Solicitation of Federal Civilian and Uniformed Service Personnel for Contributions to Private Voluntary Organizations-Eligibility and Public Accountability Standards, 67276-67290 [E6-19628]

Agencies

• Office of Personnel Management
• Personnel Management Office

[Federal Register Volume 71, Number 223 (Monday, November 20, 2006)]
[Rules and Regulations]
[Pages 67276-67290]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19628]



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Part III





 Office of Personnel Management





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5 CFR Part 950



Solicitation of Federal Civilian and Uniformed Service Personnel for 
Contributions to Private Voluntary Organizations--Eligibility and 
Public Accountability Standards; Final Rule

Federal Register / Vol. 71, No. 223 / Monday, November 20, 2006 / 
Rules and Regulations

[[Page 67276]]


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OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 950

RIN 3206-AL05


Solicitation of Federal Civilian and Uniformed Service Personnel 
for Contributions to Private Voluntary Organizations--Eligibility and 
Public Accountability Standards

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management (OPM) is issuing final 
regulations concerning the Combined Federal Campaign (CFC). These final 
regulations are being issued as part of OPM's effort to modernize the 
CFC and to realize administrative efficiencies. They were designed to 
address the current and future environment of the CFC where the 
electronic transmission of information will be more routine. As such, 
these regulations update the criteria for CFC eligibility, streamline 
the charity application process, ease the administrative burden on the 
local campaigns, promote the use of electronic technology in the 
administration of the CFC, and expand opportunities during disasters 
and emergencies for Federal donors to contribute to all charities 
participating in the CFC regardless of location.

FOR FURTHER INFORMATION CONTACT: Mark W. Lambert by telephone at (202) 
606-2564; by FAX at (202) 606-5056; or by e-mail at cfc@opm.gov.

DATES: These regulations are effective November 20, 2006.

SUPPLEMENTARY INFORMATION: Pursuant to 5 U.S.C. 553(d)(3), the Director 
of the Office of Personnel Management finds good cause to waive the 30 
day effective date for these regulations. Many national/international 
organizations including federations, federation members, and 
independent organizations, are beginning to prepare for filling out 
their 2007 CFC applications for submission to OPM in January 2007. If 
those organizations begin that process under the current regulations, 
then are required to revise those applications pursuant to these 
revised regulations, resources may be needlessly expended, there will 
be confusion in revising applications, and some applicants who would be 
eligible under the revised regulations might not apply under the 
current regulations. Finally, there will be confusion and resource 
implications for OPM to begin the review process when applications may 
need to be withdrawn or revised if the regulations were not to become 
effective until mid December or later.
    OPM is issuing final regulations concerning eligibility provisions 
and administrative requirements governing the participation of 
organizations and the administration of the CFC. These final 
regulations present a balanced approach to the current and anticipated 
future needs of the CFC and continue the tradition of accountability in 
the CFC by providing Federal donors with assurances that CFC 
participating charities provide real services and are fiscally 
accountable. OPM encourages stakeholders and non-profit sector 
institutions with an oversight mission to collaborate to ensure that 
all charities are fully accountable to the public they serve. OPM will 
continue to emphasize the importance of providing complete, accurate, 
and timely financial reports to donors, regulators and the public, and 
will support donors by providing them with information to evaluate the 
charities of their choice.
    On June 29, 2006 (71 FR 37003), OPM issued comprehensive proposed 
regulations to revise the procedures governing the solicitation of 
Federal civilian and uniformed services personnel at the workplace for 
contributions to private non-profit organizations. That workplace 
solicitation is known as the CFC, administered by OPM under the 
authority of Executive Order 12353 (March 23, 1982) as amended by 
Executive Order 12404 (February 10, 1983). The proposed regulations 
were issued to reduce the burden on applicant charitable organizations 
seeking to qualify for the CFC, simplify the administrative process of 
determining whether charitable organizations are eligible to 
participate in the CFC, and facilitate modernization of the CFC. The 
proposed regulations are available at https://a257.g.akamaitech.net/7/
257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-5795.pdf.
    In this final rule, OPM addresses the comments received on the 
proposed rules set forth at 5 CFR part 950. The 45 day public comment 
period ended August 14, 2006. A total of 415 comments were received 
from participating CFC organizations, Principal Combined Fund 
Organizations, members of Local Federal Coordinating Committees, 
individuals and a Federal government agency.

Eligibility Provisions and Public Accountability Standards

    Under the existing CFC regulations, there were 16 core eligibility 
and public accountability standards and 3 core administrative 
requirements that a charitable organization was required to satisfy in 
order to participate in the CFC. These appeared in the form of 
certifications in the annual CFC application. Many of the standards 
required specific documentation, such as audited financial statements 
and an annual report to demonstrate compliance. OPM had proposed 
removing eight of these standards, including the requirement that 
participating organizations' administrative and fundraising expenses 
not exceed 25 percent of its total revenue. OPM had proposed modifying 
some of the remaining standards to eliminate documented proof of 
compliance. The standards of eligibility and accountability being 
adopted by OPM in this Final Rule are summarized as follows:
    1. Section 950.202(a)--National List Eligibility Requirements--
Certify that the applicant organization provides or conducts real 
services, benefits, assistance, or program activities, in 15 or more 
different states or a foreign country over the 3 year period 
immediately preceding the start of the year involved. The proposed 
regulation set forth that a detailed schedule would be required as part 
of the application that described activities in each state or foreign 
country in each year. In addition, OPM clarified the types of 
information that it would consider acceptable to determine that real 
services are provided or to accurately determine the individuals or 
entities who benefit from the services. In addition, OPM proposed 
adding a statement to clarify that de minimis services, benefits, 
assistance, or other program activities in any state or foreign country 
would not be accepted as a basis for eligibility. One organization and 
one individual commented with a concern that OPM's attempt to clarify 
the eligibility requirements would still result in limited additional 
guidance for charities, federations, and OPM personnel. Both comments 
recommended that OPM amend the regulations to adopt an extensive list 
of factors against which OPM could evaluate whether an organization has 
made a clear showing of actual services, benefits, assistance or 
activities provided in each state or foreign country and also suggested 
criteria that OPM should adopt to define what constitutes substantial 
services. OPM

