match requirements. For
example, a program that historically has
demonstrated its ability to meet the
higher match will continue to be
required to do so, even if it is located
in a rural or severely economically
distressed community. The alternative
match requirement will allow programs
in rural and severely economically
distressed communities to provide
match over 10 years at a lower rate than
other programs, but still increase their
overall match levels over time. The
alternative match requirement will be in
effect for the duration of the three-year
grant period. A program that qualifies
for the alternative match requirement
will have to reapply to extend the
alternative match requirement for any
subsequent recompete application.
The alternative match scale for
programs in rural or severely
economically distressed communities
will incrementally increase beginning in
the seventh year the organization
receives AmeriCorps funding and reach
35 percent by the tenth year the
organization receives AmeriCorps
funding. The following table
summarizes the alternative match
requirements for these programs:
Year 7
N/A
programs to begin, or continue to
participate in AmeriCorps and meet
those communities’ unmet needs.
Qualifying for Alternative Match
Requirement as Rural
In determining whether a program is
rural, the Corporation intends initially
to consider the most recent Beale code
29%
Year 8
31%
Year 9
33%
1
2
3
4
5
6
7
8
9
Metro type
...............................
...............................
...............................
...............................
...............................
...............................
...............................
...............................
...............................
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Description
Metro .....................
Metro .....................
Metro .....................
Non-metro ..............
Non-metro ..............
Non-metro ..............
Non-metro ..............
Non-metro ..............
Non-metro ..............
16:52 Jul 07, 2005
Jkt 205001
Counties in metro areas of 1 million population or more.
Counties in metro areas of 250,000 to 1 million population.
Counties in metro areas of fewer than 250,000 population.
Urban population of 20,000 or more, adjacent to a metro area.
Urban population of 20,000 or more, not adjacent to a metro area.
Urban population of 2,500 to 19,999, adjacent to a metro area.
Urban population of 2,500 to 19,999, not adjacent to a metro area.
Completely rural or less than 2,500 urban population, adjacent to a metro area.
Completely rural or less than 2,500 urban population, not adjacent to a metro area.
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35%
rating published by the U.S. Department
of Agriculture for the county in which
the program is located. Any program
located in a county with a Beale code
of 6, 7, 8, or 9 will be eligible to apply
for the alternative match requirement.
The table below provides definitions for
each Beale code.
2003 BEALE CODES
Code
Year
10 and
on
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Qualifying for Alternative Match
Requirement as Severely EconomicallyDistressed
In determining whether a program is
located in a severely economicallydistressed county, the Corporation
intends initially to consider the
following county-level characteristics:
County-level per capita income is less
than or equal to 75 percent of the
national average for all counties using
the most recent census data or Bureau
of Economic Analysis data; the countylevel poverty rate is equal to or greater
than 125 percent of the national average
for all counties using the most recent
census data; and county-level
39575
unemployment is above the national
average for all counties for the previous
12 months using the most recently
available Bureau of Labor Statistics data.
The following table provides the
website addresses where the publiclyavailable information referred to above
can be found:
Web site address
Explanation
www.econdata.net .....................................................................................
Econdata.Net: This site links to a variety of social and economic data
by States, counties and metro areas.
Bureau of Economic Analysis’ Regional Economic Information System
(REIS): Provides data on per capita income by county for all States
except Puerto Rico.
Census Bureau’s Small Area Poverty Estimates: Provides data on poverty and population estimates by county for all States except Puerto
Rico.
Census Bureau’s American Fact-finder: Provides all 1990 and 2000
census data including estimates on poverty, per capita income and
unemployment by counties, States, and metro areas including Puerto Rico.
Bureau of Labor Statistics’ Local Area Unemployment Statistics
(LAUS): Provides data on annual and monthly employment and unemployment by counties for all States including Puerto Rico.
U.S. Department of Agriculture’s Rural-Urban Continuum Codes (Beale
codes): Provides urban rural code for all counties in U.S.
www.bea.doc.gov/bea/regional/rei ............................................................
www.census.gov/hhes/www/saipe/ ...........................................
www.census.gov/main/www/cen2000.html ...............................................
www.bls.gov/lau/home.htm .......................................................................
https://www.ers.usda.gov/Data/RuralUrbanContinuumCodes/ ...................
The location of a program will be
determined by the legal applicant’s
address, except where the Corporation
in its sole discretion determines that
some other address is more appropriate.
If a particular legal applicant believes
that its address or the use of countylevel data is not the appropriate way to
determine the program’s location or its
funding environment, the applicant may
make its case to the Corporation as to
why the Corporation should consider
the program location differently and the
basis for requesting the alternative
match requirement. An example might
include a program located in a more
affluent or urban area but with a
majority of its members serving at sites
located in rural or severely
economically distressed counties and
whose fundraising primarily occurs in
those counties through matching
contributions from the sites. The
Corporation will disseminate
instructions on how to apply for the
alternative match schedule in the
AmeriCorps application instructions.
Note that the alternative match
schedule for programs in rural and
severely economically distressed
counties does not replace the
Corporation’s existing statutory
authority to waive match based on a
demonstrated lack of resources at the
local level (§ 2521.70). The Corporation
accepts requests for waivers from any
program unable to meet its match
requirements if the waiver would be
equitable due to lack of available
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financial resources at the local level.
However, the Corporation provides
these waivers only in extreme
circumstances, and only when it would
be equitable. The burden is on the
grantee to demonstrate the unique lack
of resources in its community that
would support the Corporation’s
granting a waiver equitably.
Intermediaries
The Corporation received several
comments from intermediary
organizations expressing concern that
the 50 percent match requirement
would hamper their ability to provide
service to communities through a
changing portfolio of new and small
community organizations, including
faith-based. The Corporation believes
that the higher match may be difficult
for some organizations that regularly
bring on new small sites that themselves
contribute matching funds to meet
matching requirements. Many faithbased and small-community based
organizations are only able to
participate in AmeriCorps through this
type of intermediary organization that
has the infrastructure to manage all the
Corporation’s requirements. The
Corporation is concerned that the
increase in match requirements to 50
percent over 10 years could create a
barrier to those organizations’ continued
participation in AmeriCorps.
However, in attempting to craft
regulatory language that addresses this
issue, the Corporation was unable to
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adequately define ‘‘intermediary
organizations’’ without the rule
becoming either over-inclusive, or,
alternately, inappropriately inciting
organizations to change their business
model. Moreover, after close analysis,
the Corporation does not believe it
necessary to make substantive changes
to the regulations to accommodate these
types of organizations, as the
Corporation may use its statutory waiver
authority to accommodate an
organization that is having difficulty
meeting its match requirements due to
lack of resources at the local level.
The Corporation will consider
waiving the higher match requirements
for this type of intermediary if the
intermediary demonstrates (1) that the
majority of its members are placed in
new organizations or small faith-based
and other community organizations, and
(2) the intermediary derives its
matching funds substantially from the
contributions of placement
organizations that are unable to generate
the higher match amounts.
One commenter suggested that the
proposed match requirements would
have a disproportionate impact on
community organizations, including
faith-based organizations, and thus,
could violate section 104 of the
Temporary Aid for Needy Families
legislation (TANF), better known as
‘‘charitable choice.’’ The Corporation is
committed to equal protection and the
expansion of opportunities for
involvement by community
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organizations, including faith-based
organizations, and believes that this
final rule includes several refinements
that help to achieve those goals. These
include (1) the Corporation’s plan to
review similar program models together
in the selection process; (2) special
consideration in the selection process
for programs operated by, or involving,
community organizations, including
faith-based organizations; and (3) the
ability of members to engage in
capacity-building activities. In addition,
the Corporation’s waiver authority, as
discussed above, will enable the
Corporation to adjust match
requirements under limited
circumstances. The Corporation will
continue to look for effective ways to
include community organizations,
including faith-based organizations, in
national and community service.
Definition of ‘‘Grantee’’ for Purposes of
Match Requirements
Several commenters asked that the
Corporation clarify to whom the
matching requirements apply. The
Corporation has added a new section
2521.40 to clarify that matching
requirements apply to subgrantees of
State commissions and direct program
grantees of the Corporation. The
Corporation will hold State
commissions to an aggregate overall
match based on the matching levels of
all its subgrantees, which will be
adjusted annually to reflect the annual
change in each of the commission’s
subgrantee’s share of costs. A State
commission will be required to repay
funds to the Corporation if, in the
aggregate, the commission’s subgrantees
do not meet their match requirements
under these regulations. The
Corporation will expect the State
commissions to monitor match
requirements for their subgrantees and
ensure that individual subgrantees are
meeting their match requirements. The
Corporation will review subgrantee
match levels when an organization
recompetes for AmeriCorps funding. At
that point, the Corporation will consider
an applicant’s success in meeting both
its budgeted match (match as reflected
in an applicant’s grant application
budget) and regulatory match
requirements (match as required under
these regulations).
Some national direct organizations
requested that the match requirements
be imposed at the parent organization
(for multi-State grantees) level, while
others believed that it would be more
consistent to apply them at the sub-
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grantee or site level. One commenter
noted that national directs need the
flexibility to match at the grantee level
rather than the operating site level,
where resources may be more limited.
The Corporation believes that the
responsible entity for meeting the
increased match requirements is the
parent organization; however, the parent
can choose either to pass down the
match requirements or use a portfolio
strategy to manage the match
requirements across its sites.
Two commenters specifically noted
that tracking a program’s match
requirements based on the applicant
organization’s Employer Identification
Number (EIN) penalizes large
organizations that support a number of
programs. The Corporation agrees that
the EIN is not the appropriate identifier
to track program match. For purposes of
determining the applicable match
schedule, the Corporation will
determine tenure based on the
particular grant and project, rather than
legal applicant. The Corporation is
modifying its grants management
systems to enable us to track the
longevity of each program. Thus, one
legal applicant will, theoretically, be
able to receive funding for two separate
programs, under two separate grants,
subject to two different match scales
depending upon when each program
began to receive funding. Similarly, the
local site of a national direct grantee
may choose to end its relationship with
the national direct and compete on its
own for State commission funding. If
successful, this would constitute a new
program and a new grant, and matching
requirements would begin at the year
one level for this program.
State Flexibility To Meet Match
Requirements (§ 2521.65 in the
Proposed Rule)
Under § 2521.65 of the proposed rule,
if a State commission determined that a
particular subgrantee was unable to
meet its required matching levels
because it operated in a resource-poor
community, the State commission could
still meet that subgrantee’s matching
requirements by pairing a highmatching subgrantee in the State
commission’s portfolio with the lowmatching subgrantee to make up the
difference. Several commenters
supported the proposal to provide the
States with flexibility to manage their
portfolio of grantees. Two other
commenters, however, requested that
the Corporation provide flexibility to
States to use a State portfolio average for
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grantee share, rather than allowing
commissions to pair low-matching with
high-matching subgrantees, as described
in the proposed rule. As discussed
above, while a commission’s
subgrantees will be individually
responsible to the State for meeting their
required match levels according to the
match scale they are on, we will hold
State commissions to a State portfolio
aggregate overall match, based on all the
programs’ match requirements in a
State’s portfolio. This means that a State
commission will be required to monitor
and enforce match requirements for its
individual grantees, but will have the
flexibility to accommodate
discrepancies in match across its
portfolio, without increasing its liability
to repay funds. The Corporation will
only consider the actual matching
history of individual commission
subgrantees if and when they apply for
AmeriCorps competitive funding.
This revised approach makes the
provision in the proposed rule that
allowed commissions to pair a lowmatching subgrantee with a highmatching one for the purpose of meeting
match unnecessary. The Corporation
has, therefore, deleted that provision
from the final rule.
Match Requirements for Organizations
With Break in Funding (§ 2521.80)
The proposed and final rule clarify
that an organization that has not directly
received an AmeriCorps State or
National operational grant for five years
or more, as determined by the end date
of the organization’s most recent grant
period, may begin matching at the year
1 level upon receiving a new grant from
the Corporation. This means that, for
example, a site of an existing grantee, or
a recipient of a planning grant, that
chooses to apply directly to the
Corporation for AmeriCorps program
funding will be able to apply as a year
1 program, subject to the year 1 match
requirements. A program that starts in a
State’s formula portfolio, on the other
hand, and then moves three years later
to the competitive pool, will continue
meeting match requirements based on
where the program was matching the
year before. One commenter supported
this approach. The final rule includes a
new paragraph (b) to § 2521.80 that
explains the requirements for former
grantees with a break in funding of less
than five years.
The following table summarizes the
circumstances under which an
organization would be deemed to have
had a break in funding:
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If you previously were a
And then, within 5 years, apply as a
National direct parent, Professional Corps,
State competitive, or State formula program.
Limitations on the Use of Federal Funds
The comments revealed some
confusion over grantees using other
Federal funds to meet the increased
match requirements. As reflected above,
the Federal share of member support
costs, excluding health care, may not
exceed 85 percent. There is no statutory
prohibition or limit in the NCSA on an
organization using other Federal funds,
to the extent otherwise permitted, to
cover its share of operating (i.e. costs
other than member support) or health
care costs. As a matter of compliance,
grantees may use Federal funds for their
non-member support related match, as
long as the other Federal agency permits
its funds to be used as match for
Corporation funds. However, as a matter
of program performance, more nonFederal funds are better, because
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Your status for purposes of match will be
National direct parent, Professional Corps, Existing grantee (match at the level you would
State competitive, or State formula program.
have matched the year following your last
grant year).
National direct parent, Professional Corps, New grantee (begin match at year 1).
State competitive, or State formula program.
National direct subgrantee or site, State competitive subgrantee or site, or State formula
subgrantee or site.
Any other Corporation grantee ...........................
Changing Legal Applicants (§ 2521.90)
The proposed rule stated that an
organization that is a new or
replacement legal applicant for an
existing program would be required to
provide matching resources at the same
level as the previous legal applicant was
matching at the time the new
organization took over the program.
Two commenters objected to this
provision, stating that the original legal
applicant may have many established
sources for match that are not available
to the new legal applicant, and the latter
therefore might not be able to pick up
where the first legal applicant left off.
Another commenter asked the
Corporation to define an existing
program under this proposed provision.
By existing program, the Corporation
means a set of project activities meeting
specific unmet needs of a community
previously funded by the Corporation.
Over the years, several programs have
had a change in legal applicants either
in the middle of a grant cycle, or at the
end of a grant cycle. The Corporation,
therefore, saw a need to include a
provision to address this circumstance.
To the extent that a new grantee is
unable to meet the match at the level of
the predecessor legal applicant, the
grantee may request a waiver of the
match requirements due to lack of
resources at the local level.
39577
National direct parent, Professional Corps, New grantee (begin match at year 1).
State competitive, or State formula program.
Congress’ mandate to the Corporation is
to ‘‘increase significantly the level of
matching funds and in-kind
contributions provided by the private
sector.’’ Consequently, an organization’s
reliance on Federal funds could have an
impact in the selection process, where
we will consider the diversity of nonCorporation funding, including nonFederal funding, and the extent to
which grantees are increasing private
sector contributions.
Several commenters objected to the
proposed blanket prohibition on a
grantee’s using other Federal funds for
the grantee’s share of member support
costs. While the proposed rule appeared
to set a maximum Federal share of 85
percent for all member benefits, that
was not the Corporation’s intent. The
Corporation has amended the language
in § 2522.250(b)(3), relating to health
care benefits, to reflect, consistent with
the NCSA, that health care benefits are
subject to a maximum Corporation share
of 85 percent, rather than a maximum
Federal share.
The final rule also includes a
technical amendment in § 2521.45(a)(2)
relating to professional corps programs.
In the proposed rule, the Corporation
reiterated, in clearer language, the
current regulatory language, by stating
that professional corps programs could
not use any Corporation or other Federal
funds for any part of the member living
allowance. In practice, the Corporation
has never prohibited professional corps
programs from using non-Corporation
Federal funds towards the living
allowance, and does not believe that
such an extreme limitation is
appropriate or warranted by statute. The
Corporation is, therefore, amending the
final rule to reflect that professional
corps programs are prohibited only from
using Corporation funds for the living
allowance, thereby bringing the
regulation in line with Corporation
policy and practice.
Match Requirements for Indian Tribes
Indian Tribes must, as a general
matter, meet the regular match
requirements applicable to all
Corporation grantees. Most of the
Corporation’s current tribal grantees,
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however, are located in rural or severely
economically depressed areas of the
country. Consequently, they will likely
be eligible to waive into the alternative
match requirement, assuming they have
not demonstrated the ability to meet
higher match requirements in the past.
To the extent that a tribal grantee is not
able to meet even the alternative match
requirement, the Corporation will, as
always, consider using its statutory
waiver due to lack of resources at the
local level. In compliance with
Executive Order 13175, the Corporation
will handle any waiver request from an
Indian Tribe in an expedited manner.
Match Requirements for U.S. Territories
Section 1469a of title 48, United
States Code, requires departments and
agencies to waive ‘‘any requirement for
local matching funds under $200,000
(including in-kind contributions)
required by law’’ for Guam, the Virgin
Islands, American Samoa, and the
Northern Mariana Islands.
Consequently, the Corporation waives
the AmeriCorps matching requirements
for those U.S. Territory governments.
Non-profits and other organizations
located in the territories that apply
directly to the Corporation are not
eligible for this title 48 waiver, and will
be required to meet the match
requirements applicable to all regular
AmeriCorps programs, absent some
other Corporation waiver.
Other Assistance for Low-Matching
Programs
In the proposed rule, the Corporation
identified several strategies of targeted
assistance for otherwise well-performing
and compliant programs who are
demonstrably at risk of not meeting the
new matching requirements. The
Corporation remains committed to
assisting grantees in the following ways:
(1) By looking for opportunities to align
our resources, including training and
technical assistance and other program
resources such as VISTA members, if
appropriate, to help grantees identify
new strategies to raise matching
resources and community support and
to help broaden and build the capacity
of community organizations; (2) by
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looking for opportunities to help raise
resources; (3) by providing State
commissions the flexibility to meet their
overall match requirements in the
aggregate across their portfolio of
programs; and, (4) through limited use
of the Corporation’s statutory authority
to waive match requirements for those
satisfactorily performing and otherwise
compliant programs that demonstrate an
inability, in spite of reasonable efforts,
to achieve sufficient financial support to
meet the increased matching
requirements.
The Corporation believes that
incrementally increasing match
requirements and providing an
alternative match requirement for
programs in rural and severely
economically distressed communities,
together with the measures described
above that are designed to assist
grantees in meeting the new
requirements, satisfy Congressional
direction and represent a fair, equitable,
and authoritative resolution of the issue
of organizational financial
sustainability, such that additional
requirements in annual appropriations
bills, or through rulemaking, are not
necessary. We intend to monitor and
report to the public on a regular basis
the progress grantees are making in
leveraging Federal resources.
D. Codifying the Cap on Child-Care
Payments and Corporation Share of
Health Benefits (§ 2522.250)
Child Care
Section 140(e) of the Act authorizes
the Corporation to establish guidelines
on the availability and amount of childcare assistance. By current regulation,
child-care payments for eligible
AmeriCorps State and National
members are ‘‘based on’’ amounts
authorized under the Child Care and
Development Block Grant Act of 1990.
These payments are made directly to the
child care provider on behalf of a fulltime member eligible for childcare
assistance. To be eligible, a full-time
participant must be the parent or legal
guardian of a child under 13 who
resides with the participant, must have
a family income less than 75 percent of
the State’s median income, must not
currently be receiving child care
assistance from another source
(including another family member), and
must certify that such assistance is
necessary in order to participate in
AmeriCorps. To be eligible to receive a
payment, a child care provider must be
eligible to receive payments under the
Child Care and Development Block
Grant Act of 1990. In the proposed rule,
the Corporation made one change to
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existing regulation by explicitly capping
the amount of child-care benefits for any
individual AmeriCorps member at the
level established by each State under
the Child Care and Development Block
Grant.
One commenter opposed the
proposed change on the grounds that it
could lead to a reduction in the amount
of assistance available to an AmeriCorps
member in a State that requires counties
to match Federal Child Care and
Development Block Grant funds. Several
commenters expressed concern that the
proposed rule did not provide direction
to a State that is issued a waiver under
the CCDBG program. Several
commenters expressed concern that the
proposed rule was not clear on what
formula would be used to determine
child care assistance. Two commenters
commended the proposed rule for
providing clarity and direction to State
childcare agencies and providers.
Another commenter recommended that
current levels for child care be
maintained in order to preserve equal
access and opportunity to AmeriCorps.
The final rule ensures that child care
assistance on behalf of eligible
AmeriCorps members does not exceed
applicable payment rates to an eligible
child care provider established by each
State under the Child Care and
Development Block Grant Act. Under
that Act, each State must certify that
payment rates are sufficient to provide
access to child care services for eligible
families that are comparable to those
provided to families that do not receive
subsidies. To demonstrate that its plan
achieves equal access, a State must
consider the results of a local market
survey conducted at least every two
years. The CCBDG Act affords States
latitude in setting payment rates—rather
than a formal waiver mechanism—
provided that a State demonstrates that
it has considered key elements of equal
access, outlined in the U.S. Department
of Health and Human Services
regulations published at 45 CFR 98.16
and 98.43. The fact that a particular
State might require counties to
contribute a portion of the payment
does not affect the amount of the
payment to an eligible provider, which
is based on the local market survey. An
AmeriCorps member is eligible for the
same payment established by the State
under the CCDBG Act to an eligible
child care provider in the applicable
locality, regardless of whether a county
contributes to that payment. The
Corporation seeks only to ensure that
any child care assistance to an eligible
AmeriCorps member not exceed the
applicable payment rate to an eligible
provider under the CCDBG Act.
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Therefore, the only change we have
made in the final rule is to clarify that
the payment rate in question is ‘‘to an
eligible provider.’’ However, we intend
to solicit suggestions about how, given
the relatively limited Federal funds
available, we should structure the
provision of child care assistance to fulltime AmeriCorps members, and may
amend these regulations in the future.
Health Care Benefits
In § 2522.250(b)(3) of the proposed
rule, the Corporation mistakenly
referred to a maximum Federal share for
health care benefits, rather than the
maximum Corporation share of 85
percent, as provided in statute. Several
commenters noted the discrepancy. The
Corporation has amended the abovereferenced section, and added a new
§ 2521.45(a)(4) to now refer to the
maximum Corporation share.
One commenter read the proposed
rule as mandating health care benefits
for all members. The Corporation did
not, in fact, change any of the rules
relating to health care benefits for
AmeriCorps members. Programs must,
as always, provide each full-time
member with health benefits if the
member does not otherwise have
coverage.
E. AmeriCorps Grants Selection Process
and Criteria (§§ 2522.400 Through
2522.475)
In addition to establishing specific
AmeriCorps grant application
requirements, section 130 of the Act,
gives the Corporation broad authority to
set additional application requirements
and to establish the selection process.
We are adjusting our grant selection
criteria to meet three objectives: (1) To
better align the selection criteria with
elements that predict program success;
(2) To incorporate into the selection
criteria greater emphasis on all elements
of sustainability; and (3) To provide
transparency, predictability, and
consistency for organizations applying
for AmeriCorps funds.
The proposed rule described the
Corporation’s processes and criteria for
selecting grantees. In selecting
AmeriCorps programs, the Corporation
generally needs to know four things: (1)
An organization’s plan and its expected
outcomes; (2) Whether the organization
can manage Federal funds, and operate
and support the proposed program
effectively; (3) The budget adequacy and
cost-effectiveness of the proposed
program; and (4) For an existing
program, whether the organization has
implemented a sound program,
including achieving strong outputs and
outcomes, demonstrating organizational
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capability and cost-effectiveness, and
complying with other Corporation
requirements.
To address these issues, the proposed
rule modified the current structure of
three overall categories of criteria—
Program Design, Organizational
Capability (formerly Organizational
Capacity), and Cost-Effectiveness
(formerly Budget/Cost-Effectiveness).
We adjusted the weights of the three
categories to better balance program
design against organizational strength,
which is reflected through
organizational capability and costeffectiveness. Consequently,
• Program Design was worth 50
percent of the score (as opposed to 60
percent currently),
• Organizational Capability remained
at its current 25 percent weight, and
• Cost-Effectiveness increased to 25
percent (as opposed to 15 percent
currently).
Under these regulations, the
Corporation’s focus within Program
Design is now on the relationship
between an applicant’s rationale and
approach, on the one hand, and the
outputs and outcomes to be achieved for
members and the community, on the
other. Most of the criteria from the
Corporation’s current AmeriCorps 2005
guidelines remain part of the revised
selection criteria, although they may
now appear under a different category.
(Please visit our website at
www.nationalservice.gov/
funding_initiatives to view the
AmeriCorps 2005 guidelines). We also
added criteria across all three categories
to better reflect our focus on outcomes
and sustainability and our desire to
maintain a portfolio that serves a broad
range of people through diverse program
models.
General Comments About Selection
Criteria and Process
Two commenters supported the
Corporation’s effort to clarify the grant
selection criteria. One of these
commenters expressed the hope that
this process and the criteria would
foster stronger cooperation between
States and the Corporation. Several
commenters, however, felt that the
proposed rule did not achieve the
NPRM’s stated goals of providing
transparency, predictability, and
consistency. Three commenters
recommended maintaining the grant
selection criteria currently in use.
The Corporation strongly believes
that, in setting out the selection process
and criteria in regulation, and tightening
the selection criteria themselves, the
Corporation has greatly increased the
transparency, predictability and
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consistency of the selection process.
Furthermore, the Corporation has
endeavored to clarify, step by step, how
the selection process works.
One commenter noted that the
proposed rule fails to distinguish
between new and recompeting
applicants regarding which elements
would apply only to recompeting
organizations. The Corporation has
amended the language to indicate,
where relevant, that a particular
provision applies only to applicants that
have previously received AmeriCorps
funding.
Some commenters read the proposed
rule as removing State and local control
over which programs receive funding in
the State. The Corporation disagrees
with this interpretation. First, States, as
always, have broad discretion over
which programs to fund through their
formula allocation. Second, States
continue to have the discretion to
decide which proposals to forward to
the Corporation for competitive funding.
The selection criteria, as proposed, do
not represent a substantial deviation
from the selection criteria the
Corporation has used up until now—
they are more focused, clearer, more
specific, and incorporate more elements
relating to performance and
sustainability.
Two commenters recommended that
the selection criteria explicitly include
program enrollment and retention rates.
The Corporation agrees that a program’s
history of member enrollment and
retention rates should be a factor in the
selection process. The final rule
includes a new subsection
2522.425(b)(2) to reflect this. The
Corporation does not, however, believe
it necessary to include a specific
selection criterion on the timeliness of
reporting, particularly since the
Corporation may consider a grantee’s
reporting on prior grants under
§ 2522.470(b)(1), in the context of
clarifying and verifying information in a
grant application. We expect all
Corporation grantees to comply with all
program requirements, including timely
reporting. While the Corporation has an
interest in improving grantee timeliness
with reporting requirements, we do not
believe it is appropriate to measure as
basic an expectation as meeting
deadlines in the competitive process.
One commenter suggested that the
Corporation hold a separate grant
competition for stand-alone AmeriCorps
programs whose sole mission is national
service. This commenter viewed such
stand-alone programs as having unique
costs and benefits that the Corporation
may not be able to consider in the
context of a broader competition. The
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Corporation does not believe that a
separate grants competition is necessary
for these types of programs as we are
prepared, in the grant selection process,
to consider the unique circumstances of
programs.
Overall Criteria Weight (§ 2522.440)
One commenter supported the
increased weight on cost-effectiveness.
Four commenters, on the other hand,
specifically recommended keeping the
weight of program design at 60 percent.
One recommended decreasing the
weight of organizational capability to 15
percent in order to keep program design
at 60 percent. One commenter felt that
25 percent for program infrastructure
(presumably organizational capability)
was too high, because if a program is
performing well and cost-effective, one
may presume sound program
infrastructure. The Corporation notes, in
response, that we did not propose to
change the current weight of
organizational capability. Both the
proposed rule and the final rule
maintain the weight of organizational
capability at its current 25 percent.
Several commenters recommended
that program quality should be more
important than cost-effectiveness, and
others urged that program design and
performance measurement be given
more weight. Many commenters
opposed increasing the weight of the
cost-effectiveness category. One of these
commenters believed that AmeriCorps
programs are already cost-effective.