[[Page 67277]]

carefully considered these comments but is not accepting these 
recommendations and the Final Rule will adopt the proposed regulation. 
OPM believes that the most appropriate vehicle for any additional 
guidance in this area is through use of the existing CFC administrative 
memoranda process and through additional instructions in how to 
complete the annual CFC application.
    2. Section 950.202(b)--National List Eligibility Requirements--
Certify that the applicant organization is recognized by the Internal 
Revenue Service as tax-exempt under 26 U.S.C. 501(c)(3) and to which 
contributions are tax-deductible pursuant to 26 U.S.C. 170(c)(2) and 
that the organization is classified as a public charity under 26 U.S.C. 
509(a). OPM proposed this revision to clarify that applicant 
organizations must be public charities, not private foundations, or 
exclusively government units or instrumentalities thereof. There were 
no comments on this proposal and OPM is adopting this change as 
proposed.
    3. Section 950.203(a)(1)--Public Accountability Standards--Certify 
that the applicant organization is a human health and welfare 
organization providing services, benefits, or assistance to, or 
conducting activities affecting, human health and welfare. No changes 
were proposed to this standard and it remains the same as the existing 
regulation.
    4. Section 950.203(a)(2)--Public Accountability Standards--Certify 
that the applicant organization accounts for its funds in accordance 
with generally accepted accounting principles and that an audit of the 
organization's fiscal operations is completed annually by an 
independent certified public accountant in accordance with generally 
accepted auditing standards. Under the proposed rule, applicants would 
no longer have been required to actually submit a copy of a recent 
audit with the application. OPM also proposed to require a 
certification that the organization had an audit only if it sought CFC 
participation on the national/international or international parts of 
the charity list and if it reported $250,000 or more in revenue on its 
IRS Form 990. OPM proposed to exempt from the audit requirement 
applicant organizations seeking to participate in the CFC at the local 
level that reported revenue of less than $250,000. Numerous comments 
were received both in support of and against this proposal. Those 
opposed argued that reducing the number of CFC charities that are 
independently audited would increase the risk of fiscal mismanagement 
on the part of such charities and could increase the number of 
applications for inclusion in the CFC. Those in favor noted that the 
cost of an audit imposes a disproportionate burden on smaller, local 
charitable organizations.
    OPM has considered these various concerns. OPM agrees that by 
requiring charities with revenues over $250,000 seeking to participate 
in a local campaign to submit audited financial statements with the 
application Federal donors will have additional assurances that such 
organization is fiscally accountable. OPM is also retaining the 
existing regulatory requirement that organizations seeking to 
participate on the national/international and international parts of 
the charity list, regardless of their revenues, certify that they 
account for funds in accordance with generally accepted accounting 
principles, have an audit of their financial statements conducted by an 
independent certified public accountant in accordance with generally 
accepted auditing standards, and submit a copy of their audited 
financial statements. In a departure from the existing regulation, 
organizations seeking local participation will be required to make 
those same certifications and submit a copy of their audited financial 
statements only if their revenues are over $250,000. Organizations with 
revenues between $100,000 and $250,000 seeking local participation will 
be required to certify that they account for funds in accordance with 
generally accepted accounting principles and have an audit of their 
financial statements conducted by an independent certified public 
accountant in accordance with generally accepted auditing standards, 
but will not be required to submit the audited financial statements 
with their application. Charities with revenues less than $100,000 
seeking local participation will be required to certify that they have 
adequate financial controls in place, in form or substance as specified 
by OPM, but will not be required to submit these with their 
application.
    5. Section 950.203(a)(3)--Public Accountability Standards--Certify 
that it prepares and submits to the IRS a complete copy of the 
organization's IRS Form 990 or that it is not required to submit an IRS 
Form 990, and provide a completed copy of the organization's IRS Form 
990, including signature, with the CFC application regardless of 
whether or not the IRS requires the organization to file this form. OPM 
proposed to revise this standard to require a certification in addition 
to having the applicant submit a copy of the completed IRS Form 990 
together with supplemental statements and Schedule A with the 
application. OPM also proposed to no longer routinely check to 
determine whether the IRS Form 990 revenues and expenses reported 
reconcile with the audited financial statements since this 
reconciliation is required to be performed by the organization on the 
IRS Form 990 in Parts IV-A and IV-B. Comments opposing the proposed 
rule noted that the level of CFC accountability would be lowered if the 
previously required reconciliation between the IRS Form 990 and the 
audited financials were removed. Comments in favor of the proposed 
change suggested that the current reconciliation statement that 
organizations are required to provide on the IRS Form 990 should be 
sufficient to qualify for participation in the CFC. One organization 
pointed out that efforts by leading nonprofit infrastructure 
organizations to achieve greater consistency in financial reporting 
standards for the charitable sector are the most appropriate vehicle to 
promote improved reporting to the IRS and should not be used as a means 
to exclude charities from the CFC. OPM agrees with the comments in 
favor and will adopt the proposed regulation in the final rule.
    6. Section 950.203(a)(4)--Public Accountability Standards--Provide 
a computation of the organization's percentage of total support and 
revenue spent on administrative and fundraising. This percentage shall 
be computed from information on the IRS Form 990, submitted pursuant to 
existing regulations at section 950.203(a)(3), by adding the amount 
spent on ``management and general'' (line 14) to ``fundraising'' (line 
15) and then dividing the sum by ``total revenue'' (line 12). No 
substantive changes were proposed to this standard. The references to 
specific lines of the IRS Form 990 were removed, in anticipation of 
future changes to the Form by the IRS and the proposed regulation will 
be adopted in the final rule.
    7. Section 950.203(a)(5)--Public Accountability Standards--Certify 
that the organization is directed by an active and responsible 
governing body whose members have no material conflict of interest and 
a majority of which serve without compensation. No changes were 
proposed to this standard. One commenter suggested that CFC charities 
be required to provide the names and terms of their governing board and 
dates of prior year board meetings. OPM notes that under the current 
CFC regulations, the Director currently has the discretion