Four commenters suggested that the
emphasis on cost-effectiveness will lead
to lower quality programs. Several
commenters expressed concern that it
will discourage innovative program
design, particularly those reaching hard
to serve areas or populations, or
distressed rural, poor communities with
lack of private and local government
resources. As stated throughout this
document, the Corporation is very
deliberately trying to ensure that the
selection criteria, particularly those
relating to cost-effectiveness, take into
consideration the inherent costs and
unique circumstances of each program.
The Corporation, therefore, does not
anticipate that the shift in emphasis of
the selection criteria will lead to the
results the commenters above are
expecting. The Corporation will,
however, monitor the impact of the
proposed rule and will publicly share
its findings.
Program Design (§ 2522.425)
One commenter stated that fostering
civic responsibility should not be a
criterion for selection. The Corporation
disagrees. The Corporation believes that
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AmeriCorps programs should plan for
this in a systematic way, and that it is
a relevant measure of sustainability.
This criterion remains in the final rule.
One commenter recommended
including in the final rule language that
would ask intermediaries to identify the
process by which they will select issue
areas and partners, rather than require
them to define services and partners for
the coming year. Applicants can do this
already under the proposed selection
criteria. An organization that typically
selects its placement sites and specific
service activities following approval of
the grant will be able, within the
selection criteria as currently drafted, to
identify how it will select its placement
sites and emphasize the types of service
activities the program typically
supports. The Corporation will
continue, however, to require all
applicants to include their proposed
operating sites and, at least, a general
description of member activities in the
application for funding.
One commenter recommended that if
a program scores poorly in the rationale
and approach category, it should receive
no further consideration. The
Corporation anticipates that any
applicant that scores poorly in the
rationale and approach category will be
unable to adequately respond to the
other selection criteria and, therefore,
will ultimately score poorly overall. In
our view, it is significantly easier to
articulate the need for the program than
to describe and secure all the elements
necessary for program success. For that
reason, we do not believe that the
rationale and approach subcategory of
program design needs more weight or
emphasis than it had in the proposed
rule.
One commenter recommended that
the Corporation clarify its commitment
to racial, ethnic, and socioeconomic
diversity. Two commenters urged the
Corporation to reward programs that
successfully recruit a diverse group of
participants in terms of racial, ethnic,
socioeconomic, geographic and
educational backgrounds in the grant
selection process. In fact, the
Corporation’s selection criteria under
program design specifically reward
applicants who can show they have
plans to recruit a diverse corps of
members. Another commenter suggested
the Corporation intensify efforts to
identify and support programs that seek
to enroll youth who are low-income or
out-of-school. The Corporation’s on-line
application allows applicants to selfidentify their program model from a list
that includes youth corps. Our ability to
more clearly identify program models,
and our plan to review, to the extent
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possible, similar models together, will
allow us to ensure that our portfolio of
programs is rich and diverse. In
addition, three of the Corporation’s
priorities, as listed in § 2522.450,
specifically include this population.
One commenter interpreted the
language in § 2522.425(c)(3) as
expecting programs to replace member
activities with volunteers. The language
refers to assessing the extent to which
a program ‘‘generates and supports
volunteers to expand the reach of your
program in the community.’’ This
section was not intended to result in
volunteers replacing member
activities—the goal of this provision was
to assess the impact and reach of a
program’s volunteer generation and
support activities in the community.
Organizational Capability (§ 2522.430)
In § 2522.430(c) of the proposed rule,
the Corporation stated that in reviewing
a proposal submitted by a State
commission for competitive funding,
the Corporation may deny funding to a
program applicant if the Corporation
determines that the State commission’s
financial management and monitoring
capabilities are ‘‘materially weak.’’
Several commenters expressed concern
that the process for determining a State
commission to be ‘‘materially weak’’ is
not clear. One commenter
recommended that the status of a
commission be based on set criteria and
clarified prior to the opening of the
grant process, and others opined that
applicants should not be penalized if
their State commission is weak.
The Corporation’s intent in including
this factor in the selection criteria was
to ensure that, in approving a State’s
portfolio of programs, the Corporation is
able to match the commission’s capacity
with the needs of the programs we are
approving. While the Corporation does
assess commission capacity through the
administrative standards process, the
Corporation does not, in fact, have a
mechanism by which it determines a
State commission to be ‘‘materially
weak,’’ and therefore has decided not to
use the term in this context. For these
reasons, the Corporation has removed
paragraph (c) from § 2522.430 in the
final rule.
The Corporation will, however, assess
a commission’s capacity to manage and
monitor grants as it prepares to approve
the commission’s grants package, and
may determine that a commission does
not have sufficient capacity to manage
a particular grant, or manage more than
a certain number of grants. The
Corporation has added a new paragraph
(c) to section 2522.470 that addresses
this issue.
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Section 2522.430(a)(3) of the
proposed rule included as a criterion
the extent to which an applicant is
securing community support that is
‘‘stronger’’ and more diverse. One
commenter found the use of the term
‘‘stronger’’ unclear, and recommended
that the final rule replace that language
with ‘‘recurs, expands in scope, or
increases in amount.’’ The Corporation
agrees that the suggested language is
more precise and has amended the final
rule accordingly.
Cost Effectiveness and Corporation Cost
per MSY (§ 2522.435)
In the proposed rule, the Corporation
changed the name of the former Budget/
Cost Effectiveness category to ‘‘CostEffectiveness’’ and increased the overall
weight of the category from 15 percent
to 25 percent. Within this category, the
Corporation focused on the adequacy of
the applicant’s budget to support the
planned program design, and whether
the program is cost-effective, as
measured through one or more of
several indicators of cost-effectiveness,
including a program’s Corporation cost
per MSY.
The Corporation received a significant
number of comments on the proposed
cost-effectiveness category. Several
comments focused on defining the costeffectiveness of a program based on
program quality and results. Other
commenters recommended determining
cost-effectiveness by comparing similar
program models for their value as an
investment based on mission, quality,
location, and results, as well as cost.
One commenter expressed concern
that the Corporation would decide not
to fund an otherwise high-quality
program for falling just short of its
required matching level. The
Corporation’s goal is to fund highquality programs. The principal
mechanism to enforce match
requirements is through the grants
closeout process, which could require a
grantee to repay funds if the grantee has
not met required match levels. The
inability to meet match does not
necessarily bar a program from
successfully recompeting, because the
selection process allows the Corporation
to take into account specific
circumstances, strengths, contributions,
and challenges of individual programs
in deciding who should receive funding.
Clearly, a program’s record of match is
a factor the Corporation will consider,
but it is just one of many factors, and
each applicant will have the
opportunity in the selection process to
explain its record in meeting its
required match.
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Many commenters did not support
increasing the weight of the costeffectiveness category. Some
commenters suggested that the
emphasis on cost-effectiveness would
lead to lower quality programs. One
commenter suggested renaming the
category as ‘‘Budget, Cost, and Grantee
Share,’’ maintaining the total score of
the cost-effectiveness category at 15
percent (rather than 25 percent as
proposed), and, within that 15 percent,
assigning 5 percent for Corporation cost
per MSY, 5 percent for budget grantee
share, and 5 percent for adequacy of
budget to support program design.
Another commenter suggested
weighting the budget adequacy with 50
percent of the points in that category,
and Corporation cost per MSY with the
other 50 percent. Another suggested that
cost-effectiveness be further divided to
reflect 60 percent for budget adequacy
and 40 percent for Corporation cost per
MSY.
With respect to renaming the category
as proposed above, grantee share and
Corporation cost per MSY are two of
several indicators of cost-effectiveness.
It would not, therefore, make sense to
limit the category to these two
indicators. The Corporation agrees,
however, that removing the term
‘‘budget’’ from the name of this category
may have led people to believe that
cost-effectiveness was the only aspect
the Corporation considered important.
In fact, the Corporation believes that
budget adequacy is an important factor
in the selection process. Accordingly,
the Corporation is reinserting the words
‘‘budget adequacy’’ into the title of this
category of criteria in §§ 2522.420
through 2522.448.
As to the commenter’s proposal to
maintain the overall scoring of the costeffectiveness and budget adequacy
category back at 15 percent, the
Corporation believes that doing so
would be counter to its efforts to
increase the importance of budget
adequacy and cost-effectiveness in the
grant selection process. The Corporation
views cost-effectiveness and budget
adequacy as at least as important as
organizational capability, which is also
25 percent, and believes that the
appropriate balance is 50 percent for
program design, and 50 percent for
organizational capability and costeffectiveness and budget adequacy
combined. Consequently, the
Corporation is maintaining the costeffectiveness and budget adequacy
category at 25 percent in the final rule.
With respect to weighting the factors
within cost-effectiveness and budget
adequacy, the Corporation does see
merit in clarifying how it will weigh the
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two separate criteria of costeffectiveness and budget adequacy.
Consequently, the final rule, in new
§ 2522.448, indicates that the criterion
relating to program cost-effectiveness
will be worth 15 points out of the 25,
with the remaining 10 points for the
adequacy of the budget to support the
program design. The 15 points for
program cost-effectiveness incorporate
several different elements: The
program’s proposed Corporation cost
per MSY, and other cost-effectiveness
indicators, such as the extent to which
the program demonstrates diverse nonFederal resources; the program’s
matching levels; and, for a recompeting
program, the program’s ability to
expand outcomes without a
commensurate increase in Corporation
assistance. An applicant can receive
high points for cost-effectiveness by
proposing a competitive cost per MSY
and by showing its strength in any one
(or more) of the other cost-effectiveness
criteria. We did not, however, include
sub-scores for these individual
elements, but only for cost-effectiveness
as a whole.
Several commenters read the
proposed rule as emphasizing cost over
quality in the grant selection process.
Two commenters recommended
conducting a blind review of program
design and organizational capacity prior
to evaluating programs on the basis of
cost-effectiveness in order to ensure that
the Corporation funds programs with
good models, rather than programs that
are simply cheap. The Corporation notes
that the cost-effectiveness portion of the
new cost-effectiveness and budget
adequacy category is worth only 15 of
the 100 total possible points. While the
Corporation is placing more weight on
cost-effectiveness than in the past, this
emphasis is consistent with
Congressional direction and our efforts
to promote program sustainability. That
being said, the quality of a proposal is
still important, and a poor quality
program is unlikely to receive funding,
even if it is low-cost.
Because cost-effectiveness is only
worth 15 percent of the total score and
the criteria allow the Corporation to take
into account individual contributions
and circumstances of programs, the
Corporation sees no reason to review
program design and organizational
capacity separately—the most costeffective program will not receive
funding if the program model is not
sound and the organization does not
have the capability to operate it.
Two commenters requested
clarification on how the 25 percent for
cost-effectiveness and budget adequacy
would apply to Education Award
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Programs. As discussed earlier,
Corporation cost per MSY and increase
in match indicators are not relevant in
the context of assessing the costeffectiveness of an EAP program. The
Corporation does believe, however, that
both the adequacy of the budget to
support the program, and other
indicators of cost-effectiveness can and
should apply to EAP programs.
Consequently, the cost-effectiveness and
budget adequacy category will remain at
25 percent for EAP programs, just like
for other programs. The Corporation
has, however, amended § 2522.435 by
adding a new paragraph (c) that
explicitly identifies the costeffectiveness indicators that do not
apply to EAP programs.
Corporation Cost per MSY in the
Selection Process
The proposed rule included, for the
first time, Corporation cost per MSY as
an indicator of cost-effectiveness. A few
commenters noted that Corporation cost
per MSY should be considered, but
should not be the primary
consideration. Many commenters read
the proposed rule as making
Corporation cost per MSY the
paramount or ‘‘tie-breaker’’ criterion in
the new selection criteria. This was not
the Corporation’s intent. The
Corporation’s goal in emphasizing its
inclusion of Corporation cost per MSY
in the criteria as one measure or
indicator of cost-effectiveness was to
give programs an incentive to lower
their Corporation cost per MSY as one
of many elements to be more
competitive. The Corporation continues
to view the cost per MSY as a key
indicator of cost-effectiveness.
Nonetheless, a program that has a higher
Corporation cost per MSY that is
justified in its application and that
demonstrates cost efficiency in other
ways under the cost-effectiveness
criteria, could still score enough points
in the cost-effectiveness category to be
eligible for funding.
Five commenters found the proposed
rule to be unrealistic in that it appears
to value expanding program size and
impact while, at the same time,
decreasing funding. Several commenters
recommended removing program
growth and expansion from the
selection criteria, given the emphasis on
decreasing the Federal share of funding.
The Corporation does not agree with
this recommendation, as a program can
show cost-effectiveness either by
decreasing the Corporation share of
costs or by growing in size without a
commensurate growth in budget.
One commenter did not intrinsically
have a concern with the increase in
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emphasis in Corporation cost per MSY,
but considered the determination of
cost-effectiveness as subjective, and
therefore suggested that each program
be evaluated individually. While the
Corporation will review programs
together on panels of like programs, we
do not score programs against each
other, but rather each program
individually against the selection
criteria.
One commenter requested
clarification of the terms ‘‘deeper
impact’’ and ‘‘broader reach’’ as used in
§ 2522.435(a)(2)(iii) of the proposed rule
(§ 2522.435(a)(1)(ii)(C) in the final rule).
By ‘‘deeper impact,’’ the Corporation is
looking for more pronounced outcomes
that show the program is having a more
beneficial impact on a static number of
beneficiaries. By ‘‘broader reach,’’ the
Corporation means outcomes that affect
more beneficiaries in the community or
affect a larger portion of the community
with a static level of impact.
Individual Program Circumstances
Several commenters viewed the
proposed rules as favoring low-cost
programs over a program’s quality and
results. Some commenters were
concerned that the criteria favor parttime programs over full-time programs.
Other commenters viewed the selection
criteria as favoring urban areas with
more access to resources than rural
areas. And yet another commenter was
concerned that the rule did not
adequately recognize or address the fact
that different program models require
different levels of Federal investment.
Two commenters were concerned that
the emphasis on cost-effectiveness will
discourage innovative program designs,
particularly those reaching hard-to-serve
populations. Another commenter stated
that the rule would threaten programs
with at-risk members, because they
require more resources than programs
with college-educated members.
Sections 2522.430(b) and 2522.435(b)
of the proposed rule indicated that, in
assessing an organization’s capability
and the cost-effectiveness and budget
adequacy of the proposed program, the
Corporation would consider a variety of
individual program circumstances that
might put an applicant’s proposal into
context. The goal was to give the
Corporation the opportunity to fully
weigh the contributions and benefits, as
well as the challenges that individual
programs and organizations might face
in competing under these criteria.
While the language in sections
2522.430(b) and 2522.435(b) remains
unchanged, the Corporation reiterates
here its commitment to considering
cost-effectiveness in the context of all
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that the applicant proposes—including
its level of innovation, its focus on areas
with higher need, its program model, its
contributions, and its challenges. The
Corporation does not believe that there
can be a ‘‘one cost fits all’’ approach in
the AmeriCorps program; on the
contrary, the Corporation recognizes the
breadth and diversity of programs,
service, community beneficiaries, and
individual circumstances, and is
committed to considering all of these
when selecting programs. The
Corporation will not replace highquality and high-impact programs with
low-cost programs that cannot meet the
unmet needs in our communities.
Waiver Process and Impact on Selection
The proposed rule included two
possible bases for waivers—one relating
to the requirement to recruit or support
volunteers; the other relating to match
requirements. Several commenters
expressed concern as to when
applicants would apply for and receive
waivers, and the impact those waivers
would have on the selection process.
Three commenters suggested that the
Corporation address waiver requests
before the applicant submits the full
grant application, and three others
asked how the waiver request would
impact the selection process. Several
commenters specifically recommended
that waivers not affect grant scoring.
As discussed earlier in section VI(B)
of this preamble, the Corporation
intends to consider waivers of the
requirement that programs recruit or
support volunteers after the proposal
has been reviewed, but prior to
awarding the grant. Volunteer
recruitment will also remain a
competitive criterion in the grant
selection process, regardless of the
outcome on the waiver request.
An applicant requesting an alternative
match requirement or a waiver of match
due to lack of resources at the local
level, must request a waiver before
submitting its application for funding.
This will enable applicants to include
an appropriate budget with their grant
application. Applicants applying
through a State commission will be
required to request waivers from the
Corporation through the commission.
The Corporation will address the
process for obtaining a waiver in the
applicable grant application
instructions.
Considering Similar Program Models
Together
In applying the selection criteria, the
Corporation will ensure, to the
maximum extent possible, that similar
program models are evaluated together.
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This will help promote equity and
fairness. One commenter strongly
supported this approach. A different
commenter requested a definition of
‘‘similar program models.’’ Another
commenter asked the Corporation to
clarify how it will consider programs
together. As a general matter, the
Corporation defines its different
program models according to the list of
statutory program models included in
§ 122(a) of the NCSA. When an
organization applies to the Corporation,
it must self-identify which program
model best describes its proposal. To
the extent practicable, the Corporation
then groups programs together on
review panels, first by program model,
such as youth corps or professional
corps, and then, if possible, by other
factors such as program design (e.g.,
statewide initiative or intermediary),
member model (e.g., individual
placement or team-based), issue area
(e.g., environment or tutoring) and
geographic area to be served (e.g., urban
or rural). The more applications the
Corporation receives in a particular
competition, the more focused each
review panel can be. For example, in the
2004 competition, the review panels the
Corporation used included a panel
reviewing proposals from campus-based
professional corps, one reviewing
community corps statewide initiatives,
and two panels looking at community
corps team-based programs focused on
independent living. In addition to
looking at like-programs together, this
process allows us to ensure that we fund
a broad and diverse portfolio of
programs.
Information Outside the Application
(§ 2522.470)
The proposed rule described in detail
relevant information outside of the grant
application that the Corporation may
consider in making grant decisions. A
few commenters asked how the
Corporation would consider each
document in the selection process. Two
commenters argued that considering
supplemental documents would create
an unlevel playing field and could
‘‘appear to be an advantage to a more
sophisticated sponsor, or, again, to
discourage new small community-based
organizations.’’ One of these
commenters recommended that, if the
Corporation does consider additional
documents, the Corporation should only
use documents provided by the
applicant and should clearly identify
how the document will be scored. One
commenter asked the Corporation
whether the documents on this list will
be used to supplement information in
an application, or just to verify
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information. Another commenter
recommended that the Corporation
clarify what information it will consider
and the weight it will give to the
information.
The Corporation will not supplement
an applicant’s proposal with
information that is not included in the
proposal except to clarify or verify
information as described below—to do
otherwise could create an unlevel
playing field and would be contrary to
the Corporation’s practice that an
applicant may not submit supplemental
material after the application deadline.
Nor will the Corporation score any
additional information it may consider.
The primary purpose for obtaining
information outside the application is to
clarify information that is included in
the applicant’s proposal and to verify
assertions made in an applicant
organization’s proposal, including
engaging in due diligence to ensure that
the applicant organization can
appropriately manage Federal funds.
The Corporation will not lower an
applicant’s score, for example, based on
the quality of its Web site—however, the
information on the Web site may, in
certain circumstances, clarify an
organization’s structure, shed light on
an organization’s history, or provide
other information that validates data in
the application. To clarify the
Corporation’s intent with respect to
considering information outside of the
grant application, the final rule includes
specific language in § 2522.470(b)
stating that the Corporation may
consider this information only to clarify
or verify information in an application,
including engaging in due diligence.
In addition, the Corporation has pared
down the list of information sources
from 21 items to 11. Several of the
individual items listed in the proposed
rule have been subsumed into single
broader categories. The Corporation
removed the financial management
survey from the list because the
Corporation does not use the survey to
make grant decisions. Rather, the
Corporation uses it to assess the training
and technical assistance that approved
applicants may need to establish
appropriate systems for managing
Federal funds.
One of the information sources in the
proposed rule was reports from the
Corporation’s Office of Inspector
General (OIG). One commenter
suggested that the Corporation only
consider final OIG reports because
issues raised in draft reports often are
resolved before the IG issues its final
report. The Corporation does not believe
it should be precluded from considering
any information the OIG might make
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available to the Corporation regarding
prospective grantees, particularly
information that might impact a
prospective grantee’s ability to manage
Federal funds or operate an AmeriCorps
program. Reports, whether draft or final,
contain information that the
Corporation may properly consider even
before a final report is issued. However,
we recognize that a final report might
have more reliable information than a
draft report, and we intend to give
appropriate consideration based on the
specific circumstances surrounding the
report. The Corporation has amended
the language in § 2522.470(b)(4)
(2522.470(b)(6) in the proposed rule) to
clarify that the Corporation may
consider any internal agency
information, including information from
the OIG.
One commenter suggested that the
Corporation replace the list of outside
information with language that states
that ‘‘the Corporation conducts due
diligence on prospective applicants,’’
including examining ‘‘financial and
programmatic information as well as [an
applicant’s] previous experience
operating Corporation programs as
applicable.’’ As discussed above, the
Corporation has added language to the
final rule that speaks to the Corporation
using the information described as a
part of conducting due diligence on
applicants, but the Corporation believes
that including a list provides more
clarity and specificity than simply
stating the Corporation will undertake
due diligence activities.
If the Corporation denies an
application for funding based on outside
information that is at variance with
information in the application, the
Corporation will inform the applicant,
through the Corporation’s feedback
process, of the specific information the
Corporation considered.
Applicants Eligible for Special
Consideration (§ 2522.450)
In the NPRM, the Corporation
indicated that, after we apply the basic
selection criteria, we may apply one or
more of the Corporation’s selection
priorities. The NPRM also indicated that
the Corporation may announce
additional priorities in the Notice of
Funding Availability (NOFA), or other
notice to the public. Our intent,
however, in codifying the selection
priorities in these regulations was to
provide transparency and baseline
consistency for current and prospective
grantees. The list of selection priorities
in the proposed rule reflects several
long-standing priorities as well as a
smaller number of new priorities that
we believe are appropriate.
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Three commenters asked the
Corporation to clearly identify how it
will apply selection priorities or provide
‘‘special consideration’’ to programs
under § 2522.450. One commenter was
concerned that many programs address
more than one program activity and
recommended that the final rule reflect
that. The Corporation’s goal in giving
special consideration to certain program
models or activities is to ensure that our
portfolio of programs includes, to the
extent possible, a meaningful
representation of programs addressing
those priorities. In each competition, the
number of proposals that receive special
consideration will vary depending upon
how many high-quality applications the
Corporation receives that address the
enumerated priorities. The Corporation
has amended the language in the final
rule to clarify that the Corporation may
give special consideration to ensure that
its portfolio of programs includes a
meaningful representation of programs
that address one or more of the
enumerated priorities.
One commenter supported adding
homeland security to the list of national
priorities, as long as homeland securityrelated activities were not required for
all programs. As stated above, the
Corporation will ensure that its portfolio
of programs includes a meaningful
representation of programs that address
homeland security, but is not requiring
all programs to engage in homeland
security activities, or any of the other
activities included on the list for special
consideration.
One commenter supported the
inclusion of lower-cost professional
corps programs (§ 2522.450(a)(2)) on the
list for special consideration because it
will encourage the development of more
high-quality professional corps
programs. Another person commented
that States find it difficult to develop
programs from community
organizations, including faith-based
organizations, because of the
complicated application process and the
lack of State resources to coach
applicants through the process.
Consequently, this commenter found
the priority for such programs
somewhat meaningless. The
Corporation acknowledges that many
community organizations may find the
AmeriCorps structure and process
challenging. Nonetheless, the
Corporation hopes that special
consideration for this group of
applicants will encourage more such
programs to accept this challenge and
apply for funding. In addition, the
special consideration for community
organizations, including faith-based
organizations, (§ 2522.450(a)(1))
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includes both programs operated by
these types of organizations, and
programs that do not have these
characteristics themselves, but that
support the efforts of community
organizations, including faith-based
organizations, to solve local problems.
This means that an intermediary, for
example, that includes significant
service or placements with community
organizations, including faith-based
organizations, would fall within this
category of programs eligible for special
consideration. The Corporation hopes
that larger grantees will bring on as sites
or sub-grantees other community
organizations, including faith-based
organizations, that are unable
themselves to apply directly for funds.
One commenter noted that the
proposed rule created a preference for
faith-based organizations over secular
organizations by providing special
consideration to ‘‘an organization of any
size that is faith-based’’ but limiting the
analogous special consideration to only
‘‘small community-based
organizations.’’ To avoid this, the
Corporation has amended
§ 2522.450(a)(1) to remove the reference
to ‘‘small.’’ The Corporation has also
amended the language in this section of
the final rule to refer to ‘‘community
organizations, including faith-based
organizations,’’ rather than ‘‘faith-based
and community-based organizations,’’
as was used in the proposed rule.
One commenter opined that any
religion-based criterion or preference in
the grant selection process is
unconstitutional and therefore should
be eliminated from the final rule.
Another commenter opposed faithbased organizations receiving a
preference over secular programs
because secular programs are more
likely to be subject to nondiscrimination laws. In including a
priority for community organizations,
including faith-based organizations, the
Corporation is not carving out funding
exclusively for faith-based
organizations. Providing special
consideration for community
organizations, including faith-based
organizations, is not including any
religion-based criterion in the selection
process—it is merely a way to ensure
that the Corporation’s portfolio includes
a meaningful representation of programs
operated by or reaching community
organizations, including faith-based
organizations. The Corporation has
acknowledged that many community
organizations may find the AmeriCorps
structure and process challenging, and
hopes that providing special
consideration for this category of
applicants may make it more
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worthwhile for this type of organization
to apply for AmeriCorps funding.
One commenter recommended that
special consideration be given to
programs that address a State priority.
Section 2522.460 of the proposed rule,
mirrored in the final rule, addresses the
circumstances under which the
Corporation will give special
consideration to programs that address
a State priority, rather than one of the
Corporation’s priorities.
The Corporation has added
‘‘disadvantaged youth’’ to
§ 2522.450(b)(1) to better align that
selection preference with the
Corporation’s strategic goal of
addressing the needs of that population.
In addition, the Corporation has added
programs that will be conducted in rural
communities and in severely
economically-distressed communities to
the list in § 2522.450(c) to reflect the
Corporation’s goal of expanding the
presence of AmeriCorps in those
communities. To align our selection
criteria with the Corporation’s strategic
goals, the final list of programs eligible
for special consideration includes
programs that increase service and
service-learning on higher education
campuses in partnership with their
surrounding communities, and
programs that foster service
opportunities for baby-boomers. Finally,
the Corporation has more clearly
defined in § 2522.450(b)(8) the types of
community-development programs that
may receive special consideration.
State Commission Rankings of
Competitive Proposals (§ 2522.465)
The final rule mirrors the proposed
rule in requiring State commissions to
prioritize their State competitive
proposals in rank order to help inform
our selection process. The Corporation
originally included this provision in
response to State commission feedback
that the Corporation sometimes did not
fund proposals that a State considered
its strongest or most competitive. The
Corporation, however, had no way to
know which proposals each State felt
were most worthy of competitive
funding and, thus, was unable to take
that into consideration in the selection
process.
The Corporation received several
comments relating to this new
requirement. One commenter strongly
supported State rankings because States
are in a better position to know the local
needs than anyone else. On the other
hand, two commenters opposed State
rankings based on the increase in time
and effort it will take at the State level,
and the uncertainty of whether the
Corporation will abide by the rankings.
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Several commenters expressed concern
over the Corporation’s lack of specificity
about how and when the Corporation
would use the rankings, and what
criteria States should use in ranking the
proposals.
The Corporation intentionally did not
specify how States should go about
ranking their proposals, in an effort to
give maximum flexibility to each State
to decide what is important to that
State. The Corporation understands that
each State may rank its proposals based
on different criteria and different
priorities. The Corporation expects
States to rank their proposals based on
the relative quality of the proposals. In
providing the rankings, a State will have
the ability to summarize the process and
criteria it used in ranking its proposals.
With respect to how and when the
Corporation will use the rankings, the
proposed rule stated that the
Corporation ‘‘may consider’’ them, and
made clear that we would not
necessarily be bound by them in making
grant decisions. Again, the State
rankings will not be determinative or
definitive. However, the Corporation
will use them as a way of checking
against potential disparities in the peer
review process to ensure appropriate
treatment for a program that a State
highly values. For example, if a
proposal that a State has ranked very
high scores very low in peer review, the
Corporation may move that proposal to
staff review to ensure that the peer
review scores were, in fact, appropriate.
If the staff review agreed with peer
review, the proposal would not move
forward, despite its top ranking from the
State. The Corporation also plans to use
the rankings towards the end of the
selection process to assist us in
determining the best funding package
for each State. The Corporation does not
believe it necessary to amend the
regulatory language to reflect this. The
only change in the final rule is to clarify
that the Corporation ‘‘will,’’ rather than
‘‘may’’ consider rankings.
In the proposed rule, the Corporation
indicated that we may, in the future,
choose to limit the number of proposals
any one State may submit for State
competitive funding to streamline the
selection process and make optimal use
of outside peer review panels. One
commenter opposed any such
limitation. The Corporation notes that it
has limited the number of proposals a
State may submit in at least one past
competition. The Corporation does not,
however, intend to implement this
limitation in the short-term, but reserves
the right to do so in the future. If so, we
will announce the limitation in the
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appropriate NOFA or other funding
announcement.
State Peer Review and Selection
Processes (§ 2522.475)
In the proposed rule, the Corporation
addressed questions about State
commission peer review requirements
and why the Corporation conducts peer
reviews of proposals that State
commissions may have already peer
reviewed. Section 133(d)(4) of the NCSA
requires the Corporation to ‘‘establish
panels of experts’’ to review
applications for funding for more than
$250,000, and to consider the opinions
of the panels prior to making grant
decisions. Again, while the regulatory
language does not specify this, the
Corporation wishes to clarify that the
Corporation does not require State
commissions to peer review AmeriCorps
State competitive proposals. The
Corporation conducts peer reviews of
competitive proposals at the national
level to ensure equitable consideration
of all applications and to comply with
the NCSA. A State commission may be
required, under State law, to peer
review State competitive proposals, or it
may choose to do so on its own. The
Corporation does require State
commissions to peer review their
formula proposals to ensure compliance
with the NCSA, as the Corporation
never has the opportunity to peer
review those proposals at a national
level.
Two commenters strongly supported
State commissions using peer reviews to
decide which applications to propose
for funding. One commenter suggested
that if States are not required to conduct
peer review processes, they will have to
expend a great deal of energy to ensure
fairness and objectivity in their
selection process. Again, State
commissions must peer review formula
proposals and may use a peer review
process for competitive proposals if they
so choose. The Corporation recognizes
that State commissions that peer review
all the proposals they receive in
selecting both their competitive and
formula submissions, this leads to
successive peer review of some
applications. The Corporation, however,
peer reviews all competitive proposals
at the national level across all States so
that we can establish a common review
nationally, rather than State by State,
and to comply with the statute.
In § 2522.475 of the proposed rule, the
Corporation indicated that it ‘‘does not
require [commissions] to use the
Corporation’s selection criteria and
priorities’’ in selecting State formula
grant programs or operating sites. One
commenter strongly supported this
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policy. Two commenters, on the other
hand, interpreted this language as
inconsistent with the statutory
requirement in 122 (b)(3) of the Act (42
U.S.C. 12572(b)(3)). These commenters
read this section of the statute as
requiring ‘‘universal use of the selection
criteria’’ that the Corporation establishes
for its own selection process. The NCSA
does not support these commenters’
interpretation. The section of the NCSA
in question deals specifically with
‘‘qualification criteria to determine
eligibility’’ for AmeriCorps grants—that
is to say, who is eligible to apply—
which is different from determining
who ultimately is selected to receive a
grant from the pool of eligible
applicants. The NCSA requires each
recipient of AmeriCorps funds to use
the qualification or eligibility criteria
that the Corporation establishes, but
does not require States to use the
selection criteria the Corporation
develops for deciding to whom to award
funds.
Note, however, that 133 of the NCSA
does include a list of required criteria
that both the Corporation and States
must include among the selection
criteria they develop. (42 U.S.C. 12585).
The list includes the following required
criteria: (1) The quality of the national
service program proposed to be carried
out; (2) the innovative aspects of the
national service program, and the
feasibility of replicating the program; (3)
the sustainability of the national service
program based on evidence such as the
existence of strong and broad-based
community support for the program and
of multiple funding sources or private
funding for the program; (4) the quality
of the leadership of the national service
program, the past performance of the
program, and the extent to which the
program builds on existing programs; (5)
the extent to which participants of the
national service program are recruited
from among residents of the
communities in which projects are to be
conducted, and the extent to which
participants and community residents
are involved in the design, leadership,
and operation of the program; (6) the
extent to which projects would be
conducted in one of the country’s
distressed and neediest areas; and (7) for
non-State applicants, the extent to
which the application is consistent with
the State-wide service plan of the State
in which the projects would be
conducted. The Corporation has added
this list of required criteria to
§ 2522.475. The Corporation has
incorporated all of these criteria in its
selection process for AmeriCorps grants,
and States must do the same.
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39585
F. Corporation Cost per Member Service
Year (MSY) (§ 2522.485)
In the proposed rule, the
Corporation’s goal was to strengthen the
Corporation’s basic selection criteria,
and explicitly include a program’s
proposed Corporation cost per MSY as
a key indicator of cost-effectiveness at
§ 2522.435. The proposed regulations
also defined the Corporation cost per
MSY as the budgeted grant costs
divided by the number of MSYs
awarded in the grant. The budgeted
grant costs exclude: (1) Child-care for
individual members, for which the
Corporation pays directly; and (2) the
education award a member may receive
from the National Service Trust after
successfully completing a term of
service.
One commenter felt that using the
term ‘‘budgeted grant costs’’ could be
read to include both the Corporation’s
share of budgeted grant costs as well as
the grantee’s share. The commenter
suggested that the Corporation amend
this section to specify that we are
referring to ‘‘the Corporation’s share of
budgeted grant costs.’’ The Corporation
agrees with this comment and has made
this change in § 2522.485 of the final
rule.
As stated in the proposed rule, the
Corporation will announce annually any
changes in the maximum program
Corporation cost per MSY. Several
commenters recommended that the
mandated cost of living increase be
indexed with corresponding increases
in the Corporation cost per MSY. Two
commenters suggested that
organizations be allowed to apply for an
increase in funding not just for the
living allowance increases, but also
increases in health care expenses. One
commenter recommended that the
Corporation grant exceptions in the
maximum Corporation cost per MSY for
programs incurring exceptionally high
costs for members in States with high
workers’ compensation premiums. In
response, we note that the Corporation
does not address Corporation cost per
MSY by waiver; rather, we negotiate the
Corporation cost per MSY for each
program before awarding a grant. The
Corporation sets a maximum
Corporation cost per MSY for State
programs to accommodate programs
with inherently higher costs that make
it difficult for them to meet the average
Corporation cost per MSY. National
Direct grantees have the ability to
balance higher cost sites with lower cost
sites to stay within their maximum
Corporation cost per MSY. With rare
exceptions, the Corporation does not
believe it should fund programs whose
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Corporation cost per MSY exceeds the
maximum Corporation cost per MSY.
That said, the Corporation does reassess
annually the maximum Corporation cost
per MSY for individual AmeriCorps
State programs and the maximum
average Corporation cost per MSY, and
makes adjustments as necessary and
appropriate.
We anticipate that making
Corporation cost per MSY a competitive
factor and gradually decreasing the
Federal share of grantee costs through
our sustainability efforts will, over time,
create sufficient and optimum
downward pressure on Corporation
costs, both at the individual program
level and within State portfolios, and is,
ultimately, more appropriate than
arbitrary maximum and maximum
averages. In the short term, however, the
Corporation will review annually the
maximum Corporation cost per MSY
and maximum average Corporation cost
per MSY and consider granting a
continuation or recompeting program’s
request to increase its Corporation cost
per MSY by an amount not to exceed
the statutorily-required percentage
increase in its previous year’s
AmeriCorps member living allowance.
(42 U.S.C. 12594(a)). However, the
Corporation cannot, by rule,
automatically index the Corporation
cost per MSY to increases in the living
allowance and other fixed costs, given
the unpredictability of the annual
appropriations process.
One commenter was concerned that
the regulatory language itself did not
articulate the Corporation’s intent to
consider increases in the allowable cost
per MSY. The regulatory language
establishes how an organization
calculates its Corporation cost per MSY.
The Corporation does not set a
maximum in the regulation and,
therefore, does not need to include any
language about increases to the
maximum.
As stated above and in the proposed
rule, the Corporation will continue to
hold State commissions to a maximum
average, and direct grantees to a
maximum Corporation cost per MSY.
State commissions will calculate their
portfolio’s average Corporation cost per
MSY by dividing the Corporation’s
share of the budgeted grant costs for all
their AmeriCorps programs (including
EAP and planning grants) by the
number of member MSYs awarded
across their portfolio of AmeriCorps
programs. The budgeted grant costs do
not include child-care for individual
members, the education award a
member receives from the National
Service Trust for fulfilling a term of
service, or non-program grant funds
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such as a State commission’s
administrative grant, disability, or
Program Development and Training
(PDAT) funds. We encourage State
commissions to use the Education
Award and Professional Corps programs
and national direct grantees to use
‘‘education award only’’ positions
within their overall national direct grant
as a way to lower their average
Corporation cost per MSY, while
maintaining high-quality programs.
One commenter asked the
Corporation to allow States to receive a
fixed number of Education Award
Program slots annually for them to
award through their State formula
process. The Corporation does not
believe that dividing up the allocation
of Education Award Program positions
among all State commissions would be
a good use of these resources at this
time. In addition, Federal policy is that
grants should be made on a competitive
basis. The NCSA authorizes the
Corporation to award formula funds and
corresponding AmeriCorps positions
non-competitively, but we have no
similar congressional directive for
Education Award Program positions and
grant funds. The Corporation believes
that this is a matter best addressed
through authorizing legislation, rather
than regulation.
In the proposed rule, the Corporation
discussed the possibility of excluding
planning grants from a State’s
calculation of its average Corporation
cost per MSY. Currently, the average
Corporation cost per MSY for each
commission includes the formula funds
they use for planning grants. Some of
the input the Corporation received prior
to publishing the proposed rule for
comment suggested that the Corporation
give States more leeway to use planning
grants to foster new AmeriCorps
programs by taking the cost of planning
grants out of the average Corporation
cost per MSY calculation for each
commission. Many commenters strongly
supported the idea of excluding
planning grants from the calculation of
program costs. As indicated in the
proposed rule, the Corporation plans to
study the budgetary implications of this
approach over the coming year.
However, we are unable to implement
this measure at this time given current
budget constraints.
One commenter suggested that
national direct grantees be allowed to
exclude funds they use to train their
members from their Corporation cost
per MSY calculation, in the same way
that State commission PDAT funds are
excluded from the commission’s average
Corporation cost per MSY. This
commenter also suggested that grantees
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be allowed to exclude the costs required
for in-depth program evaluation from
the cost per MSY calculation. With
respect to training funds, it would not
be appropriate to exclude them from a
national direct grantee’s cost per MSY
for several reasons. First, national
directs often benefit from State PDAT
allocations because each commission is
strongly encouraged to include national
direct grantees in any program
development and training activities they
conduct at the State level. In addition,
while commissions do not include
PDAT in their Corporation cost per
MSY, their AmeriCorps program grants
include training funds for programs,
which are included in the Corporation
cost per MSY calculation. Finally, the
Corporation views PDAT funds as more
similar to a commission’s administrative
grant than to program funds for
purposes of calculating the
commission’s Corporation cost per
MSY.
In response to a commenter’s
suggestion that evaluation costs be
excluded from a program’s Corporation
cost per MSY, the Corporation does not
agree. Evaluation is a program
requirement and an essential cost of
operating a successful program. The
Corporation will take into account the
impact of evaluation costs on a
program’s Corporation cost per MSY
when applying the cost-effectiveness
criteria in the selection process.
The Corporation will announce on its
website at www.nationalservice.gov the
annual maximum average Corporation
cost per MSY for State commissions and
the maximum Corporation cost per MSY
for national directs. For the 2005
program year, the maximum average
Corporation cost per MSY for State
commissions and the maximum
Corporation cost per MSY for national
directs will remain at the current level
of $12,400. The Corporation recognizes
that the member living allowance may
increase and we will review the
maximum average cost per MSY
annually with this and other changes to
program costs, and our sustainability
goals, in mind.
While we acknowledge that cost per
MSY may be defined in several different
ways, our methodology is intended
primarily to enable grantees and
subgrantees to manage Corporation costs
at the program and State commission
level, and to estimate the projected costs
of proposed programs.
G. Performance Measures and
Evaluation (§§ 2522.500 Through
2522.740)
The Corporation is continuing to
build on the progress we have made in
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demonstrating results, both to ensure
that the Corporation continues to
demonstrate the true impact of national
service, and that programs continue to
improve, as well as to fulfill the
expectations laid out in the Government
Performance Results Act of 1993, the
Administration’s Program Assessment
Rating Tool (or PART), and Executive
Order 13331 on National and
Community Service Programs. The
proposed rule codified the Corporation’s
current requirements for performance
measurement, focused independent
evaluation requirements on large
grantees, and generally reflected current
Corporation practice. In addition, the
proposed rule described the relationship
between performance measures,
evaluations, and funding decisions. The
Corporation believes that a stronger
emphasis on performance measurement
and evaluation will strengthen
AmeriCorps programs and foster
continuous improvement. In line with
E.O. 13331, emphasizing performance
measures and evaluation will also help
us identify both best practices and
models that merit replication, as well as
programmatic weaknesses that can be
corrected most effectively when
identified early.
The proposed rule distinguished
performance measurement from
program evaluation, while making
explicit that grant funds used to pay for
either activity are not considered
‘‘administrative costs’’ or subject to the
5 percent statutory cap on
administrative costs. A grantee would
be allowed to use grant funds to pay for
performance measurement and
evaluation up to the approved amounts
for such activities in its grant. These
provisions remain largely unchanged in
the final rule.
Several commenters viewed the
proposed rule as increasing performance
measures and the burden on grantees.
While the proposed rule and final rule
emphasize performance measures,
neither the proposed rule, nor the final
rule, is intended to increase the burden
on grantees. The final rule generally
codifies existing Corporation policy in
this area.
One commenter was concerned that
the Corporation does not use the data it
collects for any type of national
reporting. One of the Corporation’s goals
is to identify the best way to report the
data that the Corporation collects to our
grantees and the public. Currently,
individual program officers use this
information to assist in managing the
grants and directing programs to the
appropriate resources, as well as to
assess program impact and
effectiveness. The Corporation provides
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information to the public using the data
submitted by grantees and programs in
the Corporation’s annual Performance
and Accountability Report
(www.cns.gov/about/reports.html). Also,
the State Profiles and Performance
Report presents performance results
achieved by the Corporation’s national
and community service programs
(www.cns.gov/pdf/research/CNCSPerformanceReport-Ind.pdf). This
recently released report is the first
report offering comprehensive
performance data by State and program.
Finally, the Corporation is in the
process of redesigning its Web site so
that members of the public and grantees
can more easily negotiate the site and
locate pertinent information and
reports. The Corporation views this as
an ongoing process of increasing the
availability and transparency in our
reporting of performance data. The
Corporation will continue to collaborate
with grantees to make better use of data
and to ensure that a key benefit of all
reporting is the opportunity to see data
reflected back in broader context.
One commenter opposed the
Corporation’s performance measures
requirement because, in this
commenter’s opinion, they have made
applying for AmeriCorps funds more
confusing and have increased the
complexity and detail of reporting. This
commenter recommended returning to
simple objectives or using simplified
performance measures.
The Federal government, as a whole,
is moving towards performance
measurement and reporting on
outcomes. The Corporation does not
believe that the previous system of
reporting on objectives provided enough
detail or substance to show the true
impact national service has in our
communities across the nation.
Defining Performance Measurement,
Outputs, and Outcomes
In sections 2522.520, 2522.570, and
2522.700 of the proposed rule, the
Corporation defined the terms
performance measurement, output
indicators, intermediate-outcome
indicators, and end-outcome indicators.
One commenter found the use of the
word ‘‘indicator’’ in these definitions
misleading, given that the rest of the
rule does not refer to indicators, and
suggested that the Corporation resolve
the mismatch in the final rule. Another
commenter suggested that the final rule
broaden the definitions to include
references to community changes in
addition to changes in the lives of
community beneficiaries. The
Corporation agrees with both these
comments, and has (1) removed the
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39587
word indicator from the abovereferenced sections, and (2) broadened
the language of the definitions in the
above-referenced sections to include
changes to the community.
National Performance Measures
(§ 2522.590(b))
While the proposed rule allowed an
applicant organization to propose and
negotiate performance measures unique
to the applicant’s program, the rule also
provided that the Corporation would
establish one or more national
performance measures on which all
grantees would have to report. The
proposed rule indicated that the
Corporation would establish a national
performance measure on volunteer
leveraging, may establish performance
measures of member satisfaction, and
will develop any national standardized
performance measures in consultation
with AmeriCorps grantees.
In general, most commenters
supported the concept of developing
national performance measures for all
programs. However, several commenters
noted potential concerns, such as the
ability of these national measures to
reflect the diversity of programs and
approaches, the ability of programs to
set their own measure of how well they
are meeting needs in their communities,
the need to preserve creativity and
innovation of local programs, and the
potential for programs to be redesigned
to fit a certain model based on the
national performance measures, rather
than being designed to meet community
needs. Several commenters suggested
that the Corporation consult with
grantees in developing any national
performance measures.
The Corporation does intend, as
stated in the proposed rule, to develop
a limited number of national measures
applicable to all (or most) programs,
such as the number of community
volunteers leveraged, hours served by
community volunteers, and memberrelated measures, in addition to the
program-nominated national
performance measures. The Corporation
also plans to develop other standard
national measures that might apply only
to particular types of programs or
activities. The Corporation’s goal in
doing this will be to diminish the
burden on grantees to develop measures
in these areas, and to provide the
Corporation with consistent measures
on which to report at the national level.
This process of developing national
outcome measures for all programs to
reflect their impact on communities or
the lives of service recipients is a longterm project, given the diversity of
programs and issue areas. Even within
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a single issue area, such as youth
development or environment, the
diversity of programs addressing
different needs and interests makes it
challenging to develop uniform outcome
measures at the national level without
significant dialogue with State
commissions and our other service
partners. Finally, the Corporation notes
that national measures will not replace
the need for or the ability of programs
to show progress in areas of local
concern through program-nominated
measures. The Corporation intends, as
reflected in the proposed rule, to engage
the field in developing any national
performance measures, through an open
public process, and plans to finalize
member-related national measures
within 18 months of publication of this
final rule. The Corporation will
continue to dialogue with the field in
developing these and other national
measures over the coming months and
years. The Corporation, does not,
however, see a need to change the
language in § 2522.590(b) of the
proposed rule.
Measuring Performance of the
‘‘Primary’’ Service Activity (§ 2522.580)
Section § 2522.580(b) and (c) of the
proposed rule stated that performance
measures need not cover the scope of an
entire program, but should give a clear
indication of a program’s primary
purpose and objectives. Section
2522.580(c) also required programs to
include at least one end-outcome
measure that captures the results of the
program’s primary activity.
Several commenters noted that their
programs, mostly intermediary models,
do not have a primary activity, but
rather engage in many different
activities in different issue areas. One
commenter suggested that the rule
define the elements of an intermediary
program and accept performance
measures that speak to an
intermediary’s overall goal. Another
commenter recommended embracing
the overall goal of the intermediary
program to allow programs to collect
performance measurement across
service activities focused on areas such
as large-scale capacity building.
If at all possible, intermediaries
should report on the activities of their
operating sites or subgrantees. We
recognize, however, that in some cases
this is not feasible. If it is not possible
for an intermediary to identify a primary
or significant area of activity, the
Corporation is open to considering other
measures that relate specifically to the
overall mission and focus of the
intermediary organization itself. For
example, an intermediary organization
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with members placed at multiple
unaffiliated sites, through which
members participate in many different
activities in many different
communities, might be able to submit a
measure relating to the extent to which
the intermediary is building the
capacity of grass-roots organizations to
serve their communities. For another
program in which members engage in
many different activities, the program
may nonetheless be able to identify one
activity that makes up a significant part
of the program’s service activities, and
report an end-outcome on that activity.
To clarify our intent in this regard, the
Corporation has incorporated what was
paragraph (c) of § 2522.580 in the
proposed rule into paragraph (a)(1) of
that section, and changed the language
to capture the results of ‘‘the program’s
primary activity, or area of significant
activity for programs whose design
precludes identifying a primary
activity.’’
The Corporation is also modifying the
requirement that only an end-outcome
capture the program’s primary activity
or area of significant activity. The
Corporation has concluded that, as a
general matter, a program would likely
need to start with an output and an
intermediate outcome, in order to be
able to report on an end outcome.
Furthermore, the Corporation has an
interest in seeing at least one set of
performance data on a program’s
primary activity or area of significant
activity. Consequently, the final rule
requires that grantees submit at least
one set of aligned measures (described
in more detail below), rather than just
an end-outcome, on the program’s
primary activity or area of significant
activity. Programs should note that, in
addition to the minimum requirements,
they may submit additional relevant
measures of their performance in other
issue areas.
One commenter opined that end
outcomes, in general, are not reasonable
in AmeriCorps because of the annual
turnover of members. This commenter
recommended that the Corporation not
require end outcomes. The Corporation
has made available guidance and
technical assistance materials to the
field on how programs can achieve endoutcomes, not within a member service
year, but within the grant period (See
www.nationalservice.gov/resources for
information on toolkits, available
Corporation assistance, and helpful
websites.) While programs may not be
able to achieve some end-outcomes,
such as preventing air pollution, they
can achieve measurable results. Youth
development and education programs
can assess improvements in
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achievement and behavior of youth
tutored and mentored, environmental
programs can measure changes in water
pollution and improvements in lands
and trails, and programs designed to
develop members can achieve outcomes
such as members obtaining GEDs,
developing specific skills, or entering
careers based on their program
experience. Logic models can be very
helpful tools in helping programs to
identify clear and measurable outcomes
and understand the steps along the way
in achieving their goals, each of which
can be measured and used as
performance measures.
Aligning Performance Measures
(§ 2522.580)
Section § 2522.580(d) of the proposed
rule required programs to choose at least
one set of performance measures that
are aligned with one another. For
example, a tutoring program might use
the following aligned performance
measures: (1) Output: Number of
students participating in a tutoring
program; (2) Intermediate Outcome:
Percent of students reading more books;
and (3) End Outcome: Average increase
in reading level or test scores. The
Corporation included this requirement
to allow both service programs and
Corporation staff to understand the
logical connections between each step
in the chain from program activity to
program performance and results. As
discussed above, the final rule in
§ 2522.580(a)(1) requires that the one
required set of aligned performance
measures must capture the program’s
primary activity or area of significant
activity. The Corporation believes that
this will provide a clearer picture of the
extent to which programs are
demonstrating results.
Several commenters noted that their
programs engage in many different
activities in different issue areas, and,
therefore, want to submit measures in
several areas rather than just one set of
aligned measures in only one area.
Several commenters appeared to read
the provision as requiring all the
performance measures of a program to
be aligned and speak to the same
priority—for example, if a program
chooses one set of performance
measures on tutoring, all its
performance measures must relate to
tutoring and tutoring activities. One
commenter suggested revising the
language to clarify that one set of
aligned performance measures is the
minimum requirement, but that any
additional performance measures that a
program submits need not be aligned.
The Corporation believes that it is
important for a program to identify the
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connections between activities and
results, and to have information to
assess performance. That is the impetus
for continuing to require one set of
aligned performance measures—that is
to say one output, one intermediate
outcome, and one end-outcome all
relating to the same primary activity or
priority. The Corporation does not,
however, expect that all of a program’s
performance measures, beyond the one
required set of aligned measures, will
speak to the same priority, or to the
program’s primary activity. Nor does the
Corporation require programs to submit
more than one aligned set of measures.
A program may, once the minimum
requirement of one set of three aligned
measures is satisfied, submit relevant
additional measures of their
performance in other issue areas that do
not necessarily need to be aligned. For
example, a program may submit a set of
performance measures around tutoring,
such as the example given above, and,
in addition, provide various outputs,
intermediate outcomes, or end outcomes
relating to other program activities such
as volunteer recruitment or support,
mentoring, or member development. To
make this clear, the Corporation is
amending the language in § 2522.580(d)
and (f) of the proposed rule
(§ 2522.580(a) and (d) of the final rule)
to make clear that one set of aligned
measures is the minimum requirement,
and that programs may submit
additional performance measures that
are aligned or are not aligned.
Flexibility To Change Performance
Measures Over the Course of the Grant
Two commenters suggested that
programs need flexibility to change
measures in year two or three of a threeyear grant to react to changing needs
and unforeseen challenges. The
proposed rule envisaged that programs
would submit performance measures in
the first year of their three-year grant on
which they would report over the threeyear period of the grant. The goal was
to decrease the burden on our grantees
to have to submit new performance
measures each year, and to increase the
value of the reporting over a longer
period of time. That said, section
2522.640 of the proposed rule and the
final rule specifically authorizes
programs to change their performance
measures, with Corporation or State
commission approval as appropriate.
Since this flexibility is already in the
rule, the Corporation sees no need to
change or add language to address this
issue.
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Grantees’ Responsibilities in Meeting
Performance Measures (§ 2522.630)
The final rule is more specific about
what a corrective action plan to address
performance deficiencies must include,
and requires grantees to submit such a
plan within 30 days of a determination
that the grantee is not on track to
meeting the performance measures.
Performance Measures and Funding
Decisions
One commenter was concerned that
the selection criteria in the proposed
rule include a program’s progress
towards meeting performance goals in
the decision of whether or not to fund
the program. This commenter believed
that this would result in programs
lowering their performance goals to
ensure that they meet them. The
Corporation does not believe that this is
a concern. Beyond any national
performance measures that the
Corporation may require of programs,
the Corporation, or the State
commission, will approve all other
performance measures and, thus, will
have the opportunity to ensure that each
program is selecting ambitious
performance measures upon which to
report. In addition, the benefits the
program anticipates and captures
through performance targets are also
significant elements of the selection
criteria.
Evaluation
Section 131(d)(1) of the Act specifies
that an applicant must arrange for an
independent evaluation of an
AmeriCorps national service program
receiving assistance under Subtitle C of
Title I of the Act, unless the applicant
obtains Corporation approval to conduct
an internal evaluation. The statute also
authorizes the Corporation to make
alternative evaluation requirements
‘‘based upon the amount of assistance’’
a grantee receives.
In light of these provisions, in the
proposed rule the Corporation proposed
revising its current requirement that all
grantees arrange for independent
evaluations, unless the Corporation
approves an internal evaluation. The
proposed rule required that only the
Corporation’s largest grantees—those
receiving an average annual program
grant of $500,000 or more—conduct an
independent evaluation that covers a
period of at least 5 years, and submit the
evaluation results with their application
for recompete funding. Our rationale for
this approach was that it is burdensome
to require independent evaluation for
smaller grants, and, for larger grants, we
wanted to give a grantee enough time to
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39589
complete a rigorous evaluation, and
ensure that the Corporation receives it
in time to consider with a grantee’s
second recompete application for
funding. Under the proposed rule, the
Corporation would not consider for
funding any recompete application from
a program receiving an average annual
program grant of $500,000 or more that
did not include the required evaluation
summary, or results, as applicable.
One commenter supported the
proposed rule’s approach to evaluation.
Four commenters, however, opposed
outside evaluations, because they use
up resources that should be used in
support of the program’s service
activities. One stated that outside
evaluations are not helpful and usually
lead to more questions than answers.
Another noted that most programs lack
the resources to develop the level of
evaluation proposed and that it is
difficult to pursue funding for
evaluation and research.
While sensitive to the concerns of
these commenters, the Corporation
strongly believes in the value of
independent evaluation, particularly for
our largest grantees. Furthermore, the
Corporation does not believe it
unreasonable to require an independent
evaluation from a grantee that has
received over 2.5 million dollars from
the Corporation, and is applying for
additional funds, by the time it submits
the evaluation results to us.
The Corporation also received many
comments suggesting that the
Corporation develop basic guidelines for
assessing evaluations in the grant
selection process, or that the
Corporation nationalize or standardize
the aggregated data to make it more
useful. Several commenters suggested
that the Corporation develop national
guidelines on evaluation or
standardized evaluation tools that
programs could use for internal
evaluations rather than paying for an
external evaluator. Several commenters
suggested that the Corporation develop
national evaluation standards for all
programs, while others suggested
standardized evaluation criteria. One
commenter recommended that the
Corporation design flexible
questionnaires on the data it seeks in
evaluations, which would save large
programs thousands of dollars through
standardization.