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to request this information as deemed necessary.
    8. Section 950.203(a)(6)--Public Accountability Standards--Certify 
that the organization's fundraising practices prohibit the sale or 
lease of its CFC contributor lists. OPM proposed removing this 
standard. Due to the number of public comments that claimed this could 
undermine donor confidence in the CFC, OPM is withdrawing this proposed 
regulation and will retain the existing regulation.
    9. Section 950.203(a)(7)--Public Accountability Standards--Certify 
that the applicant organization's publicity and promotional activities 
are based upon its actual program and operations, are truthful and non-
deceptive, and make no exaggerated or misleading claims. OPM had 
proposed to remove this standard. A majority of comments favored 
retention of this certification as a precaution against abuse by 
applicant organizations and as a possible enforcement tool in cases of 
use of deceptive methods to mislead donors. OPM is withdrawing the 
proposed regulation and will retain its existing regulation.
    10. Section 950.203(a)(8)--Public Accountability Standards--Certify 
that contributions are effectively used for the announced purposes of 
the charitable organization. No changes were proposed to this standard.
    11. Section 950.203(a)(12)--Public Accountability Standards--
Provide a statement that the certifying official is authorized by the 
organization to certify and affirm all statements required for 
inclusion on the national list. No changes were proposed to this 
standard.
    12. Section 950.203(a)(13)--Public Accountability Standards--
Provide a statement in 25 words or less describing the program 
activities of the charitable organization. As proposed, this provision 
is being removed as an eligibility standard, but is retained as an 
administrative requirement in section 950.401(g)(2) and will be 
required from each charitable organization completing the CFC 
application. One commenter proposed that OPM specify that the 25-word 
statement is not permitted to be misleading. OPM points out that 
section 950.203(a)(7) of the existing CFC regulation, which will be 
retained in the Final Rule, requires that organizations certify that 
their publicity and promotional activities are truthful and non-
deceptive. OPM believes that section 950.203(a)(13) is more appropriate 
as an administrative requirement. The proposed change is therefore 
adopted in the final rule.
    13. Section 950.605--Sanctions Compliance Certification--Each 
federation, federation member and unaffiliated organization applying 
for participation in the CFC must, as a condition of participation, 
complete a certification that it is in compliance with all statutes, 
Executive orders, and regulations restricting or prohibiting U.S. 
persons from engaging in transactions and dealings with countries, 
entities or individuals subject to economic sanctions administered by 
the U.S. Department of the Treasury's Office of Foreign Assets Control 
(OFAC). No changes were proposed to this certification.

Current Eligibility and Public Accountability Standards Removed in the 
Final Rule

    1. Section 950.202(c)--National List Eligibility Requirements--
Certify that the organization has no expenses connected with lobbying 
and attempts to influence voting or legislation at the local, State, or 
Federal level or alternatively, that those expenses would classify the 
organization as a tax-exempt organization under 26 U.S.C. 501(h). The 
majority of comments broadly supported OPM's proposed removal of this 
standard because the existing regulatory requirement has been 
misconstrued by some as prohibiting permissible advocacy by charities 
participating in the CFC.
    Given the interrelatedness of items 2 and 3, and the comments 
received, the analysis follows after item 3--Section 950.203(a)(4)(ii).
    2. Section 950.203(a)(4)(i)--Public Accountability Standards--If an 
organization's administrative and fundraising expenses exceed 25 
percent of its total support and revenue, it must certify that its 
actual expenses for administration and fundraising are reasonable under 
all the circumstances presented. It must provide an explanation with 
its CFC application and also include a formal plan to reduce these 
expenses below 25 percent.
    3. Section 950.203(a)(4)(ii)--Public Accountability Standards--The 
Director may reject any application from an organization with 
fundraising and administrative expenses in excess of 25 percent of 
total support and revenue, unless the organization demonstrates to the 
satisfaction of the Director that its actual expenses for those 
purposes and its plan to reduce them are reasonable under the 
circumstances.
    A significant majority of comments on these requirements opposed 
OPM's proposal to remove the 25 percent administrative and fundraising 
rates (AFR) threshold and the explanation and reduction plan 
requirements as a condition of participation in the CFC. The commenters 
argued that allowing a charity, regardless of its AFR ratio, to 
participate in the CFC would result in an expansive increase in the 
number of applicant organizations applying to the CFC. Commenters noted 
that such increase could significantly raise the costs to manage the 
application process and increase local campaign expenses to produce 
larger brochures. Many comments suggested that OPM should instead 
increase the acceptable AFR threshold to 35 percent, consistent with 
the standards commonly used by stakeholders in the charitable 
community. Other comments stated that the existing regulation should be 
retained and that OPM should not expect that donors would have the 
capability or resources to conduct their own research regarding an 
organization's AFR. One national organization commenter supported the 
elimination of the AFR standard as long as information about these 
expenses is readily made available to donors. That same organization 
suggested that OPM require applicant organizations with AFRs that 
exceed 35 percent to also include an explanation or rationale for the 
higher expenditures.
    While OPM carefully considered this matter, OPM is adopting its 
proposed regulation in the final rule and is removing the 25 percent 
AFR ceiling as an eligibility standard. The issue of obtaining a 
specific AFR in order to participate, the subjective nature of OPM's 
determination regarding an acceptable explanation of a high AFR, and 
the determination of the merits of the proposed reduction plan have 
caused an administrative burden on OPM staff. Much of the litigation 
affecting the CFC in the past several years have centered on this 
issue, resulting in a substantial resource drain on OPM staff, 
including the Office of CFC Operations. OPM believes that Federal 
donors are capable of determining what their acceptable AFR levels 
should be for charities they consider supporting. In the interest of 
ensuring that potential Federal donors are informed of participating 
organizations' AFR, OPM will continue to calculate and publish the AFR 
of participating charities by listing the AFR in CFC information 
including the charity lists that are distributed to the donor. OPM will 
add a statement to all CFC Brochures that will note that OPM, as well 
as the philanthropic community at large, remains concerned about 
excessive AFR levels. The Brochure will inform the CFC donor that the 
philanthropic community generally considers an AFR in excess of 35% to

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be problematic and that potential CFC donors should carefully review 
the circumstances applicable to the potential charities of their choice 
to be certain they fully understand and accept the AFR situations for 
such charities before donating to them.
    OPM believes that Federal donors should have an opportunity to 
donate to a wide range of charitable organizations and should not be 
limited in their choices to those charities with AFRs of a specific 
rate, so long as the AFR information is available to them to make an 
informed decision. OPM encourages Federal donors to be knowledgeable 
about those charities to which they choose to donate. OPM already 
requires organizations to provide their World Wide Web address, if 
available, where donors can research the organization. Many local 
campaigns also provide donors with electronic access to information 
from and about participating organizations. As the CFC continues to 
modernize and more donors have more information available through the 
internet, donors can have unlimited references on most organizations. 
OPM is retaining the rule as it was proposed.
    4. Section 950.203(a)(9)--Public Accountability Standards--Certify 
under which governmental entity the charitable organization is 
chartered, incorporated or organized (Congressionally chartered or the 
state in which it is registered). OPM proposed to remove this standard. 
There were five comments which opposed the proposed removal of this 
standard. The comments noted that this information was not a burden to 
collect and could be used to obtain additional information on the 
organization. OPM believes that any such additional information can be 
obtained from the application itself or from contacting the 
organization directly. OPM will adopt the proposed regulation in the 
final rule and will remove this eligibility standard.
    5. Section 950.203(a)(10)--Public Accountability Standards--Certify 
that the organization has received no more than 80 percent of its total 
support and revenues from government sources as computed by dividing 
line 1c by line 12 from the IRS Form 990 submitted pursuant to section 
950.203(a)(3). Many comments agreed with OPM's proposed removal of this 
standard. Two organizations favored retaining this certification based 
on the rationale that the spirit of the CFC is to make the charitable 
donations of Federal employees available to qualified charities, while 
keeping out of the CFC those organizations which already have stable 
funding and are, in essence, providing government supported services. 
Two other organizations agreed with removing the standard, but 
requested that any such organizations be denoted with an asterisk in 
the CFC donor brochure to alert donors that they received more than 80 
percent of their funding from government sources. OPM believes that the 
existing requirement has served to exclude legitimate organizations 
interested in diversifying their sources of support from participation 
in the CFC. OPM will remove this standard in the final rule as 
proposed.
    6. Section 950.203(a)(11)--Public Accountability Standards--Certify 
that the organization prepares and makes available to the public upon 
request an annual report that includes a full description of the 
organization's activities and supporting services and identifies its 
directors and chief administrative personnel. OPM proposed to remove 
this standard because a significant portion of the information sought 
in the annual report is already the subject of a certification or 
obtained as a result of other eligibility requirements and public 
accountability standards contained in sections 950.202(a) and 
950.203(a)(3). A number of comments were received both supporting and 
opposing the proposed rule change. One comment in favor argued that 
with an increasing number of organizations using expanded online 
resources to present information, the proposed rule change would 
encourage more organizations to present their information on-line. 
Comments against OPM's proposed regulation claimed that requiring an 
applicant to provide a copy of its annual report enhances 
accountability and transparency. OPM believes that the annual report is 
not an essential component of the application, particularly since the 
application requires a detailed description of services, benefits or 
activities which are carefully reviewed to determine eligibility. OPM 
agrees that donors should be encouraged to access this information 
online whenever possible or otherwise obtain an annual report directly 
from the charity. OPM adopts the proposed regulation in its final rule.
    Changes corresponding to these changes in eligibility and public 
accountability requirements also are being made to the eligibility 
requirements for the local part of the charity list contained in 
section 950.204, and national and local federation standards set forth 
at sections 950.301, and 950.303. As proposed, national, international 
and local federations are required to submit documents to demonstrate 
compliance with the audit, financial, governance and annual report 
requirements. These requirements are clarified in sections 
950.301(e)(2) and 950.303(e)(2). Federations provide services to 15 or 
more member organizations. Services include the receipt and 
distribution of funds through the CFC. Because federations handle 
approximately 80 percent of all funds distributed through the CFC, the 
documented evidence of compliance for federations will continue to be 
required.
    7. Section 950.204(b)(1)(ii)--OPM has decided not to proceed with 
the proposed change that would require statewide services to be 
provided over a 3 year period, and has withdrawn that change from the 
final rule.