Two State commissions
recommended that the Corporation
establish a national evaluation agenda
with two components: (1) Competitive
funds for commissions to engage in
statewide AmeriCorps program
evaluations, and (2) a Corporationconducted national evaluation to assess
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the impact and effectiveness of program
models nationally. Another State
commission suggested that the
Corporation work with State
commissions to perform statewide
evaluations. This commenter agreed that
evaluations are important for all
programs, big and small, and therefore
recommended requiring evaluations for
all programs. Another commenter
recommended funding ‘‘statewide and
or national evaluations that are both
cost-effective and provide potentially
broader analysis and impact data.’’
Another commenter recommended that
the Corporation either provide programs
the tools to conduct internal
evaluations, or provide funding to offset
the cost of external evaluations.
The Corporation intends to work
cooperatively with grantees and other
interested parties with a goal of seeking
input on one or more strategies like
those suggested in the comments,
including, potentially, national
Corporation-administered evaluations,
statewide evaluations, and the
development of evaluation tools and
guidelines for grantees to use in
performing internal evaluations. The
Corporation will offer sufficient
opportunity to grantees and other
interested parties to provide input. In
the meantime, however, the Corporation
is maintaining, in this final rule, the
requirement from the proposed rule that
any grantee that receives an average
annual grant of $500,000 or more must
arrange for an independent evaluation.
In anticipation of other potential
evaluation strategies, however, the final
rule also includes language from the
NCSA that requires grantees to
cooperate with requests for information
for any national evaluation that the
Corporation or one of its providers may
conduct. The Corporation will consider
relieving grantees of the requirement to
conduct an evaluation if a grantee
participates in national or statewide
evaluations, or uses the evaluation tools
the Corporation develops.
One commenter requested
clarification on whether the threshold
for independent evaluation is the total
program budget or the Corporation share
only. As stated above, the independent
evaluation requirement applies to any
grantee that receives an average annual
grant of $500,000 or more—in this
specific context, the term ‘‘grant’’ refers
to the amount the Corporation provides
in grant funds, not the total program
revenues from other sources. The final
rule refers to the ‘‘Corporation’’ program
grant to make this point clear.
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Independent Evaluation (§ 2522.700)
In defining evaluation in the proposed
rule, the Corporation referred to
evaluation as using scientifically-based
research methods to assess the
effectiveness of programs by comparing
the observed program outcomes with
what would have happened in the
absence of the program. The proposed
rule intended to include random
assignment as one example of a
scientifically-based research method,
but erroneously made it appear like
random assignment was the only type of
method the Corporation would allow.
The Corporation received many
comments opposing the requirement of
random assignment evaluations, and
other comments requesting that we
more clearly define ‘‘scientificallybased’’ to include other methods of
evaluation other than random
assignment. To avoid any confusion, the
Corporation has amended the final rule
to remove the reference to random
assignment methods. This should make
clear that a program may use any
appropriate scientifically-based
evaluation method it chooses.
Scientifically-based research can be
broadly defined as using appropriate
research design, methods, and
techniques to ensure that the methods
used can reliably address the research
questions and support the conclusions.
Scientifically based research describes
research that involves the application of
rigorous, systematic, and objective
procedures to obtain reliable and valid
knowledge relevant to activities and
programs.
When organizations are attempting to
determine whether there is a causal
relationship between their programs and
observed outcomes, or whether a
program caused a change for
participants, they will need to employ
an experimental or quasi-experimental
design or demonstrate how their study
design will allow them to determine
causality. One of the key characteristics
of experimental designs is random
assignment of persons or entities to
treatment (or experimental) and control
(or comparison) conditions. For
example, participants in the treatment
condition may receive benefits or
services, while participants in the
control condition do not. This random
assignment of persons to conditions
should equalize preexisting differences
between the two groups so that
differences observed between the groups
can be attributed to the program. If
random assignment is not possible, then
quasi-experimental designs can be
employed. These designs rely on
identifying appropriate comparison
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groups, and may even take
measurements at two or more points in
time or include multiple comparisons in
order to rule out or reduce threats to
validity or alternative explanations for
differences between the experimental
and comparison groups.
Making comparisons to similar
individuals not receiving services,
whether through an experimental or
quasi-experimental design, is an
important part of ensuring the observed
program effects are attributable to the
programs and not to other factors.
Comparison groups can be identified in
several ways, including direct methods
such as collecting information for
similar individuals and communities
not being served, and indirect methods
such as using local, regional or national
data or information available from
federal, State and local agencies and
private and nonprofit organizations. In
the absence of comparison data,
programs are limited in their capacity to
demonstrate the added value of their
program for the individuals and
communities they serve.
For example, a tutoring program that
is not able to serve all of the eligible
students due to excess demand may be
able to randomly select students to
participate in the program. If random
assignment is not feasible, the program
may use a quasi-experimental approach
to compare the achievement or literacy
scores of the students served with those
of similar students in nearby
communities and schools. Alternatively,
the program may compare students to
benchmark information reported by
local schools, school districts, or even
State and national data on education
achievement. A program may be able to
successfully assess program results by
comparing the achievement of the
students they serve at multiple points in
time (baseline, during the program, at
the end of the program) against an
appropriate comparison benchmarks.
While not as rigorous as a random
assignment design, quasi-experimental
comparison group designs can provide
reliable evidence of program
effectiveness.
One commenter opposed the
requirement that programs be evaluated
in depth against a similar population
that does not receive the benefits or
services of the AmeriCorps program.
This commenter believed that such a
group is hard to find, and that data
gathering would be difficult and errorprone. The Corporation disagrees. As
discussed above, making comparisons to
similar individuals not receiving
services is an important part of ensuring
the observed program effects are
attributable to the programs and not to
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other factors. Many programs attempt to
create changes in individuals and
communities, but can not provide
evidence that any observed changes are
due to the program. For example,
because children learn and develop over
time, youth development and education
programs need to be able to measure the
effects of their programs and compare
them against the learning and
development that occurs in other
children. Comparisons can be identified
in several ways, including direct
methods such as collecting information
from similar individuals or
communities not being served, and
indirect methods such as using local,
regional or national data and
information available from federal, State
and local agencies, and private and
nonprofit organizations. In the absence
of comparison data, programs are
limited in their ability to demonstrate
the added value of their program for the
individuals and communities they
serve.
Evaluation Requirements for Smaller
Grantees
In the proposed rule, the Corporation
encouraged (but did not require)
grantees who receive under $500,000 in
grant funds per year, to perform
independent evaluations and indicated
that the Corporation would consider the
results of these evaluations when
making decisions on an organization’s
application for funds. Several
commenters found the term
‘‘encourage’’ ambiguous and felt it
created a de facto requirement. At least
one commenter suggested that the
Corporation remove that requirement.
One commenter suggested that the rule
either (1) require only that programs
‘‘show improvement’’, but not
necessarily a scientifically-based
evaluation, or (2) permit programs to
submit information for statewide
evaluation.
The Corporation continues to believe
that independent evaluations are
intrinsically stronger and, often, more
useful, than internal evaluations. That
being said, the Corporation has removed
the language encouraging smaller
grantees to arrange for independent
evaluations. The Corporation does
believe that all effective programs need
to continuously improve their results for
both participants and the people they
serve, and therefore expects all grantees
to perform some type of evaluation as
part of their programs, in accordance
with the NCSA. Consequently, the
Corporation is including in the final
rule the statutory minimum requirement
of an internal evaluation for smaller
grantees.
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Five-Year Timetable for Evaluations
At least one commenter found the
proposed rule unclear on when a
grantee will be expected to produce an
evaluation. The Corporation is removing
the requirement that an evaluation be
conducted every 5 years. Rather, the
Corporation will require each grantee to
submit a summary of its evaluation plan
with its first recompete application
following the effective date of this
provision, and the full evaluation
results with its second recompete
application for funding. For example, if
a current grantee recompetes for funding
in 2006, it will be required to submit
with its application a summary of its
evaluation plan or progress to date. If
the grantee again recompetes for
funding in 2009, it will have to submit
the completed evaluation with its
recompete application at that time. The
evaluation must cover a minimum of
one year, but may cover longer periods.
This applies for both internal and
independent evaluations.
Consideration of Evaluations in
Selection Process
The proposed rule stated that the
Corporation will consider in the grant
selection process the results of any
evaluation a grantee submits. One
commenter strongly recommended that
external professional evaluators review
the evaluations that grantees submit,
particularly if the evaluations will have
a major impact on future funding. The
Corporation agrees that this is a
promising idea and will consider it in
the future, funding permitting. The
Corporation will use an evaluation that
a grantee submits to inform our
consideration of the selection criteria.
The evaluation itself will not receive
any score in the selection process.
Costs of Evaluation
Two commenters asserted that the
independent evaluation requirement for
large programs is an unfunded Federal
mandate, through which the
Corporation is forcing a program to
decide how to pay for program
evaluation for Corporation program
operations. Several commenters noted
that the independent evaluation
requirement for large programs is an
undue burden on those programs as
compared with smaller programs. These
commenters also noted that the
requirement would increase the costs
and Corporation cost per MSY for larger
programs. Another commenter noted
that, while evaluation is important, it is
costly and will likely lead to programs
cutting costs on other quality elements
of the program. This commenter,
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therefore, recommended that the
Corporation bear the costs of
evaluations beyond each program’s
budget, and that this cost not be counted
in the total Corporation cost per MSY or
operational costs of the program.
Several commenters recommended that
the Corporation pay for evaluation costs,
or at the very least a percentage of
evaluation costs for each program. As
discussed earlier, the Corporation does
not believe it appropriate to exclude
evaluation costs from a program’s
Corporation cost per MSY. The
Corporation will, however, consider the
impact of evaluation costs on a
program’s Corporation cost per MSY in
the context of applying the costeffectiveness criteria in the grant
selection process.
H. Qualifications for Members Serving
as Reading Tutors and Requirements for
Tutoring Programs (§§ 2522.900
Through 2522.950)
E.O. 13331 directs that school-based
national and community service
programs ‘‘should employ tutors who
meet required paraprofessional
qualifications, and use such practices
and methodologies as are required for
supplemental educational services.’’
The Corporation believes strongly that it
is important to maintain consistency
with the balance struck by the No Child
Left Behind Act (NCLBA), which, on the
one hand ensures that children who
need tutoring are receiving the best
possible support, and, on the other hand
ensures AmeriCorps’ continued support
for our education system.
We therefore also strongly believe that
these rules should not create burdens on
AmeriCorps members and programs that
are not already imposed by the NCLBA.
Thousands of AmeriCorps members are
providing invaluable support to
children through a range of activities
that the NCLBA has specifically
exempted from coverage. To be
consistent with the NCLBA, in setting
tutor qualifications in the proposed rule,
we narrowly defined ‘‘tutor’’ to include
only individuals whose primary goal is
to increase academic achievement in
core subjects through planned,
consistent, one-to-one or small-group
activities and sessions, that build on
students’ academic strengths and target
students’ academic needs. We did not
intend to establish qualifications for
AmeriCorps members who engage in
other school-related support activities,
such as homework help provided as part
of a safe-place-after-school program.
The proposed rule also confirmed that
the qualification requirements for tutors
and other paraprofessionals under the
NCLBA apply to tutors who are
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employees of the Local Education
Agency (LEA) or school, as determined
by the State, but do not apply to
AmeriCorps members serving as tutors
under the sponsorship of an
organization other than the school
district.
Under the NCLBA, paraprofessionals
(including tutors) who provide
instructional support in Title I schools
must have a secondary school diploma
or its equivalent and must have: (a)
Completed two years of study at an
institution of higher education; or (b)
Obtained an associate’s or higher
degree; or (c) Met a rigorous standard of
quality and be able to demonstrate the
appropriate and relevant job skills
through a formal State or local academic
assessment. For a member serving as a
tutor, other than one employed by the
LEA or school, the proposed rule
required either that the member has a
high school diploma (or its equivalent),
or that the member passes a proficiency
test that the grantee has determined
effective in ensuring that the member
has the necessary skills to serve as a
tutor. A member serving as a tutor
would also have to successfully
complete any pre- and in-service
specialized training required by the
program.
In addition, the proposed rule
required tutoring programs to show
competency to provide tutoring service
through their recruitment, specialized
training, performance measures, and
supervision.
AmeriCorps Members as ‘‘employees’’
and Application of the NCLBA
Many commenters expressed concern
over the characterization of AmeriCorps
members as ‘‘employees’’ of, or ‘‘hired
by’’ the LEA or school, particularly
given that the NCSA specifically states
that members are not to be considered
employees of the programs with which
they serve. Some of the commenters
were concerned that identifying
members in this way could bring them
under the auspices of other employment
and labor laws such as those dealing
with minimum wage.
The Corporation used this
terminology because that is how the
U.S. Department of Education has
characterized the distinction between
those AmeriCorps members who will be
covered by the NCLBA and those who
will not. In its regulations implementing
the NCLBA, the U.S. Department of
Education defines a covered
paraprofessional as any paraprofessional
‘‘hired by the LEA’’. 34 CFR
200.58(a)(1)). In subsequent guidance on
implementation of its rules, the
Department of Education specifically
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addressed the application of NCLBA
paraprofessional requirements to
AmeriCorps members working in
schools as follows:
The National and Community Service Act
states that AmeriCorps volunteers are not
considered employees of the entities where
they are placed (42 U.S.C. 12511 (17B)).
Unless AmeriCorps volunteers are
considered employees of a school district
under State law, the paraprofessional
requirements in section 1119 (see items B–1
and B–5) do not apply. U.S. Department of
Education, Title I Paraprofessionals, NonRegulatory Guidance, March 1, 2004.
Whether an AmeriCorps member is
considered an employee under State law
is a State law question, and not a
Corporation determination. Over the
years, there have been occasions when
a particular State considered
AmeriCorps members serving in that
State to be employees for some
purposes, such as minimum wage and
overtime, or unemployment insurance.
To the Corporation’s knowledge,
however, no State currently considers
AmeriCorps members serving in schools
to be employees for purposes of the
NCLBA. In light of the confusion caused
by the proposed rule, however, the
Corporation is amending the language in
this final rule to make clear that only
those members considered to be hired
by the LEA or school under State law
must comply with NCLBA
paraprofessional requirements.
Several commenters interpreted the
proposed rule as extending NCLBA
coverage and its requirements to
AmeriCorps members who are not
currently covered under that law. This
was not the Corporation’s intent. The
Corporation’s intent was simply to
reiterate the current U.S. Department of
Education rules on which AmeriCorps
members may be subject to NCLBA. The
Corporation is not imposing NCLBA
requirements beyond what the U.S.
Department of Education already
requires.
Grantees should note that the NCLBA
paraprofessional requirements apply to
any individual who meets the definition
of paraprofessional, including tutors.
Again, the Corporation would expect
grantees to determine whether its
AmeriCorps members are covered
paraprofessionals under the NCLBA
and, therefore, subject to NCLBA
requirements. If they are not covered
paraprofessionals subject to NCLBA
requirements, the grantee must then
determine whether they are tutors, as
defined in this rule, and therefore
subject to the qualifications established
by this rule.
One commenter indicated that at least
six States have opted out of the NCLBA
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and sixteen more have pending
legislation to opt out. As stated above,
this rule will not impose NCLBA
requirements where they are not already
applicable. States that have opted out of
NCLBA requirements by choosing not to
receive Title I Federal education funds
will have only to ensure that any
members serving as tutors, as defined in
this regulation, meet the qualifications
established by this regulation—i.e. a
high-school diploma or its equivalent,
or successful completion of a
proficiency test—and provide training
and supervision as required in this
regulation.
Definition of ‘‘Tutoring’’
As discussed above, the proposed rule
narrowly defined ‘‘tutor’’ to include
only individuals whose primary goal is
to increase academic achievement in
reading or other core subjects through
planned, consistent, one-to-one or
small-group activities and sessions, that
build on students’ academic strengths
and target students’ academic needs.
One commenter recommended that
the Corporation clarify whether the
definition of tutoring applies only in the
K–12 years, or whether it would apply
to a member ‘‘tutoring’’ pre-school
children. Another commenter sought
clarification on whether tutoring, as
defined, in this regulation included
adult-learning. The Corporation’s intent,
in this regulation, was to impose
requirements on tutoring that occurs
during the K–12 school years, as a
parallel requirement to the NCLBA. We
did not intend to extend the tutor
qualification requirements to activities
involving pre-kindergarten students or
adults. Consequently, the Corporation
has amended the regulation to make
clear that tutoring in this regulation
relates only to children in grades
kindergarten through twelfth.
AmeriCorps Tutor Qualifications
As discussed above, for a member
serving as a tutor, other than one
employed by the LEA or school as
determined by State law, the proposed
rule required either that the member has
a high school diploma (or its
equivalent), or that the member pass a
proficiency test that the grantee has
determined effective in ensuring that
the member has the necessary skills to
serve as a tutor. A member serving as a
tutor would also have to successfully
complete any pre- and in-service
specialized training required by the
program and screening requirements.
Two commenters found the proposed
rules for tutor qualifications acceptable,
and one of the two thought the
increased qualifications would be
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beneficial. One commenter commended
the proposed rule because it established
necessary standards and provided the
flexibility for programs to test
proficiencies appropriate for the local
population and educational priorities.
One commenter supported the rule as
applied to non-profits and noted its
importance in that it resolves issues
raised by the NCLBA. On the other
hand, one commenter criticized the rule
as ‘‘unnecessary and burdensome,’’ and
unbeneficial for innovative programs
designed to meet community needs.
Fifteen commenters expressed concern
that they would not be able to recruit
sufficient numbers of tutors who qualify
under the proposed rule. Many
commenters were in favor of some
training and education requirements for
tutors, but disagreed with the standards
in the proposed rule. Some commenters
believed that their tutoring programs are
already successful with the tutors they
currently recruit, train, test, and
supervise, and therefore did not see the
need for additional Corporation
requirements. One commenter was
concerned that this rule would lead to
different member qualifications for
tutors ‘‘hired by LEAs’’ versus those
‘‘hired by’’ non-profits. As discussed
above, under current law and in the
absence of an AmeriCorps regulation,
there are already different standards for
tutors considered by State law to be
‘‘hired by the LEAs’’ than other
AmeriCorps tutors, as only those ‘‘hired
by the LEAs’’ are subject to the
paraprofessional requirements under the
NCLBA. The Corporation is merely
imposing some additional limited
qualifications requirements on the
group of tutors not covered by the
NCLBA.
One commenter was also concerned
about having different requirements for
tutors depending upon the State law
where the members were serving, and
the impact that would have on multiState programs. In the Corporation’s
view, this is no different than any issue
that might vary for multi-State programs
depending upon State law. For example,
some States cover AmeriCorps members
under unemployment insurance laws,
while others do not; some States cover
members under workers’ compensation,
while others do not. Any multi-State
program with members serving in States
covered by different laws has to deal
with members potentially being treated
one way in one State and another way
in a different State. The application of
the NCLBA on a State-by-State basis is
no different.
One commenter expressed concern
over the increased training costs
necessary to meet the new training
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requirements for members serving as
tutors. The Corporation is aware that
programs will need assistance in
ensuring that tutors receive appropriate
training and this issue will be part of
our training and technical assistance
strategy in the coming year.
Four commenters recommended that
the current standards for tutors be
maintained. One of these commenters
supported requiring the high-school
diploma or its equivalent, and
successful completion of pre- and inservice training, but no proficiency test.
One commenter recommended revising
the rule to permit ‘‘qualified
AmeriCorps members [to serve] as tutors
without the requirement for specific
levels of education or expensive
competency tests.’’ In fact, the vast
majority of AmeriCorps members have a
high-school diploma or its equivalent
before they begin serving. So no
proficiency test will be necessary for
most AmeriCorps members serving as
tutors. The Corporation did not,
however, want to limit the ability to
tutor only to those with a high-school
diploma or its equivalent, as we
understand that some programs have
members serving who do not have a
high-school diploma or its equivalent
but who, nonetheless, are competent
tutors. Our intent was to ensure a
minimum standard that all tutors must
meet, while leaving flexibility to
programs to engage as tutors individuals
who would not qualify under a ‘‘highschool diploma or its equivalent’’
standard. We believe that the
proficiency test accomplishes the goal of
establishing this minimum requirement
for the small number of members who
may not have a high-school diploma or
its equivalent. (We note that the
equivalent of a high-school diploma
includes more than just a GED, and we
have included a technical amendment
to the final rule in § 2510.20 to reflect
the definition of recognized equivalent
of a high-school diploma.)
One commenter questioned which
proficiency test programs should use to
qualify tutors and who would approve
the test. The commenter stated that local
LEAs and schools do not currently have
an appropriate test for measuring
proficiency and that the ‘‘on-line
ParaPro test’’ can be very challenging.
The Corporation does not expect
programs to necessarily use the test that
paraprofessionals must pass to qualify
under the NLCBA. The program may
use the test that it deems appropriate to
test the proficiency of its members, be
it in math or English, or whatever core
subjects the member may tutor. To
select skill exams or tests, programs
should consider seeking input from
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professionals in their local area. State
Departments of Education, Adult Basic
Education, or GED programs can
provide names and sources of tests
commonly used for basic subjects or
skills at the level the program requires.
Potential proficiency tests might also
include tests used by the U.S.
Department of Education to enroll
students who do not otherwise have a
high-school diploma or its equivalent on
what is known as an ‘‘ability-to-benefit
basis.’’ The U.S. Department of
Education periodically publishes the list
of these approved tests and acceptable
passing scores in the Federal Register.
You may read the most recent list at 69
FR 26087 (May 11, 2004). We reiterate
that a program is not required to use
these tests. The program must determine
an appropriate proficiency test given the
focus of the program, the members
recruited, and the population receiving
the tutoring. The qualifications
requirements for tutors in the final rule
mirror the language of the proposed
rule.
Tutor Program Requirements
(§ 2522.940)
The proposed rule required tutoring
programs to show competency to
provide tutoring service through their
recruitment, specialized training,
performance measures, and supervision.
One commenter commended the
program requirements because they
establish necessary standards and
provide programs with implementation
flexibility. This provision has not
changed in the final rule.
I. Non-Displacement of Volunteers
(§ 2540.100)
The Corporation’s focus has
consistently been, pursuant to the Act,
to fund programs meeting needs that
would otherwise go unmet in their
communities. The non-displacement
rules are one way to ensure that
programs are meeting unmet needs,
rather than needs that employees or
volunteers are meeting already. In
addition, E.O. 13331 directed national
and community service programs to
avoid or eliminate any practice that
displaces volunteers. Consequently, the
proposed rule stated that the service of
an AmeriCorps member must
complement, and may not displace, the
service of other volunteers in the
community, including partial
displacement such as reducing a
volunteer’s hours.
One commenter supported the new
provision on volunteer displacement.
Three commenters requested that the
Corporation clarify in the final rule its
definition of volunteer displacement,
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and how the Corporation and grantees
will monitor volunteer displacement.
Six other commenters did not support
the provision and thought it may have
unintended consequences. One of the
reasons proffered was that programs
often use AmeriCorps members to
transition from an administrative design
that is no longer able to meet
community demands for service. In one
commenter’s State, AmeriCorps
members put ‘‘legs under recruitment
and outreach plans that were formerly
the domain of one or two community
volunteers. The result is more
volunteers for the organization.’’ One
commission noted that the proposed
rule language will focus attention on
whether a particular volunteer function
is assigned to an AmeriCorps member,
rather than whether the AmeriCorps
member’s presence and work have
resulted in a stronger community
volunteer program. This commenter
suggested that the Corporation focus the
prohibition on the extent to which an
AmeriCorps member’s participation in a
program results in ‘‘either fewer
community volunteers or fewer hours of
volunteer service by the organization’s
community volunteers.’’ Five other
commenters, including two
commissions, made similar comments.
The Corporation does not believe that
a focus on the number of volunteers or
volunteer hours is appropriate,
primarily because of the burden it
would place on organizations to track
those numbers. In fact, the final rule
omits the reference to volunteer hours,
but maintains the rest of the language
from the proposed rule.
The Corporation wants our programs
to build on, rather than substitute for,
service that is already occurring in the
non-profit world. We do not want
programs to use AmeriCorps members
for activities that a community
volunteer is already performing.
However, we will consider whether in
bringing on AmeriCorps members, the
grantee is launching new sites or new
service activities, expanding the role of
community volunteers in the program,
improving the caliber or diversity of
members enrolled, or promoting other
strategies to expand the program or
enhance its impact in the community.
Monitoring and enforcement of this
prohibition will occur as they currently
do with respect to displacement of
employees: The Corporation and
grantees will be alert to the issues of
displacement of volunteers in the
selection process; the Corporation will
include non-displacement of volunteers
as one of the assurances grantees will
make when accepting a grant;
Corporation program officers will ask a
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program to demonstrate compliance if
they have concerns; and, if a community
volunteer raises displacement as an
issue, the volunteer will have the option
of filing a grievance at the program
level, and the commission or the
Corporation, as appropriate, will
investigate any allegation of
displacement as a compliance matter.
J. Transitional Entities (§§ 2550.10
Through 2550.80)
The National Service Trust Act of
1993 and the Corporation’s regulations,
originally issued in 1994, contemplated
the existence of transitional entities, in
addition to State commissions and
alternative administrative entities, as
State bodies that could be eligible to
receive Corporation funding and
administer national service programs on
an interim basis. The provisions relating
to transitional entities, however,
sunsetted 27 months after the passage of
the Act, or December 1995. The
Corporation received no comments on
this issue. The final rule is identical to
the proposed rule and amends the
regulations to remove any obsolete
references to transitional entities.
K. State Commissions Directly
Operating Programs (§ 2550.80(j))
Under the NCSA, a State commission
or alternative administrative entity may
not directly carry out any national
service program that receives assistance
under subtitle C of title I of the NCSA.
42 U.S.C. 12638(f). Currently, however,
45 CFR 2550.80 goes further than the
statute by prohibiting State
commissions from directly operating
any national service program receiving
assistance, in any form, from the
Corporation. This means that, currently,
a State commission is prohibited from
operating not only a subtitle C
AmeriCorps program, but also any
subtitle H, Learn and Serve (except as
permitted in the Learn and Serve
legislation), AmeriCorps VISTA, or
Senior Corps program. In the proposed
rule, the Corporation proposed relaxing
the restriction by amending the
regulations to conform to the Act and
give commissions more flexibility to
directly operate non-subtitle C
programs.
Six commenters were in favor of this
provision, while fifty-one commenters
opposed it. Most of the commenters
opposing the provision represented
Retired and Senior Volunteer Program
and Foster Grandparent Program
grantees or supporters, and specifically
objected to State commissions directly
operating Senior Corps programs. The
Corporation was not persuaded by most
of the reasons the commenters proffered
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for why State commissions should not
be allowed to directly operate Senior
Corps programs. However, one of their
main oppositions to this provision was
that it would eliminate one of the
greatest strengths of the National Senior
Service Corps programs—the local
governance and local decision-making
by local community-based sponsors
regarding program focus and activities.
One commenter suggested that,
because of the significance of this issue,
this proposed change should be
addressed in reauthorization, rather
than in regulation. The Corporation,
however, has proposed going no further
than the current statutory language
allows and, thus, does not believe
statutory language is necessary to permit
State commissions greater involvement
in program delivery.
Nonetheless, the Corporation
appreciates the concerns that the
commenters expressed over the local
nature of Senior Corps programs and the
local needs they address. Furthermore,
the Corporation notes that its current
policy and regulations prohibit a Senior
Corps grantee from sub-granting,
delegating, or contracting project
management responsibilities to any
other entity. 45 CFR 2551.22, 2552.22,
and 2553.22. While this language does
not, in and of itself, prohibit a State
commission from becoming a Senior
Corps project sponsor, it would require
a commission, like any other sponsor, to
handle all project management
responsibilities itself. The Corporation
does not believe that most State
commissions are in a position to operate
a Senior Corps program without the
ability to delegate or subgrant, and
agrees with the commenters that local
organizations are in the best position to
identify local needs and operate the
programs.
Furthermore, the Corporation
received no indication that State
commissions are in any way eager to
operate Senior Corps programs—their
interest appears to lie more with
AmeriCorps VISTA, Special Volunteer
Programs, and other initiatives that the
Corporation might fund with subtitle H
funds. Note that, under the NCSA, only
an LEA may apply for school-based
Learn and Serve funds.
Consequently, the Corporation is
changing the proposed language in
section 2550.80(j) to allow State
commissions to directly operate any
national service program except for
those that receive assistance under
subtitle C of title I of the NCSA
(AmeriCorps), and Title II of the
Domestic Volunteer Service Act of 1973
(Senior Corps).