Miscellaneous Administrative Changes

    In addition to changes and modifications to the eligibility 
standards described above, OPM proposed other CFC administrative 
changes to clarify CFC procedures, address areas of concern noted over 
the years by OPM and stakeholders, and to better recognize the use of 
electronic technology in the administration of the CFC. Except where 
noted, comments received on the following proposed regulatory changes 
supported such changes. Given the substantive concerns regarding two of 
the proposed administrative changes, involving solicitation of 
contractor personnel on Federal premises and the relationships between 
national organizations and their bona fide local affiliates, OPM is 
withdrawing the proposed regulation and retaining the regulations as 
they previously existed with minor clarifying changes. These issues are 
described in greater detail in the next section.
    Proposed changes being adopted in the final regulations:
    1. Various changes modifying references associated with the use of 
paper-based information and processes such that these new terms apply 
within an electronic CFC environment.
    2. Section 950.101 includes a revised definition of ``Charity 
List'' to be consistent with section 950.401(g)(2). Throughout the CFC 
regulations, OPM has revised the terms ``National and International 
Lists'' to use the terms ``National/International'' and 
``International'' to be consistent with the definition of ``Charity 
List'' in section 950.101 and the provisions of section 950.401(g)(2).
    3. Current section 950.102(a) limits the annual solicitation of 
donors to a six week period between September 1 and December 15. One 
commenter stated that the six week period should be retained. OPM 
believes that eliminating

[[Page 67280]]

the requirement of a specific six week period is in the best interests 
of the campaign and will allow local campaign leadership to determine 
the appropriate length of the solicitation that must still occur 
between September 1 and December 15.
    4. Current section Sec.  950.102(c) states that the Director 
exercises general supervision over all operations of the CFC, and takes 
all necessary steps to ensure the achievement of campaign objectives. 
OPM will adopt as the final rule the proposed rule that clarifies and 
specifically articulates the Director's authority to perform audits and 
investigations of all CFC activities, and resolve any identified issues 
resulting from such audits and investigations.
    5. Current section 950.103(f) describes a six week period for 
soliciting donors similar to that described in item (2) above. 
Corresponding proposed changes are adopted in the final rule.
    6. Current section 950.103(h) states that a Federal employee may 
participate in a local CFC campaign only if that employee's official 
duty station is located within the geographic boundaries of that 
campaign. OPM proposed a modification to allow for contributions to 
organizations outside of an employee's official duty station in the 
cases of emergencies and disasters as defined in section 950.102(a), 
upon approval by the Director. OPM further proposed to give the 
Director authority to remove all geographic restrictions under any 
circumstances at some future date upon the implementation of 
appropriate technology. Because OPM anticipates such elimination of 
these geographic restrictions on giving at some point in the future, 
local eligibility based on adjacency and statewide presence will no 
longer be necessary and will be eliminated upon implementation of 
appropriate electronic technology to be announced by the Director at 
some future date, without the need for a new proposed regulatory 
proposal. Also see related changes proposed to section 950.204(b)(1). 
OPM retains these provisions in the proposed rule.
    A number of comments expressed concern over OPM's plans to manage 
the flow of contributions during large scale emergencies or disasters 
and one organization suggested that OPM should study the impact of this 
provision on the structure and costs of the campaign. A disaster relief 
organization recommended that in the event of a major disaster, a 
separate campaign for disaster relief should be conducted concurrently 
with the regular CFC in order to distinguish better the contributions 
designated for disaster relief activities. OPM will consider this 
suggestion but does not believe that adoption of the proposed 
regulation would preclude the implementation of such a separate 
disaster campaign since the Director currently exercises general 
supervision over all operations of the CFC and has the authority to 
take all necessary steps to ensure the achievement of campaign 
objectives. Therefore, there is no need to specify the handling of the 
campaign during times of emergency or disaster beyond the authority 
already available, and OPM is adopting the rule as proposed.
    7. Current section 950.104(b)(6) encourages local Federal agencies 
to appoint loaned executives to assist in the campaign and grant 
administrative leave to all loaned executives appointed. OPM is 
adopting the proposed rule that will clarify that Federal agencies 
should not place loaned executives on administrative leave since the 
CFC activities are considered part of the official duties of the 
Federal employee loaned to assist in the CFC.
    8. Current section 950.104(c) states that the LFCC must annually 
solicit applications for the PCFO via public notice. OPM proposed to 
remove the requirement for an annual application and allow LFCCs to 
enter into multi-year agreements, at their discretion. OPM also 
proposed the removal of the requirement to solicit the PCFO 
applications via a public notice and to provide the LFCC discretion as 
to how to announce the solicitation as long as it reaches the audience 
of prospective applicants. OPM will adopt these provisions in the final 
rule.
    9. Current section 950.106(a) states the amount a PCFO may recover 
for campaign expenses shall not exceed 10 percent of the estimated 
budget. OPM adopts the proposed regulation, correcting an error in this 
section which would state that the recovery amount should not exceed 
110 percent of the estimated budget.
    10. Current section 950.109 describes certain conflicts of interest 
for Federal employees who serve as an LFCC member or fundraising 
coordinator. OPM proposed to add clarifying language regarding LFCC 
members not being able to serve in their official capacity on the board 
of directors of the non-profit organization that administers the CFC in 
its local area. This situation was addressed in administrative guidance 
at CFC Memorandum 2002-15. OPM is adopting this proposed revision in 
the final rule.
    11. Current sections 950.201(a)(1) and (2) discuss eligibility for 
national organizations to be included on the national list. OPM 
proposed adding references for international organizations, which must 
also meet these criteria, and clarifying the Director's ability to 
consider corrective action regarding any prior violation of regulation 
or directive, sanction, or penalty, as appropriate, prior to 
determining eligibility. OPM is adopting these proposed revisions in 
the final rule.
    12. Consistent with changes set forth above in paragraph 6, above, 
current section 950.204(b)(1) is modified to allow for the Director to 
provide for elimination of adjacency and statewide presence eligibility 
requirements commencing with the implementation of appropriate 
electronic technology. See related changes adopted in section 
950.103(h). In addition, OPM clarifies this section to define more 
clearly an adjacent local campaign. A number of comments were received 
opposing this proposed change, noting a concern that statewide 
charities and adjacent charities will lose contributions if they are 
not included in the charity list, and donors will be affected if they 
lose the opportunity to contribute to charities of their choice. OPM 
notes that the current adjacency and statewide eligibility criteria 
will remain in place until appropriate technology exists to permit 
donors to make contributions without geographic restriction. OPM does 
not intend that there would be any gap period during which a potential 
donor would be deprived of an opportunity to donate to an eligible 
charity during the transition from the current rule to the elimination 
of geographic boundaries. OPM believes that the cost efficiencies 
inherent in the use of appropriate technology will only be realized by 
strongly encouraging the use of online electronic listings. OPM also 
acknowledges that some form of paper charity list may be needed to 
reach certain donors that may not have access to computers. In these 
circumstances, OPM will issue appropriate guidance to facilitate a full 
listing of all eligible charities within the geographic area. OPM is 
adopting this provision in the final rule.
    13. Current section 950.204(b)(2)(iii) is being amended to add 
Guam, the Commonwealth of Northern Mariana Islands, and American Samoa 
to the list of U.S. territories whose charities may be exempt from the 
requirements of Sec.  950.202(b). A number of comments pointed out that 
local organizations based in these territories do not generally 
participate in the CFC because they are not granted this exception. OPM 
determined that local non-profit organizations based in U.S. 
territories

[[Page 67281]]

are entitled to similar privileges as those in Puerto Rico and the 
Virgin Islands, provided they meet all other required eligibility 
requirements.
    14. Current section 950.204(e) is being revised to remove the 15 
day period for LFCCs to make eligibility decisions and providing 
instead that the decisions must be made as of a date determined by OPM 
and published in the annual CFC calendar.
    15. OPM proposed adding a new subsection to section 950.204(g) that 
clarifies the LFCC's ability to consider corrective action regarding 
any prior violation of regulation or directive, applying an appropriate 
sanction or penalty, as appropriate, prior to determining eligibility 
of local organizations. OPM is as adopting the proposal in the final 
rule.
    16. Current section 950.301(a) states that the Director may 
recognize national and international federations that conform to 
eligibility and accountability standards. OPM proposed clarifying the 
Director's ability to consider corrective action regarding any prior 
violation of regulation or directive applying an appropriate sanction 
or penalty, as appropriate, prior to determining eligibility of 
national and international federations. OPM is as adopting the proposal 
in the final rule.
    17. Current section 950.301(c) states that an organization may 
apply for inclusion as a national CFC federation if the applicant 
federation has 15 or more member organizations each of which meet the 
eligibility criteria of sections 950.202 and 950.203. A national 
federation must provide copies of applications for all of its members 
in the initial year that it applies to participate in the CFC as a 
federation, but needs to submit copies of applications after the 
initial year only at OPM's request. OPM proposed to add clarifying 
language that the federation itself does not count among the 15 or more 
members organizations required to receive federation status. Four 
comments stated that the federation itself should count as one of the 
15 members. OPM believes that the federation itself should not be 
included as one of those 15 member organizations, and is adopting the 
proposed clarification in the final rule.
    18. Current section 950.301(d) discusses the role of national and 
international federations. OPM proposed a terminology change from 
``decertification'' to ``withdrawal of federation status'' to conform 
to a terminology change proposed in section 950.603(a). Numerous 
commenters indicated that they opposed this change as well as the 
changes regarding sanctions and penalties in section 950.603(a). The 
commenters did not believe the proposed change provided an adequate 
appeal process. OPM notes that it did not change the sanctions and 
penalty requirements in the proposed rule. The proposed changes simply 
clarified and consolidated the many sections that dealt with penalties 
and sanctions into a single section at section 950.603(a). The 
requirements are those required by Federal law and OPM is adopting the 
proposed changes in the final rule.
    19. Current section 950.301(e)(2) requires national and 
international federations to certify that their financial activities 
conform to generally accepted accounting principles (GAAP) and that 
they are annually audited by an independent certified public accountant 
in accordance with generally accepted auditing standards (GAAS). That 
section further requires a copy of the audited financial statements and 
that the audit must verify that the federation is honoring designations 
made to each member organization. Finally, the current regulation 
waives the audit requirement for newly created federations operating 
for less than a year. OPM proposed to clarify and simplify the 
regulatory language to apply to all eligibility requirements and public 
accountability standards, contained in sections 950.202 and 950.203 and 
required of independent organizations and federation members, to the 
national and international federations. OPM does not view this as a 
substantive change and is adopting the proposal in the final rule.
    20. Current section 950.301(e)(2)(iii) requires national and 
international federations to disclose important administrative expense 
information to the CFC and donors in its annual report. One 
organization suggested that OPM should consider the differences in 
accounting systems used by federations and establish a standard 
reporting system. OPM agrees that this could be of potential value and 
will consider this as an area for future administrative review. OPM is 
retaining the provision as proposed.
    21. Current section 950.303(a) states that the LFCC must approve 
local federations that conform to eligibility and public accountability 
standards. OPM proposed to clarify the LFCC's ability to consider 
corrective action regarding any prior violation of regulation or 
directive, sanction, or penalty, as appropriate, prior to determining 
eligibility of local federations. OPM adopts this proposal in the final 
rule.
    22. Current section 950.303(c) is the same requirement for local 
federations as that described for section 950.301(c) regarding national 
federations. OPM is adopting in the final rule the clarification that 
the local federation itself does not count among the 15 or more members 
required to receive federation status.
    23. Current section 950.303(d) sets forth the role of local 
federations. OPM will adopt in the final rule a terminology change from 
``decertification'' to ``withdrawal of federation status'' to conform 
to a terminology change in section 950.603(a).
    24. Section 950.303(e)(2) sets forth the same requirement for local 
federations as that is described above applicable to section 
950.301(e)(2). The changes adopted for national and international 
federations also are adopted for local federations in the final rule.
    25. Section 950.303(e)(2)(iii) sets forth the same requirement for 
local federations as that described above in section 950.301(e)(2)(iii) 
for national and international federations. OPM will adopt this 
requirement in the final rule.
    26. Current section 950.401(g)(3) states that each national and 
international federation and charitable organization will be assigned a 
code number by OPM and each local federation and local charitable 
organization will be assigned code numbers by the LFCC. OPM is 
modifying this regulation to facilitate alternative mechanisms by which 
OPM may assign charity codes. A number of comments expressed concerns 
over the manner in which OPM is planning to implement a re-coding of 
the charities, as part of the development of a centralized national CFC 
list. One comment indicated that OPM has already begun the 
implementation of such re-coding process by officially announcing that 
OPM will be assigning both national and local code numbers and 
requiring that LFCCs notify charities accordingly. OPM notes that while 
the planning for the assignment of new codes for all CFC charities has 
begun, the official assignment of codes will not occur before these 
final regulations are implemented. OPM further notes that it has had 
extensive consultation with stakeholders on the need for a new coding 
structure and the limitations that the existing regulation imposes on 
the structure of the campaign. OPM is adopting the proposed 
modification in the final rule.
    27. Current sections 950.401(i) and (j) are being amended to 
provide that local affiliates of a national organization, not 
separately incorporated, still can be determined locally eligible using 
the national organization's IRS tax-exempt

[[Page 67282]]