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VII. Effective Dates
The final rule will take effect
September 6, 2005. However, the
following sections will become
operational for the 2006 program year:
§§ 2522.400 through 2522.475—
Selection Criteria and Process
§§ 2522.500 through 2522.650—
Performance Measures
§§ 2522.700 through 2522.740—
Evaluation Requirements
To the extent that certain sections of
the final rule restate current Corporation
policy, current policy will remain in
effect until superseded by the
regulation.
VIII. Non-Regulatory Issues
A. Streamlining Grantee Requirements
and Aligning Them With Grantee Needs
In the Notice of Proposed
Rulemaking, the Corporation indicated
its intent to streamline our grant
application and grant-making processes,
and streamline and align with grantee
needs our reporting and other
requirements. In particular, we
discussed revising the timing of the
grant cycle to better accommodate
programs with start dates in the fall;
streamlining continuation grant
application and reporting requirements;
and clarifying and streamlining our
guidance to the field.
Several commenters appreciated the
Corporation’s efforts to make the grant
cycles and reporting requirements
flexible based on the needs of grantees,
to streamline grant applications and
guidelines, to decrease the time it takes
to make a grant award, and to cut
unnecessary paperwork out of the grantmaking process. The Corporation is
continuing its efforts to better align the
grant-making timetable with grantees’
needs, and to streamline application
and reporting requirements.
Streamlining Continuation Grants and
Reporting Requirements
Section 130 of the National and
Community Service Act of 1990
authorizes the Corporation to determine
the timing and content of applications
for AmeriCorps funding. In the NPRM,
the Corporation signaled its intent to
change our continuation application
requirements to minimize the burden on
grantees, while ensuring that the
Corporation receives the information it
needs to make fiscally responsible
continuation awards. Our goal is to
streamline the application and review
processes for continuations, as well as
to give grantees more predictability over
the three-year grant cycle.
In our discussion of the streamlining
we envisioned in this area, the
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Corporation stated that we intended to
work with State commissions on a
schedule that accommodates the
different start dates of programs within
a State’s portfolio. We also stated that,
because of the uncertainties of annual
appropriations, we were reviewing how
this process would affect continuation
requests that include an expansion
request (including both requests for
more program funds and requests for
more member MSYs), and may establish
an alternate timetable for considering
those requests.
Two commenters expressed concern
about the impact of approving grants on
a rolling basis and tying application and
reporting requirements to program start
dates. These commenters indicated that
States have AmeriCorps programs under
a single grant code for specific funding
categories—formula, competitive, and
EAP. Rolling grant approvals based on
program start dates may necessitate a
different grant code for each program
and would force multiple grant codes to
be open and managed for longer
periods, according to these commenters.
The Corporation does not intend to
make separate grants for each program
in a State commission’s portfolio.
Rather, the Corporation intends that a
State commission’s grant is awarded in
time for the program in the State’s
portfolio with the earliest start date to
begin operations.
One commenter discussed the
possibility of establishing an alternative
timetable for those programs that wish
to include an expansion request with
their continuation application. This
commenter indicated an understanding
of how uncertain the annual
appropriations process is, but believed
that a program should not potentially
lose funding because there was no
increase in appropriations. A
continuation program, according to this
commenter, should at least be
guaranteed level funding, assuming that
it meets all the requirements and
demonstrates that it is a high-quality
program. While the Corporation
typically awards three-year grants, the
grants are incrementally funded on an
annual basis, and consequently
contingent on the availability of
appropriations. For continuation
programs that are compliant and
meeting performance measures, the
Corporation makes every effort to ensure
level operations, but we cannot
guarantee funding across the three years
of a grant. The Corporation is
continuing to identify ways to
streamline this process and will provide
further guidance later this year.
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B. Maximizing a Grantee’s Ability To
Meet Objectives and Achieve Strong
Outcomes
Re-Fill Rule
Since 2003, the Corporation
prohibited programs from re-filling a
slot when a member left without
completing a term of service. We
received 42 comments urging the
Corporation to allow programs to refill
vacant slots. On January 12, 2005, the
Corporation implemented a change in
the refill rule, on a pilot basis, to allow
limited re-fill of positions. The
Corporation will monitor and evaluate
this pilot refill rule, and determine
whether and to what extent to continue
the refill rule in the future.
C. Improving the AmeriCorps Member
Experience
During the preliminary input process,
the Corporation received input from
current and former AmeriCorps
members asking us to focus on their
experience and the resources available
to them. The Corporation has a strong
interest in the AmeriCorps member
experience and intends to further
explore ways to improve it.
In particular, as we indicated in the
Notice of Proposed Rulemaking, the
Corporation intends to explore creating
a member satisfaction survey through
which AmeriCorps members would be
able to evaluate their programs and their
AmeriCorps experience. One
commenter supported the creation of a
member satisfaction survey to gauge
members’ experience with both their
program and AmeriCorps, as long as it
is not a requirement that programs use
the survey that the Corporation creates.
The Corporation is in the process of
creating a national survey for
AmeriCorps members and we intend to
post the results on our Web site when
they are available, for prospective
members to consider. Although the
survey will be open to all members, the
Corporation has not yet determined
whether programs will be required to
ensure all members participate.
IX. Rulemaking Analyses and Notices
Executive Order 12866
The Corporation has determined that
this rule, while a significant regulatory
action, is not an ‘‘economically
significant’’ rule within the meaning of
E.O. 12866 because it is not likely to
result in an annual effect on the
economy of $100 million or more, or an
adverse and material effect on a sector
of the economy, productivity,
competition, jobs, the environment,
public health or safety, or State, local,
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or tribal government or communities.
This is, however, a significant rule, and
therefore has been reviewed by OMB.
The rule requires all grantees and
subgrantees of the Corporation to
increase, based on a predictable and
incremental schedule, the grantee share
of program costs. After the initial threeyear grant period, a Corporation-funded
program in its fourth year of operation
must provide at least 26 percent of their
overall program budget in matching
money. During years five through ten of
Corporation assistance, the program’s
required matching percentage increases
gradually to 50 percent. Programs on the
alternative match scale will begin
increasing their share of match to 29
percent in the seventh year of operation,
increasing gradually to 35 percent in the
tenth year and beyond.
The initial impact of this change will
be small. During the 2000–2002 grant
period—the most recent three-year
period where we have complete data on
program budgets—about 20.2 percent of
all AmeriCorps grantees and
subgrantees had match percentages less
than 26 percent. About 13 percent of
these low-matching programs will not
need to match at 26 percent
immediately, because they would
qualify for the lower match rate
available for rural and low-income
programs.
Among the rest of the low-matching
programs, the average amount of
matching money needed to reach the 26
percent level is about $18,900 per
program, or about $2,274,700 per year
across all AmeriCorps programs. The
median program would require about
$13,700 in additional matching money
to reach the 26 percent level. The total
annual project amount needed would
increase somewhat—to about
$2,806,500 per year—if all programs
matched at the 26 percent level. All
told, this analysis indicates that the
programs that would be affected would
require very little additional money to
achieve a 26 percent match, and that the
overall impact of the rule on
Corporation programs falls well short of
$100 million annually.
Regulatory Flexibility Act
The Corporation has determined that
this regulatory action will not result in
(1) an annual effect on the economy of
$100 million or more; (2) a major
increase in costs or prices for
consumers, individual industries,
Federal, State, or local government
agencies, or geographic regions; or (3)
significant adverse effects on
competition, employment, investment,
productivity, innovation, or on the
ability of United States-based
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enterprises to compete with foreignbased enterprises in domestic and
export markets. Therefore, the
Corporation has not performed the
regulatory flexibility analysis that is
required under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) for
major rules that are expected to have
such results.
Other Impact Analyses
Under the Paperwork Reduction Act,
information collection requirements
which must be imposed as a result of
this regulation have been reviewed by
the Office of Management and Budget
under OMB nos. 3045–0047, 3045–0065,
3045–0100, and 3045–0101 and these
may be revised before this rule becomes
effective.
For purposes of Title II of the
Unfunded Mandates Reform Act of
1995, 2 U.S.C. 1531–1538, as well as
Executive Order 12875, this regulatory
action does not contain any Federal
mandate that may result in increased
expenditures in either Federal, State,
local, or tribal governments in the
aggregate, or impose an annual burden
exceeding $100 million on the private
sector.
List of Subjects
45 CFR Part 2510
Grant programs–social programs,
Volunteers.
45 CFR Part 2520
Grant programs–social programs,
Volunteers.
45 CFR Part 2521
Grant programs–social programs,
Volunteers.
45 CFR Part 2522
Grant programs–social programs,
Reporting and recordkeeping
requirements, Volunteers.
45 CFR Part 2540
Administrative practice and
procedure, Grant programs–social
programs, Reporting and recordkeeping
requirements, Volunteers
PART 2510—OVERALL PURPOSES
AND DEFINITIONS
1. The authority citation for part 2510
continues to read as follows:
I
Authority: 42 U.S.C. 12501 et seq.
2. Amend § 2510.20 by adding the
definitions ‘‘recognized equivalent of a
high-school diploma’’ and ‘‘target
community’’ in alphabetical order to
read as follows:
I
§ 2510.20
*
*
*
*
Recognized equivalent of a highschool diploma. The term recognized
equivalent of a high-school diploma
means:
(1) A General Education Development
Certificate (GED);
(2) A State certificate received by a
student after the student has passed a
State-authorized examination that the
State recognizes as the equivalent of a
high-school diploma;
(3) An academic transcript of a
student who has successfully completed
at least a two-year program that is
acceptable for full credit toward a
bachelor’s degree; or
(4) For a person who is seeking
enrollment in an educational program
that leads to at least an associate degree
or its equivalent and who has not
completed high-school but who excelled
academically in high-school,
documentation that the student excelled
academically in high-school and has
met the formalized, written policies of
the institution for admitting such
students.
*
*
*
*
*
Target community. The term target
community means the geographic
community in which an AmeriCorps
grant applicant intends to provide
service to address an identified unmet
human, educational, environmental, or
public safety (including disasterpreparedness and response) need.
*
*
*
*
*
PART 2520—GENERAL PROVISIONS:
AMERICORPS SUBTITLE C
PROGRAMS
1. The authority citation for part 2520
is revised to read as follows:
I
45 CFR Part 2550
Authority: 42 U.S.C. 12571–12595.
Administrative practice and
procedure, Grant programs–social
programs.
For the reasons stated in the preamble,
the Corporation for National and
Community Service amends chapter
XXV, title 45 of the Code of Federal
Regulations as follows:
I
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Definitions.
*
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2. Add a new § 2520.5 to read as
follows:
I
§ 2520.5
part?
What definitions apply to this
You. For this part, you refers to the
grantee or an organization operating an
AmeriCorps program.
I
3. Revise § 2520.20 to read as follows:
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§ 2520.20 What service activities may I
support with my grant?
§ 2520.30 What capacity-building activities
may AmeriCorps members perform?
(a) Your grant must initiate, improve,
or expand the ability of an organization
and community to provide services to
address local unmet environmental,
educational, public safety (including
disaster preparedness and response), or
other human needs.
(b) You may use your grant to support
AmeriCorps members:
(1) Performing direct service activities
that meet local needs.
(2) Performing capacity-building
activities that improve the
organizational and financial capability
of nonprofit organizations and
communities to meet local needs by
achieving greater organizational
efficiency and effectiveness, greater
impact and quality of impact, stronger
likelihood of successful replicability, or
expanded scale.
Capacity-building activities that
AmeriCorps members perform should
enhance the mission, strategy, skills,
and culture, as well as systems,
infrastructure, and human resources of
an organization that is meeting unmet
community needs. Capacity-building
activities help an organization gain
greater independence and sustainability.
(a) The AmeriCorps members you
support under your grant may perform
capacity-building activities that advance
your program’s goals and that are
included in, or consistent with, your
Corporation-approved grant application.
(b) Examples of capacity-building
activities your members may perform
include, but are not limited to, the
following:
(1) Strengthening volunteer
management and recruitment,
including:
(i) Enlisting, training, or coordinating
volunteers;
(ii) Helping an organization develop
an effective volunteer management
system;
(iii) Organizing service days and other
events in the community to increase
citizen engagement;
(iv) Promoting retention of volunteers
by planning recognition events or
providing ongoing support and followup to ensure that volunteers have a
high-quality experience; and
(v) Assisting an organization in
reaching out to individuals and
communities of different backgrounds
when encouraging volunteering to
ensure that a breadth of experiences and
expertise is represented in service
activities.
(2) Conducting outreach and securing
resources in support of service activities
that meet specific needs in the
community;
(3) Helping build the infrastructure of
the sponsoring organization, including:
(i) Conducting research, mapping
community assets, or gathering other
information that will strengthen the
sponsoring organization’s ability to meet
community needs;
(ii) Developing new programs or
services in a sponsoring organization
seeking to expand;
(iii) Developing organizational
systems to improve efficiency and
effectiveness;
(iv) Automating organizational
operations to improve efficiency and
effectiveness;
(v) Initiating or expanding revenuegenerating operations directly in
support of service activities; and
(vi) Supporting staff and board
education.
§ 2520.30
[Redesignated as § 2520.65]
4. Redesignate § 2520.30 as § 2520.65,
and add the following sections:
§§ 2520.25, 2520.30, 2520.35, 2520.40,
2520.45, 2520.50, 2520.55, and 2520.60.
I
§ 2520.25 What direct service activities
may AmeriCorps members perform?
(a) The AmeriCorps members you
support under your grant may perform
direct service activities that will
advance the goals of your program, that
will result in a specific identifiable
service or improvement that otherwise
would not be provided, and that are
included in, or consistent with, your
Corporation-approved grant application.
(b) Your members’ direct service
activities must address local
environmental, educational, public
safety (including disaster preparedness
and response), or other human needs.
(c) Direct service activities generally
refer to activities that provide a direct,
measurable benefit to an individual, a
group, or a community.
(d) Examples of the types of direct
service activities AmeriCorps members
may perform include, but are not
limited to, the following:
(1) Tutoring children in reading;
(2) Helping to run an after-school
program;
(3) Engaging in community clean-up
projects;
(4) Providing health information to a
vulnerable population;
(5) Teaching as part of a professional
corps;
(6) Providing relief services to a
community affected by a disaster; and
(7) Conducting a neighborhood watch
program as part of a public safety effort.
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39597
(4) Developing collaborative
relationships with other organizations
working to achieve similar goals in the
community, such as:
(i) Community organizations,
including faith-based organizations;
(ii) Foundations;
(iii) Local government agencies;
(iv) Institutions of higher education;
and
(v) Local education agencies or
organizations.
§ 2520.35 Must my program recruit or
support volunteers?
(a) Unless the Corporation or the State
commission, as appropriate, approves
otherwise, some component of your
program that is supported through the
grant awarded by the Corporation must
involve recruiting or supporting
volunteers.
(b) If you demonstrate that requiring
your program to recruit or support
volunteers would constitute a
fundamental alteration to your program
structure, the Corporation (or the State
commission for formula programs) may
waive the requirement in response to
your written request for such a waiver
in the grant application.
§ 2520.40 Under what circumstances may
AmeriCorps members in my program raise
resources?
(a) AmeriCorps members may raise
resources directly in support of your
program’s service activities.
(b) Examples of fundraising activities
AmeriCorps members may perform
include, but are not limited to, the
following:
(1) Seeking donations of books from
companies and individuals for a
program in which volunteers teach
children to read;
(2) Writing a grant proposal to a
foundation to secure resources to
support the training of volunteers;
(3) Securing supplies and equipment
from the community to enable
volunteers to help build houses for lowincome individuals;
(4) Securing financial resources from
the community to assist in launching or
expanding a program that provides
social services to the members of the
community and is delivered, in whole
or in part, through the members of a
community-based organization;
(5) Seeking donations from alumni of
the program for specific service projects
being performed by current members.
(c) AmeriCorps members may not:
(1) Raise funds for living allowances
or for an organization’s general (as
opposed to project) operating expenses
or endowment;
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(2) Write a grant application to the
Corporation or to any other Federal
agency.
§ 2520.45 How much time may an
AmeriCorps member spend fundraising?
An AmeriCorps member may spend
no more than ten percent of his or her
originally agreed-upon term of service,
as reflected in the member enrollment
in the National Service Trust,
performing fundraising activities, as
described in § 2520.40.
§ 2520.50 How much time may AmeriCorps
members in my program spend in
education and training activities?
(a) No more than 20 percent of the
aggregate of all AmeriCorps member
service hours in your program, as
reflected in the member enrollments in
the National Service Trust, may be spent
in education and training activities.
(b) Capacity-building activities and
direct service activities do not count
towards the 20 percent cap on education
and training activities.
§ 2520.55 When may my organization
collect fees for services provided by
AmeriCorps members?
You may, where appropriate, collect
fees for direct services provided by
AmeriCorps members if:
(a) The service activities conducted by
the members are allowable, as defined
in this part, and do not violate the nondisplacement provisions in § 2540.100
of these regulations; and
(b) You use any fees collected to
finance your non-Corporation share, or
as otherwise authorized by the
Corporation.
§ 2520.60 What government-wide
requirements apply to staff fundraising
under my AmeriCorps grant?
You must follow all applicable OMB
circulars on allowable costs (OMB
Circular A–87 for State, Local, and
Indian Tribal Governments, OMB
Circular A–122 for Nonprofit
Organizations, and OMB Circular A–21
for Educational Institutions). In general,
the OMB circulars do not allow the
following as direct costs under the
grant: Costs of organized fundraising,
including financial campaigns,
endowment drives, solicitation of gifts
and bequests, and similar expenses
incurred solely to raise capital or obtain
contributions.
PART 2521—ELIGIBLE AMERICORPS
SUBTITLE C PROGRAM APPLICANTS
AND TYPES OF GRANTS AVAILABLE
FOR AWARD
1. The authority citation for part 2521
is revised to read as follows:
I
Authority: 42 U.S.C. 12571–12595.
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2. Add a new § 2521.5 to read as
follows:
I
§ 2521.5
part?
What definitions apply to this
You. For this part, you refers to the
grantee, unless otherwise noted.
I 3. Establish a new § 2521.95 with the
heading as set forth below.
§ 2521.95 To what extent may I use grant
funds for administrative costs?
under paragraph (a) or (b) of this
section, any failure to provide the
amount above your regulatory match but
below your budgeted match will be
considered as a measure of past
performance in subsequent grant
competitions.
§ 2521.45 What are the limitations on the
Federal government’s share of program
costs?
The limitations on the Federal
government’s share are different—in
type and amount—for member support
I 4–5. Transfer the text of paragraph (h)
costs and program operating costs.
of § 2521.30 to new § 2521.95, and
(a) Member support: The Federal
remove § 2521.30(g); and:
share, including Corporation and other
I a. In new § 2521.95, redesignate
Federal funds, of member support costs,
transfered paragraphs (h)(1), (h)(2) and
which include the living allowance
(h)(3) introductory text as (a), (b), and (c), required under § 2522.240(b)(1), FICA,
respectively;
unemployment insurance (if required
I b. Redesignate transfered (h)(3)(i),
under State law), worker’s
(h)(3)(i)(A), and (h)(3)(i)(B) as (c)(1),
compensation (if required under State
(c)(1)(i), (c)(1)(ii), respectively; and
law), is limited as follows:
I c. Redesignate transfered (h)(3)(ii) and
(1) The Federal share of the living
(h)(3)(iii) as (c)(2), and (c)(3),
allowance may not exceed 85 percent of
respectively.
the minimum living allowance required
I 6. Add a new center heading after
under § 2522.240(b)(1), and 85 percent
§ 2521.30 as set forth below.
of other member support costs.
(2) If you are a professional corps
Program Matching Requirements
described in § 2522.240(b)(2)(i), you
I 7. Add the following sections:
may not use Corporation funds for the
§§ 2521.35, 2521.40, 2521.45, 2521.50,
living allowance.
2521.60, 2521.70, 2521.80, and 2521.90.
(3) Your share of member support
costs must be non-Federal cash.
§ 2521.35 Who must comply with matching
(4) The Corporation’s share of health
requirements?
care costs may not exceed 85 percent.
(a) The matching requirements
(b) Program operating costs: The
described in §§ 2521.40 through 2521.95
Corporation share of program operating
apply to you if you are a subgrantee of
costs may not exceed 67 percent. These
a State commission or a direct program
costs include expenditures (other than
grantee of the Corporation. These
requirements do not apply to Education member support costs described in
paragraph (a) of this section) such as
Award Programs.
(b) If you are a State commission, you staff, operating expenses, internal
must ensure that your grantees meet the evaluation, and administration costs.
(1) You may provide your share of
match requirements established in this
program operating costs with cash,
part, and you are also responsible for
including other Federal funds (as long
meeting an aggregate overall match
as the other Federal agency permits its
based on your grantees’ match
funds to be used as match), or third
individual match requirements.
party in-kind contributions.
(2) Contributions, including third
§ 2521.40 What are the matching
requirements?
party in-kind must:
(i) Be verifiable from your records;
If you are subject to matching
(ii) Not be included as contributions
requirements under § 2521.35, you must
for any other Federally assisted
adhere to the following:
program;
(a) Basic match: At a minimum, you
(iii) Be necessary and reasonable for
must meet the basic match requirements
the proper and efficient
as articulated in § 2521.45.
accomplishment of your program’s
(b) Regulatory match: In addition to
the basic requirements under paragraph objectives; and
(iv) Be allowable under applicable
(a) of this section, you must provide an
OMB cost principles.
overall level of matching funds
(3) You may not include the value of
according to the schedule in
direct community service performed by
§ 2521.60(a), or § 2521.60(b) if
volunteers, but you may include the
applicable.
(c) Budgeted match: To the extent that value of services contributed by
the match in your approved budget
volunteers to your organizations for
exceeds your required match levels
organizational functions such as
§ 2521.30
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accounting, audit, and training of staff
and AmeriCorps programs.
§ 2521.60 To what extent must my share of
program costs increase over time?
§ 2521.50 If I am an Indian Tribe, to what
extent may I use tribal funds towards my
share of costs?
Except as provided in paragraph (b) of
this section, if your program continues
to receive funding after an initial threeyear grant period, you must continue to
meet the minimum requirements in
§ 2541.45 of this part. In addition, your
required share of program costs,
including member support and
operating costs, will incrementally
increase to a 50 percent overall share by
the tenth year and any year thereafter
If you are an Indian Tribe that
receives tribal funds through Public Law
93–638 (the Indian Self-Determination
and Education Assistance Act), those
funds are considered non-Federal and
you may use them towards your share
of costs, including member support
costs.
Year 1
(percent)
Minimum member support ...........
Minimum operating costs .............
Minimum overall share .................
15
33
N/A
(2) A grantee must have contributed
matching resources by the end of a grant
period in an amount equal to the
combined total of the minimum overall
annual match for each year of the grant
period, according to the table in
paragraph (a)(1) of this section.
(3) A State commission may meet its
match based on the aggregate of its
Year 1
(percent)
Minimum member support ...........
Minimum operating costs .............
Minimum overall share .................
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Year 3
(percent)
15
33
N/A
15
33
N/A
Year 4
(percent)
15
33
26
Year 5
(percent)
Year 6
(percent)
15
33
30
15
33
34
grantees’ individual match
requirements.
(b) Alternative match requirements: If
your program is unable to meet the
match requirements as required in
paragraph (a) of this section, and is
located in a rural or a severely
economically distressed community,
you may apply to the Corporation for a
Year 2
(percent)
15
33
N/A
(c) Determining Program Location. (1)
The Corporation will determine whether
your program is located in a rural
county by considering the U.S.
Department of Agriculture’s Beale
Codes.
(2) The Corporation will determine
whether your program is located in a
severely economically distressed county
by considering unemployment rates, per
capita income, and poverty rates.
(3) Unless the Corporation approves
otherwise, as provided in paragraph
(c)(4) of this section, the Corporation
will determine the location of your
program based on the legal applicant’s
address.
(4) If you believe that the legal
applicant’s address is not the
appropriate way to consider the location
of your program, you may request the
waiver described in paragraph (b) of this
section and provide the relevant facts
about your program location to support
your request.
(d) Schedule for current program
grants: If you have completed at least
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Year 2
(percent)
Year 3
(percent)
15
33
N/A
15
33
N/A
Year 4
(percent)
15
33
N/A
Year 5
(percent)
15
33
N/A
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Year 7
(percent)
15
33
38
Year 8
(percent)
15
33
42
Year 9
(percent)
Year 10
(percent)
15
33
46
15
33
50
waiver that would require you to
increase the overall amount of your
share of program costs beginning in the
seventh consecutive year that you
receive a grant, according to the
following table:
Year 6
(percent)
one three-year grant cycle on the date
this regulation takes effect, you will be
required to provide your share of costs
beginning at the year three level,
according to the table in paragraph (a)
of this section, in the first program year
in your grant following the regulation’s
effective date, and increasing each year
thereafter as reflected in the table.
(e) Flexibility in how you provide your
share: As long as you meet the basic
match requirements in § 2521.45, you
may use cash or in-kind contributions to
reach the overall share level. For
example, if your organization finds it
easier to raise member support match,
you may choose to meet the required
overall match by raising only more
member support match, and leave
operational match at the basic level, as
long as you provide the required overall
match.
(f) Reporting excess resources. (1) The
Corporation encourages you to obtain
support over-and-above the matching
fund requirements. Reporting these
resources may make your application
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that you receive a grant, without a break
in funding of five years or more. A 50
percent overall match means that you
will be required to match $1 for every
$1 you receive from the Corporation.
(a) Minimum Organization Share: (1)
Subject to the requirements of § 2521.45
of this part, and except as provided in
paragraph (b) of this section, your
overall share of program costs will
increase as of the fourth consecutive
year that you receive a grant, according
to the following timetable:
15
33
N/A
Year 7
(percent)
15
33
29
Year 8
(percent)
15
33
31
Year 9
(percent)
Year 10
(percent)
15
33
33
15
33
35
more likely to be selected for funding,
based on the selection criteria in
§§ 2522.430 and 2522.435 of these
regulations.
(2) You must comply with § 2543.23
of this title and applicable OMB
circulars in documenting cash and inkind contributions and excess resources.
§ 2521.70 To what extent may the
Corporation waive the matching
requirements in §§ 2521.45 and 2521.60 of
this part?
(a) The Corporation may waive, in
whole or in part, the requirements of
§§ 2521.45 and 2521.60 of this part if
the Corporation determines that a
waiver would be equitable because of a
lack of available financial resources at
the local level.
(b) If you are requesting a waiver, you
must demonstrate:
(1) The lack of resources at the local
level;
(2) That the lack of resources in your
local community is unique or unusual;
(3) The efforts you have made to raise
matching resources; and
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(4) The amount of matching resources
you have raised or reasonably expect to
raise.
(c) You must provide with your
waiver request:
(1) A request for the specific amount
of match you are requesting that the
Corporation waive; and
(2) A budget and budget narrative that
reflects the requested level in matching
resources.
§ 2521.80 What matching level applies if
my program was funded in the past but has
not recently received an AmeriCorps grant?
(a) If you have not been a direct
recipient of an AmeriCorps operational
grant from the Corporation or a State
commission for five years or more, as
determined by the end date of your most
recent grant period, you may begin
matching at the year one level, as
reflected in the timetable in § 2521.60(a)
of this part, upon receiving your new
grant award.
(b) If you have not been a direct
recipient of an AmeriCorps operational
grant from the Corporation or a State
commission for fewer than five years,
you must begin matching at the same
level you were matching at the end of
your most recent grant period.
§ 2521.90 If I am a new or replacement
legal applicant for an existing program,
what will my matching requirements be?
If your organization is a new or
replacement legal applicant for an
existing program, you must provide
matching resources at the level the
previous legal applicant had reached at
the time you took over the program.
PART 2522—AMERICORPS
PARTICIPANTS, PROGRAMS, AND
APPLICANTS
1. The authority citation for part 2522
is revised to read as follows:
I
Authority: 42 U.S.C. 12571–12595.
2. Add a new § 2522.10 to subpart A
to read as follows:
I
§ 2522.10
part?
What definitions apply to this
You. For this part, you refers to the
grantee, unless otherwise noted.
I 3. Amend § 2522.250 as follows:
I a. In paragraph (a)(3) revise the text to
read as follows; and
I b. In paragraph (b)(3) revise the
paragraph heading, and paragraph
(b)(3)(i), to read as follows:
§ 2522.250 What other benefits do
AmeriCorps participants serving in
approved AmeriCorps positions receive?
(a) * * *
(3) * * * The amount of the childcare allowance may not exceed the
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applicable payment rate to an eligible
provider established by the State for
child care funded under the Child Care
and Development Block Grant Act of
1990 (42 U.S.C. 9858c(4)(A)).