determination letter and audited financial statements accompanied with 
a certification that the local affiliate operates as a bona-fide 
chapter or affiliate in good standing of the national organization and 
that the affiliate is covered by the national organization's 501(c)(3) 
tax exemption, IRS Form 990 and audited financial statements. The 
affiliate must provide a pro forma IRS Form 990, page 1 and Part V 
only, for CFC purposes in addition to the other documents required 
under section 950.204.
    28. Current section 950.601 governs the release of donor names and 
addresses and the transmittal of this information to designated 
charities. OPM proposed changing the terms ``names and address'' to 
``information,'' to allow other donor information to be released, such 
as contribution amount and home email address. Numerous comments 
supported this change but suggested that clear ``opt-in, opt-out'' 
choices be given to donors. A number of comments opposed this change in 
light of the proposed change to remove the prohibition against sale or 
lease of contributor lists in section 950.203(a)(6). However, since OPM 
is retaining the current regulatory prohibition against sale or lease 
of contributor lists in section 950.203(a)(6), and will not adopt the 
proposed change, OPM does not believe there is substantial disagreement 
with this proposed change in section 950.601 and will adopt that change 
in the final rule.
    29. Current section 950.604 specifies that federations, PCFOs and 
other participants shall retain documents pertinent to the campaign for 
three campaign years. OPM proposed to clarify that three campaign years 
is actually three completed campaign periods and is not based on 
calendar years. OPM is adopting this clarification in the final rule.
    30. Current section 950.801(a)(1) specifies the period during which 
OPM will accept applications from organizations seeking to be listed on 
the national and international parts of the charity list. OPM proposed 
to modify this section to replace it with a period to be determined by 
the Director. OPM will create, maintain, and issue a CFC calendar of 
events each year to define the applicable time periods. Initially, OPM 
will provide for a specific 60-calendar day period between December and 
February as the period during which OPM will accept applications. OPM 
adopts this modification in the final rule.
    31. Current section 950.801(a)(2) states that within 35 calendar 
days of the closing date for the receipt of annual applications, the 
Director will notify each national and international applicant of the 
results of the application review. OPM proposed to remove the defined 
35 day requirement and annually publish an anticipated date for 
notification on the calendar of events that OPM will maintain. OPM is 
adopting this provision in the final rule.
    32. Current section 950.801(a)(3) states that the LFCC must select 
the PCFO no later than March 15 each year. OPM proposed to remove the 
reference to March 15 and state that the LFCC must select the PCFO no 
later than a date to be determined annually by OPM. OPM will provide 
the date in its annual CFC calendar of events and initially set the 
date as February 15 to allow campaigns to begin early planning for the 
campaign beginning after the effective date of these regulations. OPM 
is adopting this provision in the final rule.
    33. Current section 950.801(a)(4) requires the Director to issue a 
national and international list of eligible organizations by June 30. 
OPM proposed to remove the specific date and state the requirement by a 
date annually determined by the Director. Several comments indicated 
that given the impact on all campaigns of the timely release by OPM of 
the national and international parts of the charity list, that a 
regulatory adjusted deadline would be preferred. One comment 
recommended that OPM change the date for issuance from June 30 to July 
30 to be consistent with current actual practice. OPM believes that 
future release of the national and international parts of the charity 
list and the screening of charities will be expedited by improved 
technology and administrative improvements in these regulations and the 
use of a specific deadline in regulation will impose an unnecessary 
constraint. OPM is adopting the proposed change in the final rule.
    34. Current section 950.801(b) requires the Director to annually 
issue a timetable for accepting and processing national and 
international applications. OPM proposed to modify this section to 
specify that the Director will create, maintain and issue annually a 
CFC calendar of events with specific dates that include the accepting 
and processing of national and international applications as well as 
other significant CFC dates. A majority of comments expressed concern 
that without regulatory deadlines, local campaigns could not plan 
adequately or hold OPM accountable for the release of the national and 