*
*
*
*
*
(b) * * *
(3) Corporation share. (i) Except as
provided in paragraph (b)(3)(ii) of this
section, the Corporation’s share of the
cost of health coverage may not exceed
85 percent.
*
*
*
*
*
I 4a. Revise § 2522.400 and § 2522.410
to read as follows:
§ 2522.400 What process does the
Corporation use to select new grantees?
The Corporation uses a multi-stage
process, which may include review by
panels of experts, Corporation staff
review, and approval by the Chief
Executive Officer or the Board of
Directors, or their designee.
§ 2522.410 What is the role of the
Corporation’s Board of Directors in the
selection process?
The Board of Directors has general
authority to determine the selection
process, including priorities and
selection criteria, and has authority to
make grant decisions. The Board may
delegate these functions to the Chief
Executive Officer.
§ 2522.420
[Redesignated as § 2522.480]
4b. Redesignate § 2522.420 as
§ 2522.480.
I 5. Add the following sections:
§§ 2522.415, 2522.420, 2522.425,
2522.430, 2522.435, 2522.440, 2522.445,
2522.448, 2522.450, 2522.455, 2522.460,
2522.465, 2522.470, and 2522.475.
I
§ 2522.415 How does the grant selection
process work?
The selection process includes:
(a) Determining whether your
proposal complies with the application
requirements, such as deadlines and
eligibility requirements;
(b) Applying the basic selection
criteria to assess the quality of your
proposal;
(c) Applying any applicable priorities
or preferences, as stated in these
regulations and in the applicable Notice
of Funding Availability; and
(d) Ensuring innovation and
geographic, demographic, and
programmatic diversity across the
Corporation’s national AmeriCorps
portfolio.
§ 2522.420 What basic criteria does the
Corporation use in making funding
decisions?
In evaluating your application for
funding, the Corporation will assess:
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(a) Your program design;
(b) Your organizational capability;
and
(c) Your program’s cost-effectiveness
and budget adequacy.
§ 2522. 425 What does the Corporation
consider in assessing Program Design?
In determining the quality of your
proposal’s program design, the
Corporation considers your rationale
and approach for the proposed program,
member outputs and outcomes, and
community outputs and outcomes.
(a) Rationale and approach. In
evaluating your rationale and approach,
the Corporation considers the following
criteria:
(1) Whether your proposal describes
and adequately documents a compelling
need within the target community,
including a description of how you
identified the need;
(2) Whether your proposal includes
well-designed activities that address the
compelling need, with ambitious
performance measures, and a plan or
system for continuous program selfassessment and improvement;
(3) Whether your proposal describes
well-defined roles for participants that
are aligned with the identified needs
and that lead to measurable outputs and
outcomes; and
(4) The extent to which your proposed
program or project:
(i) Effectively involves the target
community in planning and
implementation;
(ii) Builds on (without duplicating), or
reflects collaboration with, other
national and community service
programs supported by the Corporation;
and
(iii) Is designed to be replicated.
(b) Member outputs and outcomes. In
evaluating how your proposal addresses
member outputs and outcomes, the
Corporation considers the extent to
which your proposal or program:
(1) Includes effective and feasible
plans for, or evidence of, recruiting,
managing, and rewarding diverse
members, including those from the
target community, and demonstrating
member satisfaction;
(2) If you are a current grantee, has
succeeded in meeting reasonable
member enrollment and retention
targets in prior grant periods, as
determined by the Corporation;
(3) Includes effective and feasible
plans for, or evidence of, developing,
training, and supervising members;
(4) Demonstrates well-designed
training or service activities that
promote and sustain post-service, an
ethic of service and civic responsibility,
including structured opportunities for
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members to reflect on and learn from
their service; and
(5) If you are a current grantee, has
met well-defined, performance
measures regarding AmeriCorps
members, including any applicable
national performance measures, and
including outputs and outcomes.
(c) Community outputs and outcomes.
In evaluating whether your proposal
adequately addresses community
outputs and outcomes, the Corporation
considers the extent to which your
proposal or program:
(1) Is successful in meeting targeted,
compelling community needs, or if you
are a current grantee, the extent to
which your program has met its welldefined, community-based performance
measures, including any applicable
national performance measures, and
including outputs and outcomes, in
previous grant cycles, and is continually
expanding and increasing its reach and
impact in the community;
(2) Has an impact in the community
that is sustainable beyond the presence
of Federal support (For example, if one
of your projects is to revitalize a local
park, you would meet this criterion by
showing that after you have completed
your revitalization project, the
community will continue its upkeep on
its own);
(3) Generates and supports volunteers
to expand the reach of your program in
the community; and
(4) Enhances capacity-building of
other organizations and institutions
important to the community, such as
schools, homeland security
organizations, neighborhood watch
organizations, civic associations, and
community organizations, including
faith-based organizations.
§ 2522.430 How does the Corporation
assess my organizational capability?
(a) In evaluating your organizational
capability, the Corporation considers
the following:
(1) The extent to which your
organization has a sound structure
including:
(i) The ability to provide sound
programmatic and fiscal oversight;
(ii) Well-defined roles for your board
of directors, administrators, and staff;
(iii) A well-designed plan or systems
for organizational (as opposed to
program) self-assessment and
continuous improvement; and
(iv) The ability to provide or secure
effective technical assistance.
(2) Whether your organization has a
sound record of accomplishment as an
organization, including the extent to
which you:
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(i) Generate and support diverse
volunteers who increase your
organization’s capacity;
(ii) Demonstrate leadership within the
organization and the community served;
and
(iii) If you are an existing grantee, you
have secured the matching resources as
reflected in your prior grant awards;
(3) The extent to which you are
securing community support that
recurs, expands in scope, or increases in
amount, and is more diverse, as
evidenced by—
(i) Collaborations that increase the
quality and reach of service and include
well-defined roles for faith-based and
other community organizations;
(ii) Local financial and in-kind
contributions; and
(iii) Supporters who represent a wide
range of community stakeholders.
(b) In applying the criteria in
paragraph (a) of this section to each
proposal, the Corporation may take into
account the following circumstances of
individual organizations:
(1) The age of your organization and
its rate of growth; and
(2) Whether your organization serves
a resource-poor community, such as a
rural or remote community, a
community with a high poverty rate, or
a community with a scarcity of
philanthropic and corporate resources.
§ 2522.435 How does the Corporation
evaluate the cost-effectiveness and budget
adequacy of my program?
(a) In evaluating the cost-effectiveness
and budget adequacy of your proposed
program, the Corporation considers the
following:
(1) Whether your program is costeffective based on:
(i) Your program’s proposed
Corporation cost per MSY, as defined in
§ 2522.485; and
(ii) Other indicators of costeffectiveness, such as:
(A) The extent to which your program
demonstrates diverse non-Federal
resources for program implementation
and sustainability;
(B) If you are a current grantee, the
extent to which you are increasing your
share of costs to meet or exceed program
goals; or
(C) If you are a current grantee, the
extent to which you are proposing
deeper impact or broader reach without
a commensurate increase in Federal
costs; and
(2) Whether your budget is adequate
to support your program design.
(b) In applying the cost-effectiveness
criteria in paragraph (a) of this section,
the Corporation will take into account
the following circumstances of
individual programs:
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(1) Program age, or the extent to
which your program brings on new
sites;
(2) Whether your program or project
is located in a resource-poor
community, such as a rural or remote
community, a community with a high
poverty rate, or a community with a
scarcity of corporate or philanthropic
resources;
(3) Whether your program or project
is located in a high-cost, economically
distressed community, measured by
applying appropriate Federal and State
data; and
(4) Whether the reasonable and
necessary costs of your program or
project are higher because they are
associated with engaging or serving
difficult-to-reach populations, or
achieving greater program impact as
evidenced through performance
measures and program evaluation.
(c) The indicators in paragraphs
(a)(1)(i) and (a)(1)(ii)(B) of this section
do not apply to Education Award
Program applicants.
§ 2522.440 What weight does the
Corporation give to each category of the
basic criteria?
In evaluating applications, the
Corporation assigns the following
weights for each category:
Category
Percentage
Program design ........................
Organizational capability ..........
Cost-effectiveness and budget
adequacy ...............................
50
25
25
§ 2522.445 What weights does the
Corporation give to the subcategories
under Program Design?
The Corporation gives the following
weights to the subcategories under
Program Design:
Program design sub-category
Percentage
Rationale and approach ...........
Member outputs and outcomes
Community outputs and outcomes ....................................
10
20
20
§ 2522.448 What weights does the
Corporation give to the subcategories
under Cost Effectiveness and Budget
Adequacy?
Cost-effectiveness and budget
adequacy sub-category
Percentage
Cost-effectiveness ....................
Adequacy of budget .................
15
10
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§ 2522.450 What types of programs or
program models may receive special
consideration in the selection process?
Following the scoring of proposals
under § 2522.440 of this part, the
Corporation will seek to ensure that its
portfolio of approved programs includes
a meaningful representation of
proposals that address one or more of
the following priorities:
(a) Program models: (1) Programs
operated by community organizations,
including faith-based organizations, or
programs that support the efforts of
community organizations, including
faith-based organizations, to solve local
problems;
(2) Lower-cost professional corps
programs, as defined in paragraph (a)(3)
of § 2522.110 of this chapter.
(b) Program activities: (1) Programs
that serve or involve children and
youth, including mentoring of
disadvantaged youth and children of
prisoners;
(2) Programs that address educational
needs, including those that carry out
literacy and tutoring activities generally,
and those that focus on reading for
children in the third grade or younger;
(3) Programs that focus on homeland
security activities that support and
promote public safety, public health,
and preparedness for any emergency,
natural or man-made (this includes
programs that help to plan, equip, train,
and practice the response capabilities of
many different response units ready to
mobilize without warning for any
emergency);
(4) Programs that address issues
relating to the environment;
(5) Programs that support
independent living for seniors or
individuals with disabilities;
(6) Programs that increase service and
service-learning on higher education
campuses in partnership with their
surrounding communities;
(7) Programs that foster opportunities
for Americans born in the post-World
War II baby boom to serve and volunteer
in their communities; and
(8) Programs that involve communitydevelopment by finding and using local
resources, and the capacities, skills, and
assets of lower-income people and their
community, to rejuvenate their local
economy, strengthen public and private
investments in the community, and help
rebuild civil society.
(c) Programs supporting distressed
communities: Programs or projects that
will be conducted in:
(1) A community designated as an
empowerment zone or redevelopment
area, targeted for special economic
incentives, or otherwise identifiable as
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having high concentrations of lowincome people;
(2) An area that is environmentally
distressed, as demonstrated by Federal
and State data;
(3) An area adversely affected by
Federal actions related to managing
Federal lands that result in significant
regional job losses and economic
dislocation;
(4) An area adversely affected by
reductions in defense spending or the
closure or realignment of military
installation;
(5) An area that has an unemployment
rate greater than the national average
unemployment for the most recent 12
months for which State or Federal data
are available;
(6) A rural community, as
demonstrated by Federal and State data;
or
(7) A severely economically distressed
community, as demonstrated by Federal
and State data.
(d) Other programs: Programs that
meet any additional priorities as the
Corporation determines and
disseminates in advance of the selection
process.
§ 2522.455 How do I find out about
additional priorities governing the selection
process?
The Corporation posts discretionary
funding opportunities addressing the
Corporation’s selection preferences and
additional requirements on our website
at www.nationalservice.gov and at
www.grants.gov in advance of grant
competitions
§ 2522. 460 To what extent may the
Corporation or a State commission
consider priorities other than those stated
in these regulations or the Notice of
Funding Availability?
(a) The Corporation may give special
consideration to a national service
program submitted by a State
commission that does not meet one of
the Corporation’s priorities if the State
commission adequately explains why
the State is not able to carry out a
program that meets one of the
Corporation’s priorities, and why the
program meets one of the State’s
priorities.
(b) A State may apply priorities
different than those of the Corporation
in selecting its formula programs.
§ 2522.465 What information must a State
commission submit on the relative
strengths of applicants for State
competitive funding?
(a) If you are a State commission
applying for State competitive funding,
you must prioritize the proposals you
submit in rank order based on their
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relative quality and according to the
following table:
If you submit this
number of state competitive proposals
to the corporation
Then you must rank
this number of
proposals
1 to 12 ........................
13 to 24 ......................
25 or more ..................
At least top 5.
At least top 10.
At least top 15.
(b) While the rankings you provide
will not be determinative in the grant
selection process, and the Corporation
will not be bound by them, we will
consider them in our selection process.
§ 2522.470 What other factors or
information may the Corporation consider
in making final funding decisions?
(a) The Corporation will seek to
ensure that our portfolio of AmeriCorps
programs is programmatically,
demographically, and geographically
diverse and includes innovative
programs, and projects in rural, high
poverty, and economically distressed
areas.
(b) In applying the selection criteria
under §§ 2522.420 through 2522.435,
the Corporation may, with respect to a
particular proposal, also consider one or
more of the following for purposes of
clarifying or verifying information in a
proposal, including conducting due
diligence to ensure an applicant’s ability
to manage Federal funds:
(1) For an applicant that has
previously received a Corporation grant,
any information or records the applicant
submitted to the Corporation, or that the
Corporation has in its system of records,
in connection with its previous grant
(e.g. progress reports, site visit reports,
financial status reports, audits, HHS
Account Payment Data Reports, Federal
Cash Transaction Reports, timeliness of
past reporting, etc.);
(2) Program evaluations;
(3) Member-related information from
the Corporation’s systems;
(4) Other Corporation internal
information, including information from
the Office of Inspector General,
administrative standards for State
commissions, and reports on program
training and technical assistance;
(5) IRS Tax Form 990;
(6) An applicant organization’s annual
report;
(7) Information relating to the
applicant’s financial management from
Corporation records;
(8) Member satisfaction indicators;
(9) Publicly available information
including:
(i) Socio-economic and demographic
data, such as poverty rate,
unemployment rate, labor force
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participation, and median household
income;
(ii) Information on where an applicant
and its activities fall on the U.S.
Department of Agriculture’s urban-rural
continuum (Beale codes);
(iii) Information on the nonprofit and
philanthropic community, such as
charitable giving per capita;
(iv) Information from an applicant
organization’s website; and
(v) U.S. Department of Education data
on Federal Work Study and Community
Service; and
(10) Other information, following
notice in the relevant Notice of Funding
Availability, of the specific information
and the Corporation’s intention to be
able to consider that information in the
review process.
(c) Before approving a program grant
to a State commission, the Corporation
will consider a State commission’s
capacity to manage and monitor grants.
§ 2522. 475 To what extent must I use the
Corporation’s selection criteria and
priorities when selecting formula programs
or operating sites?
You must ensure that the selection
criteria you use include the following
criteria:
(a) The quality of the national service
program proposed to be carried out
directly by the applicant or supported
by a grant from the applicant.
(b) The innovative aspects of the
national service program, and the
feasibility of replicating the program.
(c) The sustainability of the national
service program.
(d) The quality of the leadership of
the national service program, the past
performance of the program, and the
extent to which the program builds on
existing programs.
(e) The extent to which participants of
the national service program are
recruited from among residents of the
communities in which projects are to be
conducted, and the extent to which
participants and community residents
are involved in the design, leadership,
and operation of the program.
(f) The extent to which projects would
be conducted in one of the areas listed
in § 2522.450(c)(1) through (5) of this
subpart.
(g) In the case of applicants other than
States, the extent to which the
application is consistent with the
application of the State in which the
projects would be conducted.
(h) Such other criteria as the
Corporation considers to be appropriate,
following appropriate notice.
I 6. Add new § 2522.485 to read as
follows:
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§ 2522.485 How do I calculate my
program’s budgeted Corporation cost per
member service year (MSY)?
If you are an AmeriCorps national and
community service program, you
calculate your Corporation cost per
MSY by dividing the Corporation’s
share of budgeted grant costs by the
number of member service years you are
awarded in your grant. You do not
include child-care or the cost of the
education award a member may earn
through serving with your program.
§§ 2522.540, 2522.550, and 2522.560
[Redesignated as §§ 2522.800, 2522.810,
and 2522.820]
7. Amend subpart E of part 2522 as
follows:
a. By redesignating § 2522.540,
§ 2522.550, and § 2522.560 as
§ 2522.800, § 2522.810, and § 2522.820
respectively;
b. By revising §§ 2522.500, 2522.510,
2522.520, and 2522.530;
c. By adding §§ 2522.540, 2522.550,
2522.560, 2522.570, 2522.580, 2522.590,
2522.600, 2522.610, 2522.620, 2522.630,
2522.640, 2522.650, 2522.700, 2522.710,
2522.720, 2522.730, and 2522.740; and
d. By adding undesignated center
headings preceding §§ 2522.550 and
2522.700.
The added and revised text reads as
follows:
I
§ 2522.500
subpart?
What is the purpose of this
(a) This subpart sets forth the
minimum performance measures and
evaluation requirements that you as a
Corporation applicant or grantee must
follow.
(b) The performance measures that
you, as an applicant, propose when you
apply will be considered in the review
process and may affect whether the
Corporation selects you to receive a
grant. Your performance related to your
approved measures will influence
whether you continue to receive
funding.
(c) Performance measures and
evaluations are designed to strengthen
your AmeriCorps program and foster
continuous improvement, and help
identify best practices and models that
merit replication, as well as
programmatic weaknesses that need
attention.
§ 2522.510
apply?
To whom does this subpart
This subpart applies to you if you are
a Corporation grantee administering an
AmeriCorps grant, including an
Education Award Program grant, or if
you are applying to receive AmeriCorps
funding from the Corporation.
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§ 2522.520 What special terms are used in
this subpart?
The following definitions apply to
terms used in this subpart of the
regulations:
(a) Approved application means the
application approved by the
Corporation or, for formula programs, by
a State commission.
(b) Community beneficiaries refers to
persons who receive services or benefits
from a program, but not to AmeriCorps
members or to staff of the organization
operating the program.
(c) Outputs are the amount or units of
service that members or volunteers have
completed, or the number of community
beneficiaries the program has served.
Outputs do not provide information on
benefits or other changes in
communities or in the lives of members
or community beneficiaries. Examples
of outputs could include the number of
people a program tutors, counsels,
houses, or feeds.
(d) Intermediate-outcomes specify a
change that has occurred in
communities or in the lives of
community beneficiaries or members,
but is not necessarily a lasting benefit
for them. They are observable and
measurable indications of whether or
not a program is making progress and
are logically connected to end
outcomes. An example would be the
number and percentage of students who
report reading more books as a result of
their participation in a tutoring
program.
(e) Internal evaluation means an
evaluation that a grantee performs inhouse without the use of an
independent external evaluator.
(f) End-outcomes specify a change
that has occurred in communities or in
the lives of community beneficiaries or
members that is significant and lasting.
These are actual benefits or changes for
participants during or after a program.
For example, in a tutoring program, the
end outcome could be the percent and
number of students who have improved
their reading scores to grade-level, or
other specific measures of academic
achievement.
(g) Grantee includes subgrantees,
programs, and projects.
(h) National performance measures
are performance measures that the
Corporation develops.
(h) You refers to a grantee or applicant
organization.
§ 2522.530 May I use the Corporation’s
program grant funds for performance
measurement and evaluation?
If performance measurement and
evaluation costs were approved as part
of your grant, you may use your
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program grant funds to support them,
consistent with the level of approved
costs for such activities in your grant
award.
§ 2522.540 Do the costs of performance
measurement or evaluation count towards
the statutory cap on administrative costs?
No, the costs of performance
measurement and evaluation do not
count towards the statutory five percent
cap on administrative costs in the grant,
as provided in § 2540.110 of this
chapter.
Performance Measures: Requirements
and Procedures
§ 2522.550 What basic requirements must
I follow in measuring performance under
my grant?
All grantees must establish, track, and
assess performance measures for their
programs. As a grantee, you must ensure
that any program under your oversight
fulfills performance measure and
evaluation requirements. In addition,
you must:
(a) Establish ambitious performance
measures in consultation with the
Corporation, or the State commission, as
appropriate, following §§ 2422.560
through 2422.660 of this subpart;
(b) Ensure that any program under
your oversight collects and organizes
performance data on an ongoing basis,
at least annually;
(c) Ensure that any program under
your oversight tracks progress toward
meeting your performance measures;
(d) Ensure that any program under
your oversight corrects performance
deficiencies promptly; and
(e) Accurately and fairly present the
results in reports to the Corporation.
§ 2522.560 What are performance
measures and performance measurement?
(a) Performance measures are
measurable indicators of a program’s
performance as it relates to member
service activities.
(b) Performance measurement is the
process of regularly measuring the
services provided by your program and
the effect your program has in
communities or in the lives of members
or community beneficiaries.
(c) The main purpose of performance
measurement is to strengthen your
AmeriCorps program and foster
continuous improvement and to identify
best practices and models that merit
replication. Performance measurement
will also help identify programmatic
weaknesses that need attention.
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§ 2522.570 What information on
performance measures must my grant
application include?
You must submit all of the following
as part of your application for each
program:
(a) Proposed performance measures,
as described in § 2522.580 and
§ 2522.590 of this part.
(b) Estimated performance data for the
program years for which you submit
your application; and
(c) Actual performance data, where
available, as follows:
(i) For continuation programs,
performance data over the course of the
grant to date; and
(ii) For recompeting programs,
performance data for the preceding
three-year grant cycle.
§ 2522.580 What performance measures
am I required to submit to the Corporation?
(a) When applying for funds, you
must submit, at a minimum, the
following performance measures:
(1) One set of aligned performance
measures (one output, one intermediateoutcome, and one end-outcome) that
capture the results of your program’s
primary activity, or area of significant
activity for programs whose design
precludes identifying a primary activity;
and
(2) Any national performance
measures the Corporation may require,
as specified in paragraph (b) of
§ 2522.590.
(b) For example, a tutoring program
might use the following aligned
performance measures:
(1) Output: Number of students that
participated in a tutoring program;
(2) Intermediate-Outcome: Percent of
students reading more books; and
(3) End-Outcome: Number and
percent of students who have improved
their reading score to grade level.
(c) The Corporation encourages you to
exceed the minimum requirements
expressed in this section and expects, in
second and subsequent grant cycles,
that you will more fully develop your
performance measures, including
establishing multiple performance
indicators, and improving and refining
those you used in the past. Any
performance measures you submit
beyond what is required in paragraph
(a)(1) of this section may or may not be
aligned sets of measures.
§ 2522.590 Who develops my performance
measures?
(a) You are responsible for developing
your program-specific performance
measures through your own internal
process.
(b) In addition, the Corporation may,
in consultation with grantees, establish
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performance measures that will apply to
all Corporation-sponsored programs,
which you will be responsible for
collecting and meeting.
§ 2522.600 Who approves my performance
measures?
(a) The Corporation will review and
approve performance measures, as part
of the grant application review process,
for all non-formula programs. If the
Corporation selects your application for
funding, the Corporation will approve
your performance measures as part of
your grant award.
(b) If you are a program submitting an
application under the State formula
category, the applicable State
commission is responsible for reviewing
and approving your performance
measures. The Corporation will not
separately approve these measures.
§ 2522.610 What is the difference in
performance measurements requirements
for competitive and formula programs?
(a) Except as provided in paragraph
(b) of this section, State commissions
are responsible for making the final
determination of performance measures
for State formula programs, while the
Corporation makes the final
determination for all other programs.
(b) The Corporation may, through the
State commission, require that formula
programs meet certain national
performance measures above and
beyond what the State commission has
individually negotiated with its formula
grantees.
(c) While State commissions must
hold their sub-grantees responsible for
their performance measures, a State
commission, as a grantee, is responsible
to the Corporation for its formula
programs’ performance measures.
§ 2522.620 How do I report my
performance measures to the Corporation?
The Corporation sets specific
reporting requirements, including
frequency and deadlines, for
performance measures in the grant
award.
(a) In general, you are required to
report on the actual results that
occurred when implementing the grant
and to regularly measure your program’s
performance.
(b) Your report must include the
results on the performance measures
approved as part of your grant award.
(c) At a minimum, you are required to
report on outputs at the end of year one;
outputs and intermediate-outcomes at
the end of year two; and outputs,
intermediate-outcomes and endoutcomes at the end of year three. We
encourage you to exceed these
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minimum requirements and report
results earlier.
§ 2522.630 What must I do if I am not able
to meet my performance measures?
If you are not on track to meet your
performance measures, you must
develop and submit to the Corporation,
or the State commission for formula
programs, a corrective action plan,
consistent with paragraph (a) of this
section, or submit a request to the
Corporation, or the State commission for
formula programs, consistent with
paragraph (b) of this section, to amend
your requirements under the
circumstances described in § 2522.640
of this subpart.
(a) Your corrective action plan must
be in writing and include all of the
following:
(1) The factors impacting your
performance goals;
(2) The strategy you are using and
corrective action you are taking to get
back on track toward your established
performance measures; and
(3) The timeframe in which you plan
to achieve getting back on track with
your performance measures.
(b) A request to amend your
performance measures must include all
of the following:
(1) Why you are not on track to meet
your performance requirements;
(2) How you have been tracking
performance measures;
(3) Evidence of the corrective action
you have taken;
(4) Any new proposed performance
measures or targets; and
(5) Your plan to ensure that you meet
any new measures.
(c) You must submit your plan under
paragraph (a) of this section, or your
request under paragraph (b) of this
section, within 30 days of determining
that you are not on track to meeting
your performance measures.
(d) If you are a formula program, the
State commission that approves the plan
under paragraph (a) of this section or
the request to amend your performance
measures under paragraph (b) of this
section, must forward an information
copy to the Corporation’s AmeriCorps
program office within 15 days of
approving the plan or the request.
§ 2522.640 Under what circumstances may
I change my performance measures?
(a) You may change your performance
measures only if the Corporation or, for
formula programs, the State
commission, approves your request to
do so based on your need to:
(1) Adjust your performance measure
or target based on experience so that
your program’s goals are more realistic
and manageable;
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(2) Replace a measure related to one
issue area with one related to a different
issue area that is more aligned with your
program service activity. For example,
you may need to replace an objective
related to health with one related to the
environment;
(3) Redefine the service that
individuals perform under the grant. For
example, you may need to define your
service as tutoring adults in English, as
opposed to operating an after-school
program for third-graders;
(4) Eliminate an activity because you
have been unable to secure necessary
matching funding; or
(5) Replace one measure with another.
For example, you may decide that you
want to replace one measure of literacy
tutoring (increased attendance at school)
with another (percentage of students
who are promoted to the next grade
level).
(b) [Reserved].
§ 2522.650 What happens if I fail to meet
the performance measures included in my
grant?
(a) If you are significantly underperforming based on the performance
measures approved in your grant, or fail
to collect appropriate data to allow
performance measurement, the
Corporation, or the State commission for
formula grantees, may specify a period
of correction, after consulting with you.
As a grantee, you must report results at
the end of the period of correction. At
that point, if you continue to underperform, or fail to collect appropriate
data to allow performance
measurement, the Corporation may take
one or more of the following actions:
(1) Reduce the amount of your grant;
(2) Suspend or terminate your grant;
(3) Use this information to assess any
application from your organization for a
new AmeriCorps grant or a new grant
under another program administered by
the Corporation;
(4) Amend the terms of any
Corporation grants to your organization;
or
(5) Take other actions that the
Corporation deems appropriate.
(b) If you are a State commission
whose formula program(s) is
significantly under-performing or failing
to collect appropriate data to allow
performance measurement, we
encourage you to take action as
delineated in paragraph (a) of this
section.
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39605
Evaluating Programs: Requirements
and Procedures
§ 2522.700 How does evaluation differ
from performance measurement?
(a) Evaluation is a more in-depth,
rigorous effort to measure the impact of
programs. While performance
measurement and evaluation both
include systematic data collection and
measurement of progress, evaluation
uses scientifically-based research
methods to assess the effectiveness of
programs by comparing the observed
program outcomes with what would
have happened in the absence of the
program. Unlike performance measures,
evaluations estimate the impacts of
programs by comparing the outcomes
for individuals receiving a service or
participating in a program to the
outcomes for similar individuals not
receiving a service or not participating
in a program. For example, an
evaluation of a literacy program may
compare the reading ability of students
in a program over time to a similar
group of students not participating in a
program.
(b) Performance measurement is the
process of systematically and regularly
collecting and monitoring data related
to the direction of observed changes in
communities, participants (members), or
end beneficiaries receiving your
program’s services. It is intended to
provide an indication of your program’s
operations and performance. In contrast
to evaluation, it is not intended to
establish a causal relationship between
your program and a desired (or
undesired) program outcome. For
example, a performance measure for a
literacy program may include the
percentage of students receiving
services from your program who
increase their reading ability from
‘‘below grade level’’ to ‘‘at or above
grade level’’. This measure indicates
something good is happening to your
program’s service beneficiaries, but it
does not indicate that the change can be
wholly attributed to your program’s
services.
§ 2522.710 What are my evaluation
requirements?
(a) If you are a State commission, you
must establish and enforce evaluation
requirements for your State formula
subgrantees, as you deem appropriate.
(b) If you are a State competitive or
direct Corporation AmeriCorps grantee
(other than an Education Award
Program grantee), and your average
annual Corporation program grant is
$500,000 or more, you must arrange for
an independent evaluation of your
program, and you must submit the
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evaluation with any application to the
Corporation for competitive funds as
required in § 2522.730 of this subpart.
(c) If you are a State competitive or
direct Corporation AmeriCorps grantee
whose average annual Corporation
program grant is less than $500,000, or
an Education Award Program grantee,
you must conduct an internal evaluation
of your program, and you must submit
the evaluation with any application to
the Corporation for competitive funds as
required in § 2522.730 of this subpart.
(d) The Corporation may, in its
discretion, supersede these
requirements with an alternative
evaluation approach, including one
conducted by the Corporation at the
national level.
(e) Grantees must cooperate fully with
all Corporation evaluation activities.
§ 2522.720 How many years must my
evaluation cover?
(a) If you are a State formula grantee,
you must conduct an evaluation, as your
State commission requires.
(b) If you are a State competitive or
direct Corporation grantee, your
evaluation must cover a minimum of
one year but may cover longer periods.
§ 2522.730 How and when do I submit my
evaluation to the Corporation?
(a) If you are an existing grantee
recompeting for AmeriCorps funds for
the first time, you must submit a
summary of your evaluation efforts or
plan to date, and a copy of any
evaluation that has been completed, as
part of your application for funding.
(b) If you again compete for
AmeriCorps funding after a second
three-year grant cycle, you must submit
the completed evaluation with your
application for funding.
§ 2522.740 How will the Corporation use
my evaluation?
The Corporation will consider the
evaluation you submit with your
application as follows:
(a) If you do not include with your
application for AmeriCorps funding a
summary of the evaluation, or the
evaluation itself, as applicable, under
§ 2522.730, the Corporation reserves the
right to not consider your application.
(b) If you do submit an evaluation
with your application, the Corporation
will consider the results of your
evaluation in assessing the quality and
outcomes of your program.
I 8. Add subpart F to part 2522
consisting of § 2522.900 through
§ 2522.950, to read as follows:
Subpart F—Program Management
Requirements for Grantees
Sec.
2522.900 What definitions apply to this
subpart?
2522.910 What basic qualifications must an
AmeriCorps member have to serve as a
tutor?
If the tutor is:
Subpart F—Program Management
Requirements for Grantees
§ 2522.900
subpart?
What definitions apply to this
Tutor is defined as someone whose
primary goal is to increase academic
achievement in reading or other core
subjects through planned, consistent,
one-to-one or small-group sessions and
activities that build on the academic
strengths of students in kindergarten
through 12th grade, and target their
academic needs. A tutor does not
include someone engaged in other
academic support activities, such as
mentoring and after-school program
support, whose primary goal is
something other than increasing
academic achievement. For example,
providing a safe place for children is not
tutoring, even if some of the program
activities focus on homework help.
§ 2522.910 What basic qualifications must
an AmeriCorps member have to serve as a
tutor?
Then the tutor must meet the following qualifications:
(a) Is considered to be an employee of the Local Education
Agency or school, as determined by State law.
(b) Is not considered to be an employee of the Local Education Agency or school, as determined by State law.
§ 2522.920 Are there any exceptions to the
qualifications requirements?
The qualifications requirements in
§ 2522.910 of this subpart do not apply
to a member who is a K–12 student
tutoring younger children in the school
or after school as part of a structured,
school-managed cross-grade tutoring
program.
§ 2522.930 What is an appropriate
proficiency test?
(a) If a member serving as a tutor does
not have a high-school diploma or its
equivalent, or a higher degree, the
member must pass a proficiency test
that the program has determined
effective in ensuring that members
serving as tutors have the necessary
skills to achieve program goals.
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2522.920 Are there any exceptions to the
qualifications requirements?
2522.930 What is an appropriate
proficiency test?
2522.940 What are the requirements for a
program in which AmeriCorps members
serve as tutors?
2522.950 What requirements and
qualifications apply if my program
focuses on supplemental academic
support activities other than tutoring?
16:52 Jul 07, 2005
Jkt 205001
Paraprofessional qualifications under No Child Left Behind Act, as required in 34
CFR 200.58
(1)(i) High School diploma or its equivalent, or a higher degree OR
(ii) Proficiency test, as described in § 2522.930 of this subpart; and
(2) Successful completion of pre- and in-service specialized training, as required
in § 2522.940 of this subpart.
(b) The program must maintain in the
member file of each member who takes
the test documentation on the
proficiency test selected and the results.
§ 2522.940 What are the requirements for a
program in which AmeriCorps members
serve as tutors?
A program in which members engage
in tutoring for children must:
(a) Articulate appropriate criteria for
selecting and qualifying tutors,
including the requirements in
§ 2522.910 of this subpart;
(b) Identify the strategies or tools it
will use to assess student progress and
measure student outcomes;
(c) Certify that the tutoring
curriculum and pre-service and inservice training content are high-quality
and research-based, consistent with the
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instructional program of the local
educational agency or with State
academic content standards;
(d) Include appropriate member
supervision by individuals with
expertise in tutoring; and
(e) Provide specialized high-quality
and research-based, member pre-service
and in-service training consistent with
the activities the member will perform.
§ 2522.950 What requirements and
qualifications apply if my program focuses
on supplemental academic support
activities other than tutoring?
(a) If your program does not involve
tutoring as defined in § 2522.900 of this
subpart, the Corporation will not
impose the requirements in § 2522.910
through § 2522.940 of this subpart on
your program.
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(b) At a minimum, you must articulate
in your application how you will
recruit, train, and supervise members to
ensure that they have the qualifications
and skills necessary to provide the
service activities in which they will be
engaged.
PART 2540—GENERAL
ADMINISTRATIVE PROVISIONS
1. The authority citation for part 2540
is revised to read as follows:
I
Authority: EO 13331, 69 FR 9911.
2. Amend § 2540.100 by redesignating
paragraphs (f)(2) through (f)(5) as (f)(3)
through (f)(6) respectively, and adding a
new paragraph (f)(2) to read as follows:
I
§ 2540.100 What restrictions govern the
use of Corporation assistance?
*
*
*
*
*
(f) * * *
(2) An organization may not displace
a volunteer by using a participant in a
program receiving Corporation
assistance.
*
*
*
*
*
PART 2550—REQUIREMENTS AND
GENERAL PROVISIONS FOR STATE
COMMISSIONS AND ALTERNATIVE
ADMINISTRATIVE ENTITIES
1. Revise the heading of part 2550 to
read as set forth above.
I 2. The authority citation for part 2550
is revised to read as follows:
I
Authority: 42 U.S.C. 12638.
I
3. Amend § 2550.10 as follows:
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39607
a. By revising paragraph (b);
b. By revising paragraph (c);
c. By revising the last sentence of
paragraph (d).
The revisions read as follows:
§ 2550.30 How does a State decide
whether to establish a State commission or
an alternative administrative entity?
§ 2550.10
I
I
I
I
What is the purpose of this part?
*
*
*
*
*
(b) To be eligible to apply for program
funding, or approved national service
positions, each State must establish a
State commission on national and
community service to administer the
State program grant making process and
to develop a State plan. The Corporation
may, in some instances, approve an
alternative administrative entity (AAE).
(c) The Corporation will distribute
grants of between $125,000 and
$750,000 to States to cover the Federal
share of operating the State
commissions or AAEs.
(d) * * * This part also offers
guidance on which of the two State
entities States should seek to establish,
and it explains the composition
requirements, duties, responsibilities,
restrictions, and other relevant
information for State commissions and
AAEs.
§ 2550.20
[Amended]
4. Amend § 2550.20 by removing
paragraph (o).
I 5. Amend § 2550.30 by revising the
section heading to read as set forth
below, removing paragraphs (c) and (d),
and redesignating paragraph (e) as
paragraph (c).
I
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*
*
§ 2550.40
*
*
*
[Amended]
6. Amend § 2550.40 by removing
paragraph (c).
§ 2550.70
[Removed and reserved]
7. Remove and reserve § 2550.70.
8. Amend § 2550.80 as follows:
I a. Revise the first two sentences of the
introductory text; and
I b. Revise paragraph (j) to read as
follows:
I
I
§ 2550.80
entities?
What are the duties of the State
Both State commissions and AAEs
have the same duties. This section lists
the duties that apply to both State
commissions and AAEs—collectively
referred to as State entities. * * *
*
*
*
*
*
(j) Activity ineligible for assistance. A
State commission or AAE may not
directly carry out any national service
program that receives financial
assistance under section 121 of the
NCSA or title II of the DVSA.
*
*
*
*
*
Dated: June 28, 2005.
David Eisner,
Chief Executive Officer.
[FR Doc. 05–13038 Filed 7–1–05; 8:45 am]
BILLING CODE 6050–28–P
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Agencies
[Federal Register Volume 70, Number 130 (Friday, July 8, 2005)]
[Rules and Regulations]
[Pages 39562-39607]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-13038]
[[Page 39561]]
-----------------------------------------------------------------------
Part II
Corporation for National and Community Service
-----------------------------------------------------------------------
45 CFR Parts 2510, 2520, 2521, etc.
AmeriCorps National Service Program; Final Rule
Federal Register / Vol. 70, No. 130 / Friday, July 8, 2005 / Rules
and Regulations
[[Page 39562]]
-----------------------------------------------------------------------
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE
45 CFR Parts 2510, 2520, 2521, 2522, 2540 and 2550
RIN 3045-AA41
AmeriCorps National Service Program
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Corporation for National and Community Service
(hereinafter the ``Corporation'') is amending several provisions
relating to the AmeriCorps national service program, and adding rules
to clarify the Corporation's requirements for program sustainability,
performance measures and evaluation, capacity-building activities by
AmeriCorps members, qualifications for tutors, and other requirements.
DATES: This final rule is effective September 6, 2005, with specific
sections becoming applicable according to the implementation schedule
in part VII of the SUPPLEMENTARY INFORMATION section.
FOR FURTHER INFORMATION CONTACT: Amy Borgstrom, Associate Director for
Policy, Department of AmeriCorps, Corporation for National and
Community Service, 1201 New York Avenue, NW., Washington, DC 20525,
(202) 606-5000, ext. 132. T.D.D. (202) 606-3472. Persons with visual
impairments may request this rule in an alternative format.
SUPPLEMENTARY INFORMATION:
List of Topics
I. Background
II. Preliminary Public Input and Public Comments
III. Terminology Change: FTE to MSY
IV. Highlights of Proposed Rule
V. Broad Policy Issues
A. Sustainability Generally
B. Intermediaries
C. Education Award Program
D. Professional Corps
VI. Specifics of Final Rule and Analysis of Comments
A. Definitions of ``Target Community'' and ``Recognized
Equivalent of a High-School Diploma''
B. Member Service Activities
C. Increase in Required Grantee Share of Program Costs
D. Cap on Childcare Payments and Corporation Share of Health
Care Benefits
E. AmeriCorps Grants Selection Process and Criteria
F. Corporation Cost per Member Service Year (MSY)
G. Performance Measures and Evaluation
H. Qualifications for Members Serving as Tutors and Requirements
for Tutoring Programs
I. Non-Displacement of Volunteers
J. Transitional Entities
K. State Commissions Directly Operating Programs
VII. Effective Dates
VIII. Non-Regulatory Issues
IX. Rulemaking Analyses and Notices
I. Background
Under the National and Community Service Act of 1990, as amended
(hereinafter ``NCSA, or the Act,'' 42 U.S.C. 12501 et seq.), the
Corporation makes grants to support community service through the
AmeriCorps program. In addition, the Corporation, through the National
Service Trust, provides education awards to, and certain interest
payments on behalf of, AmeriCorps participants who successfully
complete a term of service in an approved national service position.
On February 27, 2004, President Bush issued Executive Order (E.O.)
13331 aimed at making national and community service programs better
able to engage Americans in volunteering, more responsive to State and
local needs, more accountable and effective, and more accessible to
community organizations, including faith-based organizations. The E.O.
directed the Corporation to review and modify its policies as necessary
to accomplish these goals.
In the Consolidated Appropriations Act for 2004, Congress directed
the Corporation to reduce the Federal cost per participant in the
AmeriCorps program and to increase the level of matching funds and in-
kind contributions provided by the private sector. The Conference
Report accompanying the 2004 Consolidated Appropriations Act directed
the Corporation to engage in notice and comment rulemaking around the
issue of ``sustainability.''
On September 23, 2003, the Corporation's Board of Directors (the
Board) had directed the Corporation to ``undertake rulemaking to
establish regulations on significant issues, such as sustainability and
the limitation on the Federal share of program costs, consistent with
any applicable directives from Congress.'' On August 12, 2004, the
Corporation published a Notice of Proposed Rulemaking (NPRM) in the
Federal Register for public comment (69 FR 50124).
This rulemaking process is one of two the Corporation initiated in
2004, and addresses several significant and time-sensitive issues. The
Corporation intends to implement these changes over the next year, with
some taking effect in the AmeriCorps 2005 program year, and the
remainder in the 2006 program year (See section VII. Effective Dates).
The second process stemmed from a recommendation by the Board's
Taskforce on Grant-making and is largely an effort to streamline and
improve our current grant-making processes. That effort is already
underway, and we plan to issue a Notice of Proposed Rulemaking for that
purpose later this year. The two rulemakings address distinct and
separate issues.
II. Preliminary Public Input and Public Comments
A. Preliminary Public Input
On March 4, 2004, the Corporation published a notice in the Federal
Register inviting informal preliminary public input in advance of
rulemaking (69 FR 10188). The notice outlined the general topics the
Corporation was interested in addressing through rulemaking and posed
questions for the public to consider in providing input. Following the
notice, the Corporation held four conference calls and five public
meetings across the country in Columbus, Ohio; Seattle, Washington;
Boston, Massachusetts; Washington, DC; and Arlington, Texas, to frame
the issues and collect public input. Through the hearings, conference
calls, and e-mail and paper submissions, the Corporation received
comments from nearly 600 individuals and organizations, and used this
input to inform the drafting of the proposed rule.
B. 60-Day Comment Period
In the Federal Register of August 12, 2004 (69 FR 50122), the
Corporation published the proposed rule with a 60-day comment period.
In addition to accepting comments in writing, the Corporation held
three conference calls and five public meetings across the country in
Philadelphia, Pennsylvania; Atlanta, Georgia; Portland, Oregon; Denver,
Colorado; and Chicago, Illinois. During the public comment period, the
Corporation received 217 written comments and 78 oral comments from
grantees, foundations, State governments, non-profits, Members of
Congress, and other interested individuals and organizations.
The comments express a wide variety of views on the merits of
particular sections of the proposed regulations, as well as some
broader policy statements and issues. Acknowledging that there are
strong views on, and competing legitimate public policy interests
relating to, the issues in this rulemaking, the Corporation has
carefully considered all of the comments on the proposed regulations.
[[Page 39563]]
The Corporation has summarized below the major comments received on
the proposed regulatory changes, and has described the changes we made
in the final regulatory text in response to the comments received. In
addition to the more substantive comments discussed below, the
Corporation received some editorial suggestions, some of which we have
adopted and some of which we have not. The Corporation has made a
number of other minor editorial changes to better organize or structure
the regulatory text. Finally, the Corporation received a number of
comments on issues outside the scope of the proposed rule, which the
Corporation does not address in the discussion that follows.
III. Terminology Change: FTE to MSY
In the proposed rule, the Corporation defined cost per full-time
equivalent (FTE), and referred to cost per FTE throughout the
regulation. Until now, the Corporation has used the term FTE to
describe the number of service years performed by a full-time
AmeriCorps member (each service year being equal to 1,700 hours of
service). Because the term FTE is most often associated with budgeting
for employee payroll, we are replacing ``FTE'' with ``Member Service
Year'' (MSY). We think this term more accurately describes units of
AmeriCorps service, and we want to avoid any misimpression that
AmeriCorps members are Federal employees. Consequently, the Corporation
has amended the final rule to refer to cost per MSY, and uses MSY and
cost per MSY throughout this final rule in lieu of FTE and cost per
FTE, respectively.
IV. Highlights of Final Rule
This final rule includes a targeted series of reforms designed to
strengthen the impact, efficiency, and reach of AmeriCorps, our
AmeriCorps grantees, and the Corporation. Our primary objectives are
to:
Create a framework for long-term growth and sustainability
of the AmeriCorps program as a public-private partnership;
Provide consistency, reliability, and predictability for
AmeriCorps grantees;
Enhance the measurable positive impact of the AmeriCorps
program on:
--Communities and beneficiaries that receive service;
--Non-profit organizations and community infrastructures that host
service; and
--AmeriCorps members who serve;
Resolve longstanding issues relating to Federal share,
Corporation cost per member service year (MSY), and sustainability of
AmeriCorps projects to minimize uncertainty about annual grantee
funding levels and restrictions;
Assure fiscal and programmatic accountability and
effective performance measurement for the Corporation, AmeriCorps, and
grantees; and
Generate additional and wider varieties of grant applicant
organizations. In addition, wherever possible, this rule reflects the
Corporation's determination to:
Eliminate unnecessary paperwork burdens on Corporation
grantees;
Strengthen AmeriCorps' ability to respond to State and
local needs;
Engage more community volunteers;
Include community organizations, including faith-based
organizations, in all Corporation programs; and
Invigorate the competitive grant-making process.
Existing and potential AmeriCorps grantees are a strong and diverse
group of talented and innovative forces for change, with different
needs, circumstances, and abilities. Therefore, the Corporation has
endeavored, throughout these regulations, to:
Use competitive criteria to foster and encourage, rather
than require, desired actions or activities; and
Tailor implementation of the regulatory requirements based
on the unique goals and circumstances of grantees, including limited
waivers if appropriate.
The Corporation has focused reforms in the final rule on four main
areas: Sustainability of AmeriCorps programs, including decreasing
grantee reliance on Federal resources and decreasing Corporation costs
per MSY; Grant selection criteria; Performance measures and evaluation;
and Tutor qualifications and other requirements for tutoring programs.
The proposed rule also included a discussion in some detail of several
non-regulatory issues including the Corporation's goal of streamlining
continuation applications and adjusting grant cycles. As discussed in
the proposed rule, the Corporation is undertaking both those reforms
outside of these regulations.
The Corporation is publishing these regulations pursuant to the
Chief Executive Officer's statutory authority to ``prescribe such rules
and regulations as are necessary or appropriate to carry out the
national service laws.'' 42 U.S.C. 12651c(c). The Corporation intends
to monitor the impact of this final rule on grantees.
The next section of this preamble, section V, addresses
sustainability, and specific issues concerning intermediaries,
Education Award Program grantees, and professional corps programs.
Section VI includes a section-by-section summary and analysis of the
major comments we received and the Corporation's response. Section VII
of this preamble addresses implementation of the final rule. Section
VIII addresses several non-regulatory policy issues the Corporation
considered in light of the public input and comments we received.
V. Broad Policy Issues
A. Sustainability
Many of the comments the Corporation received addressed the issue
of sustainability. Many suggested that the Corporation had too narrowly
defined sustainability in the proposed rule as only including financial
or monetary measures, and had given insufficient consideration to other
measures of sustainability, such as community support and partnerships,
and program quality. Those commenting on the definition generally
suggested various revisions on the same theme of defining
sustainability broadly and beyond just financial commitments. Two
commenters suggested that sustainability be measured by criteria that
capture capacity in terms of program quality and cost structure, fiscal
and community support, partnerships, and leveraged resources, including
volunteer hours and in-kind goods and services. The Corporation agrees
that sustainability includes many elements beyond cost, and has
modified the rule language in several places to bring greater emphasis
on multiple and diverse measures of sustainability.
The Corporation did not intend for the proposed rule to define
sustainability solely in terms of money, nor did we intend for
sustainability itself to be viewed as the only factor in the grant
selection process. The Corporation's intent was to broadly define
sustainability and to specify measures of sustainability in the grant
selection criteria and program requirements. At the same time, the
Corporation does believe that decreasing the federal share of costs for
AmeriCorps programs is essential to sustainability, and we have, thus,
retained increased matching requirements as a key part of our effort to
boost program sustainability.
As stated in the proposed rule, the Corporation's annual
appropriation and its authorizing legislation, as well as E.O. 13331,
support this approach to sustainability. In our annual appropriations
act each year dating back
[[Page 39564]]
to fiscal year 1996, and most recently in the Consolidated
Appropriation Act for fiscal year 2005, Congress directed the
Corporation to ``increase significantly the level of matching funds and
in-kind contribution provided by the private sector,'' and ``reduce the
total Federal costs per participant in all programs.'' Section
133(c)(3) of the Act requires the Corporation to include in its
selection criteria the sustainability of the national service program,
based on evidence such as the existence of strong and broad-based
community support for the program, and of multiple funding sources or
private funding for the program. Section 130(b)(3) of the Act
authorizes the Corporation to ask an organization ``re-competing'' for
funding after a three-year initial grant period to include a
``description of the success of the programs in reducing their reliance
on Federal funds.'' In addition, E.O. 13331 directs that ``national and
community service programs should leverage Federal resources to
maximize support from the private sector and from State and local
governments.''
While the Corporation is committed to meeting these goals, in our
view, they do not require imposing across-the-board limitations on the
number of years an organization may receive funds, particularly given
the many organizations providing valuable infrastructure and experience
that enable national and community service to continue to thrive across
the country. At the national level, the Corporation continues to
believe it unnecessary to disqualify an organization from receiving
Federal funding based on the number of years that organization has
received funding. To do so would ultimately result in a loss of some of
the strongest organizations with the capacity, infrastructure, and
experience to provide high-quality service and deliver results that
strengthen and expand national and community service. We do believe,
however, that the majority, if not all, of the organizations that
receive Corporation funds can and should increase their share of
program costs as their programs mature.
Through increased sustainability, the Corporation seeks to expand
the national service field and provide new organizations the
opportunity to participate in national and community service programs.
The Corporation also seeks to strengthen the capacity of existing
national and community service programs by promoting an expansion and
diversification of their non-Corporation funding sources, and
strengthening the competitive framework. At the same time, the
Corporation wants to treat grantees fairly and equitably and avoid
impairing their independence, operating flexibility, and autonomy.
As described in more detail below, the Corporation's strategy to
increase organizational sustainability and expand national and
community service has six main elements:
1. Incorporates the broad spectrum of sustainability elements
throughout the Corporation's grant selection criteria and program
requirements.
2. Increases the emphasis in the selection process on program cost-
effectiveness, including using Corporation cost per MSY as one of
several measures of cost-effectiveness.
3. Increases, based on a predictable schedule and incremental
scale, the grantee share of program costs to a 50 percent overall level
by the 10th year in which an organization receives AmeriCorps funding
for the same program. Programs in severely economically distressed or
rural areas are eligible to apply for permission to meet an alternative
match schedule, which would increase their grantee share to a 35
percent overall level by the 10th year in which an organization
receives AmeriCorps funding for the same program.
4. Requires State commissions to develop and implement a
sustainability approach as part of their oversight function.
5. Targets a percentage of non-continuation AmeriCorps State and
national grant funds each year for new applicants.
6. Provides technical support and limited exceptions to
organizations that demonstrate hardship in meeting the increasing match
requirements.
With the exception of the fourth and fifth elements, which are not
included in the regulatory language and which we address immediately
hereafter, the individual section discussions that follow in part VI
address each of the other elements of sustainability in more detail.
State Commission Sustainability Approaches (Sec. 2550.80(a)(3) in
Proposed Rule)
Part of the Corporation's sustainability strategy is to build upon
what some States are already accomplishing in the sustainability arena.
The Corporation understands that roughly 25 percent of the State
commissions already have written sustainability policies or approaches
through which they promote sustainability and encourage new programs in
their States. Some States, for example, gradually and predictably
reduce their subgrantees' Corporation cost per MSY over 12 years, to
allow the commission to invest resources in new programs and encourage
on-going programs to develop efficiencies and enhance community
support. One State commission requires, among other things, that its
subgrantees develop their own sustainability plans and increase the
subgrantee share of program operating costs over a seven-year period to
75 percent. Some States, in addition to requiring a small increase in
program share of member support costs over a three-year period,
actively solicit private donations to use, in part, to help local
AmeriCorps programs develop relationships with corporate donors and
increase private support. The Corporation praises these efforts and
encourages State commissions to consider these and other approaches to
promote program sustainability in their States.
In an effort to promote these State sustainability efforts, the
proposed rule required each State to describe its sustainability
approach in its State-wide service plan.
Several commenters expressed confusion regarding the proposed
requirement. One viewed this provision as requiring States to duplicate
the new Federal sustainability and matching regulatory requirements.
One State commission indicated that it may develop additional
sustainability requirements for programs in its State, but did not wish
to report those requirements to the Corporation. Another commission
supported the development of local sustainability plans for States, but
sought clarifying language that would leave room for States to
determine sustainability for themselves.
The Corporation supports the efforts that States are making towards
sustainability in their respective States. Furthermore, the Corporation
notes that State commissions may generally choose to impose more
stringent requirements on State subgrantees than the Corporation's
requirements. The Corporation's intent in proposing the reporting
requirement was to ensure that each State engage in meaningful
discussions about how it should manage its portfolio to maximize long-
term impact of programs in the State. The Corporation expects State
commissions to consider, in developing their sustainability plans,
whether they should add any sustainability requirements to the
Corporation's minimum requirements, as well as what strategies the
State may use to develop capacity and sustainability of projects and
service in the State.
[[Page 39565]]
The Corporation has now concluded that the State-wide service plan
(formerly ``unified State plan'') is not necessarily the best mechanism
for obtaining this information. Rather, the Corporation believes that
the most efficient way for commissions to report on their
sustainability plans is through their administrative funds application.
The Corporation plans to add one or more questions to the
administrative application through which States will report their
sustainability plan efforts. The Corporation is, therefore, removing
from the final rule the requirement that State commissions submit a
sustainability plan to the Corporation. Paragraph (a)(3) of section
2550.80 in the proposed rule has been deleted.
Funds Targeted for New Programs
The Corporation anticipates annually targeting a percentage of
AmeriCorps funds for grants to new applicants. To give us the ability
to manage our nationwide portfolio and ensure the appropriate mix of
programs, the Corporation will determine the category of applicants
eligible to receive the targeted funds annually and announce it in the
relevant funding announcement.
The target amount will vary, rather than be a fixed amount that the
Corporation must use for new programs each year. In some years, the
Corporation may receive enough high-quality new program applications to
meet or even exceed the target, and in other years, if the new program
applications are not of sufficient quality to merit funding, the number
of new programs funded may be lower than the amount targeted for that
purpose. The Corporation will, to the maximum extent possible, announce
the amount targeted for new programs prior to the submission deadline.
One commenter agreed with the Corporation's efforts to support new
programs, but expressed concern that this support should not lead to
replacing high-quality existing programs with new programs. This
commenter supported the Corporation setting aside funding for new
programs only under limited circumstances, including: (1) A year when
``new'' funding represents the majority of the funding available for
new and recompeting programs; or (2) a year when there is a substantial
amount of new funding made available through an increase in
appropriations for AmeriCorps grants of 10 percent or more. In
addition, the commenter supported grants awarded out of set-aside funds
based on the results of a ``truly competitive'' process.
The Corporation disagrees with this commenter's suggestions. The
Corporation will determine the target percentage annually based on the
availability of appropriations and the projected number of recompeting
applications, and publish this information, including posting it on the
Web site at www.nationalservice.gov, in advance of the selection
process. The Corporation will not, however, tie itself now to the
specific parameters the commenter suggests. The Corporation will ensure
that the process for selecting new programs is competitive and results
in the selection of high-quality proposals, as for all its AmeriCorps
grant competitions.
Several commenters did not support targeting funds for new
programs. Other commenters noted that competition is the best way to
increase the number and diversity of organizations funded over time.
The Corporation views targeting funds for new programs as an important
incentive for new organizations to consider applying for AmeriCorps
funds, when they otherwise might not. The Corporation acknowledges that
its legislative requirements can appear daunting to organizations
unfamiliar with AmeriCorps or new to national and community service,
particularly when competing with existing organizations that have had
the opportunity to learn from experience. The Corporation therefore
hopes that, by targeting funds for new programs, more new organizations
will apply, thereby increasing the likelihood that more new programs
will receive funding. The Corporation will award all of its AmeriCorps
funds, including those targeted for new programs, through rigorous
competition, to ensure that we fund the best possible programs that
will demonstrate strong results and help address our communities' unmet
needs.
One commenter asked whether the Corporation would announce the
amount we would target for new programs before the selection of
grantees or prior to the submission deadline. While the Corporation
will generally announce the amount of funds we will target for new
programs before the submission deadline, in some years, we may not
receive our appropriation until close to the application deadline or
after applications are due. In that case, the Corporation would
announce the amount targeted for new programs as soon as possible after
receiving our annual appropriation.
Several commenters asked that the Corporation specify the annual
percentage, or at the very least the maximum annual percentage we will
target for new programs. The Corporation cannot specify in this rule
how much--if any--we will target for new programs each year because the
target amount will depend each year on the level of our annual
appropriation, as well as the number of continuation programs and the
level of their respective grant requests.
One commenter asked whether States would be required to set-aside a
percentage of their formula funds for new programs. The Corporation
will not require States to set aside or target formula funds for new
programs, although a State may choose to do so.
Another commenter suggested the Corporation hold a competition to
determine the best quality programs before targeting money for new
programs. The Corporation intends only to fund high-quality programs
and does not believe it necessary to determine the quality of
applications through a separate process. As discussed above, the amount
the Corporation annually targets for new programs will not be a fixed
amount. If the Corporation has any remaining funds from the amount
allocated for new high-quality programs that year, the Corporation will
make these funds available to recompeting and continuation grantees.
Other Sustainability Issues
Several commenters expressed concern that the Corporation's
proposed sustainability strategy may in fact jeopardize programs in
low-income and economically-distressed regions of the country. As
discussed more fully in the section dealing with increased grantee
share, the final rule accommodates programs located in rural or
severely economically-distressed areas of the country that are unable
to meet the higher match requirements by allowing them to request a
waiver that would qualify them for an alternative lower match
requirement. The rule also includes programs in rural and severely
economically-distressed areas in the list of programs eligible for
special consideration in the competitive selection process.
One commenter expressed concern that fundraising costs are
currently not included in the budgets submitted to the Corporation,
obscuring the true cost of doing business as an AmeriCorps program.
This commenter suggested that, given the increased emphasis on program
fundraising and increased match, the Corporation request an exception
from the Office of Management and Budget to allow development costs to
count as match or be reimbursed. It is government-wide Federal policy
that fundraising costs are not reimbursable, and the Corporation can
find no basis upon which it may deviate from that policy. Many other
[[Page 39566]]
Federal grant programs require a 50 percent match without corresponding
OMB waivers relating to development costs.
Another commenter suggested that the Corporation apply different,
presumably less rigorous, sustainability requirements and measures to
``stand alone'' AmeriCorps programs--that is, organizations whose sole
purpose is to carry out AmeriCorps. Again, the Corporation does not
find sufficient merit to the suggestion to make a change in the final
rule. Sustainability is one of the core principles of this rule. While
the final rule carves out some limited exceptions to the sustainability
requirements, the characteristics of a ``stand-alone'' AmeriCorps
program are not sufficiently different from other AmeriCorps programs
to warrant different treatment. Moreover, the Corporation wants to
avoid creating a disincentive for an organization to diversify its
activities.
In several places in this final rule, the Corporation makes a
distinction between compliance with a requirement and performance under
the competitive selection criteria. For example, the final rule
requires programs to recruit or support volunteers, unless the
Corporation waives the requirement. At the same time, the selection
criteria for AmeriCorps grants include volunteer recruitment and
support as a competitive criterion. A proposal that does not include
volunteer recruitment or support will potentially score lower in that
category, regardless of whether, ultimately, the Corporation waives the
volunteer recruitment or support requirement when making an award.
Similarly, in the area of match, the Corporation is establishing
minimum requirements for grantees that the Corporation will enforce,
generally upon closing out a grant. If a grantee has not met its
minimum required match, the grantee will have to repay funds to the
Corporation. The selection criteria, on the other hand, look at match
also from a performance perspective: An organization's failure to meet
its budgeted match may negatively impact its success in the competitive
process, but will not translate into a requirement that the
organization repay funds. When considering the final rule, one should
bear in mind this distinction between compliance and performance.
The Corporation believes that its approach represents a fair,
equitable, and authoritative resolution of the issue of programmatic,
organizational, and financial sustainability. The rules are authorized
by, and consistent with, our enabling legislation, and support our
goals of supporting and strengthening high-quality programs while
leveraging Federal resources to achieve the greatest benefit possible
for our nation's communities. Predictability and consistency are
crucial elements of this rulemaking. Thus, we seek to provide clear
guidance to our grantees on our long-term expectations for
sustainability, which we believe conclusively resolves the issue.
B. Intermediaries
The Corporation received significant public comment regarding
intermediaries and, in particular, the potential effect on those
entities of efforts to promote sustainability. There is, and should
continue to be, a prominent place for intermediaries in the national
and community service portfolio, particularly given their important
role in reaching smaller community organizations, including faith-based
organizations. The Corporation recognizes that many intermediary models
include a regular infusion of new sites, which, as with any new
program, may have higher costs initially. In designing the selection
criteria, the Corporation has explicitly recognized the potentially
higher cost of some intermediary models.
One commenter suggested that the Corporation define
``intermediary'' as a program that ``places members in community-based
and faith-based organizations in specific communities.'' This commenter
indicated that these intermediary model programs are more expensive
because they take on new partnerships each year and must manage
multiple partnerships. The higher relative cost of these intermediary
models should, according to this commenter, be recognized in the
selection criteria for cost-effectiveness. As discussed in the
selection criteria below, the cost-effectiveness criteria specifically
take into account, among other things, the higher relative costs of
programs that either bring on new sites or engage or serve difficult-
to-reach populations. As far as defining ``intermediary,'' the
suggested definition is, based on the Corporation's experience, too
imprecise. The Corporation has spent considerable effort examining
intermediaries and has determined that its portfolio of grantees
includes many different models of intermediary, such that including a
cost-effectiveness criterion for a multi-faceted category of
organizations would not be appropriate or workable.
The Corporation has set matching requirements generally at the
grantee or parent organization level, rather than at the member
placement or service site level, and we have not adjusted the matching
requirements based on the proportion of new sites in any given year. We
believe that establishing the matching requirements at the parent
organization level gives greater flexibility to intermediaries to
manage and achieve a healthy mix of new and established sites. As
discussed more fully below in section VI(C), the Corporation is
sensitive to the fact that the increased match requirements may create
obstacles for some intermediary organizations. In particular, the
Corporation is concerned about intermediary organizations that place
members in small and new grass-roots organizations in needy
communities, and rely on those communities to contribute matching
resources to the intermediary in order to participate.
C. Education Award Programs (EAP)
The Education Award Program (EAP) allocates education awards to
national, State and local community service programs that can support
most or all of the costs associated with managing the service of
AmeriCorps members from sources other than the Corporation. Several
commenters recommended that the final rule clarify the extent to which
its provisions apply to Education Award Programs (EAP). One commenter
recommended that EAP grantees be exempted from all ``irrelevant
sections,'' including those referring to match generation, volunteer
generation, evaluation, and health care.
The final rule explicitly excludes Education Award Program grantees
from its provisions where necessary, and as described herein.
EAP--Sustainability and Cost Effectiveness
Several commenters opined that the discussion of sustainability and
its related implementation simply should not apply to EAP grantees.
These commenters believe that EAP programs are the epitome of
sustainability, because they already manage programs with minimal
financial assistance from the Federal Government, other than the
education award that members receive for completing a term of service.
In particular, these commenters opposed using cost per MSY as a
selection criterion for Education Award Program grantees, as these
grantees receive fixed amount grants of $400 per MSY currently. Two
commenters indicated that EAP programs invest significant amounts of
non-Corporation resources in their programs, and they are concerned
that the Corporation has not recognized or rewarded that investment in
considering program sustainability.
[[Page 39567]]
In the final rule's selection criteria, the Corporation has
retained Corporation cost per MSY as an important factor to consider in
determining a program's cost-effectiveness for programs other than
Education Award Program grantees. For Education Award Program grantees,
the Corporation has included explicit language to make clear that
Corporation cost per MSY is not a factor in considering their cost-
effectiveness. However, other measures of cost-effectiveness will apply
to Education Award Program grants.
The Corporation agrees that the EAP program is a clear example of a
sustainable program from a financial perspective. The Corporation is
aware of the significant financial contribution and investment that
EAPs make in their programs and the relatively small amount of money
they receive from the Corporation. The question, in evaluating EAP
programs in the selection process, is the extent to which they can
demonstrate sustainability in other ways. For example, an EAP program
will fare better in the competitive process if it can show that its
program is having a sustainable impact in the community, or its members
are continuing to show, post-service, an ethic of service.
One commenter asked whether the current $400 cost per MSY for EAP
programs would be increased. Another commenter indicated that the
Corporation's reporting requirements have become increasingly
burdensome, while the cost per MSY for Education Award Programs has
steadily declined. Whether or not to increase the $400 cost per MSY is
outside the scope of this regulation. The Corporation, as indicated
below, is committed to streamlining its reporting requirements while
ensuring accountability and sustainability, and will continue to work
towards that goal for all its grantees.
EAP--Member Service Activities
Sections 2520.20 through 2520.55 of the final rule address
allowable member service activities, and include a requirement that
some component of each AmeriCorps program must involve recruiting or
supporting volunteers. As discussed in part VI, encouraging more
Americans to engage in service and volunteer activities is one of the
pillars of our sustainability goals. Like any other AmeriCorps
applicant, any EAP grantee that believes recruiting or supporting
volunteers would fundamentally alter its program model may apply for a
waiver of this requirement.
EAP--Non-Displacement of Volunteers
The proposed rule stated that the service of an AmeriCorps member
must complement, and may not displace, the service of other volunteers
in the community, including partial displacement such as reducing a
volunteer's hours. As discussed below in the section addressing the
non-displacement of volunteers provision (Sec. 2540.100), the
Corporation has amended that section to remove these particular
references to volunteer hours, in favor of a broader focus on
addressing unmet needs. The Corporation will enforce this rule for all
AmeriCorps programs, including EAP programs.
EAP--Performance Measures
The Corporation expects all its grantees, including EAP grantees,
to adhere to performance reporting requirements. Performance measures
are critical to demonstrating that national and community service
programs are having their intended impact in our communities.
EAP--Evaluation
The proposed rule clearly indicated that EAP grantees would not be
required to perform an independent evaluation of their programs. The
final rule, while not requiring an independent evaluation, will require
EAP grantees to perform an internal program evaluation, and submit that
evaluation with the appropriate recompete application. This provision
is consistent with the requirements in the NCSA.
D. Professional Corps
Professional Corps programs place members as teachers, nurses and
other health care providers, police officers, early childhood
development staff, engineers, or other professionals providing service
to meet unmet needs in communities with an inadequate number of such
professionals. Professional Corps programs pay 100 percent of the
member support costs, but receive operating funds and an allocation of
education awards for their members. Several commenters reiterated their
desire that the Corporation establish separate application guidelines
for professional corps programs to reflect the fact that they are
responsible for 100 percent of the benefits paid to AmeriCorps members,
and that their program model may be inconsistent with some of the
general program requirements, such as volunteer recruitment and
required training. The Corporation believes, however, that most program
requirements can and should apply to all AmeriCorps programs, including
Professional Corps programs, and therefore does not necessarily see a
need for separate guidelines. If a program demonstrates, in its funding
application, that its program design is incompatible with the
requirement to recruit or support volunteers, the Corporation will
consider waiving the requirement that programs recruit or support
volunteers.
In addition, the Corporation has already taken the extra step of
soliciting proposals for Professional Corps programs in a separate
NOFA, and envisions doing so again in the future. The Corporation
believes, however, that professional corps programs, particularly those
for which the cost is largely borne by sponsoring organizations, will
continue to compete well in all our AmeriCorps grant competitions. By
grouping similar program models together in our selection process, the
Corporation will ensure, to the maximum extent possible, that
professional corps programs are evaluated together. The Corporation
believes that all of these steps obviate the need for a separate set of
application guidelines for professional corps programs.
Several commenters asked whether the Corporation intends for all
teaching fellows programs to apply under a professional corps NOFA,
rather than as Education Awards programs. Professional corps may apply
under other applicable NOFAs, such as AmeriCorps State, National, or
EAP, in addition to any applicable Professional Corps only NOFA.
VI. Specifics of the Final Rule and Analysis of Comments
As discussed in more detail below, the final rule:
Defines the term ``target community'' as the geographic
community in which an AmeriCorps grant applicant intends to address an
identified unmet need.
Defines the term ``recognized equivalent of a high-school
diploma'' as including documents recognized for this purpose by the
U.S. Department of Education.
Clarifies the types of service activities in which
AmeriCorps members may engage and explains the parameters for grantees
and members to engage in capacity-building service activities,
including volunteer recruitment and support.
Increases, in an incremental and predictable fashion, the
grantee's required share of program costs to a 50 percent overall match
plateau over 10 years; provides alternative matching requirements for
programs located in rural and severely economically
[[Page 39568]]
distressed communities, increasing the grantee's required share of
program costs to a 35 percent overall match plateau over 10 years.
Codifies that the amount of childcare payments the
Corporation makes to an eligible provider on behalf of an AmeriCorps
member may not exceed the amount authorized under the Child Care and
Development Block Grant Act of 1990 (Pub. L. 101-508).
Codifies the grant selection process and criteria.
Clarifies how grantees are to calculate their budgeted
Corporation cost per member service year (MSY).
Codifies the Corporation's requirements for grantees to
establish performance measures and to evaluate program outcomes, and
establishes a grant amount threshold for required independent
evaluations.
Establishes qualifications for members serving as tutors
and requirements for tutoring programs.
Prohibits displacement of volunteers.
Removes obsolete references to ``transitional entities''
serving as State commissions on national and community service.
Broadens State commission flexibility to operate specified
national service programs directly.
A. Definition of ``Target Community'' and ``Recognized Equivalent of a
High-School Diploma'' (Sec. 2510.20)
Target Community
In the proposed rule, the Corporation defined the term ``target
community'' as the geographic community for which an AmeriCorps grant
applicant identifies an unmet human need. The Corporation assumed that
educational, environmental, and public safety needs were all subsumed
within the term ``human need.''
Two commenters interpreted this language as excluding educational,
environmental, and public safety needs from the definition. In order to
clarify our intent, the Corporation has amended the language to
specifically include educational, environmental, and public safety
needs (including disaster preparedness and response), in addition to
other human needs. The Corporation has also made technical changes to
the definition to make it clearer.
Recognized Equivalent of a High-School Diploma
In reading the comments on the proposed tutor requirements, the
Corporation concluded that grantees were not clear that the term
``high-school diploma or its equivalent'' means more than simply a
high-school diploma or a GED. For the sake of clarity, the Corporation
is including a technical amendment to Sec. 2510.20 to clearly define
what is a recognized equivalent to a high-school diploma. The
definition incorporates the Department of Education's definition of the
equivalent to a high-school diploma. Under the Department of
Education's regulations (34 CFR Sec. 600.2), the equivalent to a high-
school diploma includes not only a GED, but also (1) a State
certificate received by a student after the student has passed a State-
authorized examination that the State recognizes as the equivalent to a
high-school diploma; (2) an academic transcript of a student who has
successfully completed at least a two-year program that is acceptable
for full credit towards a bachelor's degree; or (3) for a person
seeking to enroll (or enrolled) in an educational program that leads to
at least an associate degree or its equivalent and who has not
completed high school but who excelled academically in high school,
documentation that the student excelled academically in high school and
has met the formalized, written policies of the institution for
admitting such students.
B. Member Service Activities on Behalf of the Organization (Sec. Sec.
2520.20 Through 2520.60)
Except for those member activities specifically prohibited in
sections 132 and 174 of the Act, as amended, the Corporation has broad
authority to determine appropriate service activities for AmeriCorps
members. In the proposed regulation, the Corporation largely codified
and clarified the Corporation's current guidelines and grant provisions
on this issue. Specifically, the proposed rule clarified that
AmeriCorps members may: (1) Perform direct service activities, and (2)
engage in other activities that build the organizational and financial
capacity of nonprofit organizations and communities, including
volunteer recruitment and certain fundraising activities.
Several commenters supported allowing AmeriCorps members to be
involved in capacity-building, including fundraising activities. Others
expressed concern that AmeriCorps may be diluting its mission by
allowing members to engage in capacity building activities, rather than
direct service exclusively. One commenter opposed members engaging in
anything other than direct service, on the basis that partner
organizations are providing matching resources for direct services
provided onsite, such as tutoring during the school day. Another
commenter expressed the hope that this policy of allowing member
capacity-building activities remain an opportunity for programs, but
not become a mandate.
The principal purpose of AmeriCorps is still direct service and
``getting things done'' in our communities and our country. With the
exception of the requirement that programs recruit or support
volunteers, the final rule does not require that programs allow members
to engage in any other capacity-building activities. The final rule
merely permits members to engage in such activities, at the discretion
of the program. That said, the Corporation believes that AmeriCorps
members and AmeriCorps funds have the ability to leverage resources and
increase the capacity of the organizations with, and the communities in
which, they serve. The Corporation sees no compelling reason to limit
members only to direct service, as valuable as that is, when they could
also be recruiting or supporting volunteers, helping to raise funds for
their projects, and helping to build sustainable service in their
communities. Because these activities promote sustainability, which is
one of the primary reasons for this rulemaking, the final rule remains
unchanged from the proposed rule in terms of permitting members to
engage in both direct service and capacity-building activities.
One commenter recommended adding K-12 education as a fifth example
under ``developing collaborative relationships with other organizations
working to achieve similar goals in the community'' in Sec.
2520.30(b)(4). The Corporation agrees that including K-12 education in
that section is appropriate, but believes that the broader category of
``local education agencies or organizations'' is the most appropriate
descriptor. Consequently, the Corporation has added ``local education
agencies or organizations'' as a fifth example in Sec. 2520.30(b)(4).
AmeriCorps Members Serving With Faith-Based Organizations
The Corporation received comments from several organizations about
AmeriCorps members serving with faith-based organizations. Of the
comments relating to matters in the proposed rule, one recommended that
the Corporation clarify the final rule to ensure that activities on
behalf of participating organizations meet statutory and constitutional
safeguards regarding religious activity. Specifically, this commenter
recommended that Sec. Sec. 2520.20 through 2520.65 be amended to
acknowledge the statutory restrictions on member activities. Another
[[Page 39569]]
commenter recommended that the Corporation develop and provide clear
guidance for AmeriCorps programs working with faith-based
organizations.
The redesignated section 2520.65 (formerly Sec. 2520.30) of the
regulations addresses AmeriCorps members' prohibited activities,
including those relating to religious activities. The Corporation
believes that these prohibitions are sufficiently clear, and further
that it would be outside the scope of this rulemaking process to amend
them at this time.
One commenter suggested that the regulations require faith-based
organizations that receive AmeriCorps funds to establish a separate
corporate structure to receive and segregate government funds and the
capacity-building activities thereby supported. The Corporation
disagrees with this suggestion. While an organization is free to
establish a separate account for its Corporation funds, it would be
unfair to require faith-based organizations to comply with these
additional burdens. Except for the Education Award Program, which
offers a modest fixed amount grant, the Corporation requires all its
grantees to track their Corporation funds separately and to ensure that
they use their Corporation funds only for reasonable and necessary
expenses and permissible program activities.
Volunteer Recruitment or Support (Sec. 2520.35)
One focus of Executive Order 13331 is leveraging Federal resources
``to enable the recruitment and effective management of a larger number
of volunteers than is currently possible.'' The proposed regulations
clearly directed that some component of an AmeriCorps grant must help
build the long-term capacity of nonprofit organizations and the
community by recruiting and supporting volunteers. While this has
implicitly been a requirement over the past two years, clarifying and
reinforcing this requirement in regulation is expected to encourage
more Americans to engage in service and volunteer activities, and
advance program goals.
One commenter stated that its new homeland security program was
successful because AmeriCorps became a tool for partnering with local
American Red Cross chapters to maximize the effectiveness of community
volunteers by offering them a structured, supervised and coordinated
volunteer experience.
On the other hand, several other commenters expressed reservations
about the proposed requirement that programs recruit or support
volunteers. One commenter stated that it would ``not be an effective
use of resources to pull AmeriCorps into volunteer recruitment,'' and
that the regulation should be broadened to allow AmeriCorps members to
support existing volunteer efforts, rather than requiring every program
to generate and recruit volunteers. The language in Sec. 2520.35 of
the proposed rule specifically gives programs the option of recruiting
or supporting volunteers--it does not require all programs to recruit
volunteers. Some programs, for example, may not be able to recruit
volunteers, but may be able to support volunteers recruited by other
organizations. The Corporation, therefore, has not changed the language
in this section of the final rule.
Several commenters stated that the recruitment, supervision, and
training of volunteers requires higher levels of training and
management skills than members generally have, and detracts from direct
service and service outcomes. One of these commenters suggested that
the Corporation encourage volunteer recruitment, rather than require
it. Another commenter stated that the Corporation should not stress
sheer numbers of volunteers to the detriment of quality service and
effectiveness. In particular, this commenter suggested that the
Corporation should guard against taxing the volunteer base beyond its
capacity, bearing in mind that all its streams of service, including
AmeriCorps State and National, AmeriCorps VISTA, Learn and Serve, as
well as Citizen Corps, America's Promise, and the Points of Light
Foundation, are recruiting from the same pool of potential volunteers.
As stated in the proposed rule, the Corporation does not intend for
this requirement to distract from an organization's mission, nor do we
expect grantees to replace direct service with volunteer generation and
other capacity-building activities. In most cases, direct service and
volunteer recruitment or support can complement each other to
strengthen programs and communities. When considering how an AmeriCorps
program can promote the effective involvement of volunteers, applicants
have the flexibility to determine the best way to enhance or build upon
the direct service goals of the program in which the AmeriCorps members
are serving and to propose capacity-building activities accordingly.
The Corporation strongly believes that most, if not all, programs can
support the goal of increasing and supporting volunteering in this
country.
As discussed in the proposed rule, however, the Corporation
recognizes that some program models, such as certain professional
corps, youth corps, and programs in some rural locations with a limited
volunteer pool, may not be able to include significant volunteer
recruitment or support in their program model, and the Corporation will
take these and other factors into account in considering requests to
waive the requirement that programs recruit or support volunteers.
The Corporation is maintaining the requirement that programs
recruit or support volunteers as currently drafted. We believe that
requiring programs to recruit or support volunteers is central to the
Corporation's mission of leveraging resources.
One commenter was concerned that many of the member activities
permitted by the proposed rule are currently activities performed
either by volunteers or employees. This commenter, therefore, read the
proposed rule as encouraging displacement of volunteers and employees.
In fact, the Corporation prohibits displacement of volunteers and
employees. The Corporation only funds programs whose activities add
value beyond what would occur in the absence of our funding. Any
program that simply replaces volunteers or staff with AmeriCorps
members performing the same activities will, by definition, be unable
to demonstrate that its program adds value and meets unmet needs in the
community.
One commenter saw a disparity between full-time programs and part-
time programs in terms of their ability to recruit and support
volunteers, and the potential for the Corporation to favor full-time
programs. This commenter's view was that a full-time program has more
resources upon which to draw when recruiting volunteers and thus an
advantage in the grant selection process. The Corporation does not
favor full-time over part-time programs, or vice versa. The Corporation
seeks to achieve the best use of its resources in light of priorities
and funding constraints. In applying its selection criteria, the
Corporation has sought to take into account similarities and
differences between programs, including part-time and full-time
programs. A program of members serving less than full-time would have
the opportunity to articulate in its application the challenges it
faces in meeting any particular requirement or selection criterion,
including the volunteer support requirement.
Several commenters asked whether a program in which AmeriCorps
teaching fellows guide K-12 students in a service-learning project
could count those students as volunteers for purposes of the volunteer
support
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component. These commenters said that most Teaching Fellows Programs
have a service-learning requirement and that, given the increasing use
of service-learning in K-12 schools as a way to connect academic
learning to service, it would be helpful to see this reflected in the
new rule. One commenter recommended that the section be renamed
``Volunteer Recruitment or Service Learning'' to ensure that AmeriCorps
won't be criticized for counting mandatory K-12 class activities as
``volunteer'' work.
The Corporation intends to interpret the requirement that programs
recruit or support volunteers broadly so as to allow a program to count
as volunteers any volunteer activity generated, supported, or
coordinated by its AmeriCorps members for purposes of requirement. A
program could therefore expect to count as volunteers students engaged
in service-learning projects under the supervision of AmeriCorps
members. The Corporation does not believe it is necessary to rename the
regulatory section to specifically include service-learning, as we will
broadly interpret the term ``volunteers,'' as used in this section.
Waiver of Requirement To Recruit or Support Volunteers
Several commenters requested that the Corporation clearly define
the method and timing for requesting a waiver from the requirement to
recruit or support volunteers, and implement it as part of a pre-
application process. Three commenters added that the rule should
clearly state that applying for a waiver will not negatively affect a
proposal's success in the grant selection process.
The Corporation views volunteer recruitment and support as both a
requirement and a competitive criterion in the grant selection process.
The Corporation expects that a program that believes it is unable to
fulfill the requirement to support or recruit volunteers will address
that inability in its application and thereby request a waiver from the
requirement. While a waiver request itself will not disadvantage an
applicant, failure to address volunteer recruitment or support at all
will be a disadvantage in the grant selection process. That said, the
extent to which a program recruits or supports volunteers is but one
criterion in the grant selection process--the Corporation does not
expect that every applicant will be able to meet or demonstrate it can
fulfill every criterion. In order to succeed in a competitive grant
making process, a program unable to include volunteer recruitment or
support will simply have to deliver more with respect to other
selection criteria.
If the Corporation is ready to negotiate an applicant's award, and
the applicant has requested a waiver, the Corporation will then decide
whether to relieve the particular program of the requirement to support
or recruit volunteers. The Corporation needs the flexibility, in
building our portfolio, to balance the types of programs we will fund.
Providing a pre-application waiver, which would essentially entail
reviewing an applicant's entire application outside of the competitive
process to assess the program design, would undermine our ability to
achieve that balance. Furthermore, it would not be the best use of our
resources to consider waiver requests for applications that we have not
yet determined to be of sufficient quality to receive funding.
The Corporation reiterates, however, that a State commission can
require its subgrantees to include volunteer recruitment and support,
without regard to whether the Corporation might be willing to waive the
requirement. Applicants applying for funding through a State commission
will be required to request a waiver from the requirement to support or
recruit volunteers through the State commission. We expect a commission
to forward requests for waivers only from those applicants for whom the
commission has approved the initial request. The Corporation will leave
to State commissions the determination of whether a formula applicant
effectively makes the case for a waiver from the requirement to support
or recruit volunteers, but expects State commissions to make these
decisions judiciously. The Corporation will include waiver application
instructions in the grant application instructions.
Fundraising (Sec. 2520.40)
The proposed regulation also clarified that AmeriCorps members may
help organizations raise resources directly in support of service
activities that meet local environmental, educational, public safety,
homeland security, or other human needs. The proposed rule allowed
members to participate in a wide range of fundraising activities if
these activities make up only a relatively small amount of any
individual member's overall service hours. It also allowed members to
write grant applications excepting those for AmeriCorps or any other
Federal funding. The Corporation believes that these activities could
enhance the use of AmeriCorps members to build the capacity of
nonprofit organizations, and advance the professional development of
the members themselves.
The proposed rule's provisions governing fundraising were more
flexible for AmeriCorps members than those for grantee staff, who are
subject to Federal cost principles described in the Office of
Management and Budget Circulars that generally disallow costs incurred
in organized fundraising.
Several commenters were supportive of AmeriCorps members being
allowed to engage in fundraising, but had areas of concern. In
particular, several commenters felt it was as important for program
staff to be allowed to engage in fundraising on AmeriCorps time.
Specifically, some commenters opined that if members may engage in
fundraising, staff mu