international parts of the charity list. The proposed CFC calendar will 
be official CFC guidance and OPM believes it will be sufficient to 
allow for adequate local administration of the campaigns. In addition, 
OPM does not anticipate significant changes to any of the dates being 
removed from the regulations and will provide the annual calendar well 
in advance of the annual campaign and time for selection of the PCFO 
for any campaign. Local campaigns will have adequate time to plan for 
the campaign based on the issuance of the CFC calendar of dates. OPM is 
adopting the provision in the final rule.
    35. Current 950.901(f)(1) requires the remittance checks sent by 
payroll offices to the PCFO each pay period to be accompanied by a 
statement identifying the agency, the dates of the pay period and the 
total number of employee deductions. OPM proposed to add the pay period 
number to the information required to be on this statement. OPM is 
adopting this provision in the final rule.
    36. Current sections 950.901(i)(1) and (i)(2) each contain specific 
dates for the PCFO to notify charitable organizations of the amount of 
pledged contributions (currently no later than February 15) and to 
begin its periodic distributions to charitable organizations. OPM 
proposed to remove the specific dates referenced in the regulation and 
provide that these actions will occur no later than a date to be 
determined annually by OPM. OPM will publish the dates in its annual 
CFC calendar of events. Initially, OPM plans to extend the notification 
date to March 15. OPM proposed to remove the requirement for monthly 
payments and allow all campaigns to make quarterly payments beginning 
no later than April 1. Several comments noted that some small 
organizations could be adversely affected by quarterly payments. OPM 
notes that the PCFO will continue to have the option of retaining the 
monthly payments and is adopting the proposed provisions in the final 
rule
    37. Current sections 950.105(e), 950.302(c), 950.302(d), 
950.304(c), 950.304(d), 950.403, and 950.603 all provide for certain 
penalties and sanctions for federations, unaffiliated organizations, 
and PCFOs. OPM proposed to clarify and combine these penalties and 
sanctions into one new section 950.603 and remove the other references 
from the regulations. Numerous commenters indicated that they did not 
agree with the changes in section 950.603(a) because they did not 
provide an adequate appeal process. OPM notes that it did not change 
the sanctions and penalty requirements in the proposed rule. The 
proposed changes simply clarified and

[[Page 67283]]

consolidated the many sections that dealt with penalties and sanctions 
into a single section 950.603(a). The requirements are those required 
by Federal law and OPM will adopt these changes in the final rule.

Proposed Regulations Withdrawn in Favor of Existing Regulations

    1. Current section 950.103(g) prohibits solicitation of contractor 
personnel, credit union employees and other persons employed on Federal 
premises, and retired Federal employees but allows these individuals an 
opportunity to participate in the CFC by making single contribution. 
OPM's proposal to revise this rule by eliminating restrictions against 
the solicitation of the above personnel received extensive comments 
from the Office of Government Ethics (OGE). In particular, the OGE 
stated that the proposed rule did not specify any standards governing 
the circumstances under which the solicitations may occur. OPM agrees 
this is an issue that requires additional study and is not adopting the 
portion of the proposed rule that would have allowed the solicitation 
of non-Federal personnel. OPM will retain the existing regulation in 
order to have more time to re-examine this issue, while clarifying that 
donations offered by non-Federal personnel must be accepted. OPM adopts 
the portion of the proposed rule that allows for other electronic means 
of contributing, including credit cards, upon approval by the Director.
    2. Sections 950.204(b)(2)(iii) and (b)(2)(iv) were proposed 
additions to the regulations intended to recognize financial 
relationships between national organizations and their bona fide local 
affiliates and to remove certain requirements depending on how those 
relationships were structured. OPM received numerous comments opposing 
the proposed changes which pointed to the emerging trends among 
national charitable organization structures to operate as single 
corporations with affiliates. OPM is not adopting the proposed 
regulations and will retain a slightly modified version of the existing 
regulatory language as its final rule. OPM has modified section 
950.401(i) to clarify that local chapters/affiliate organizations must 
satisfy CFC eligibility criteria and must independently demonstrate 
services and accountability through the submission of independent 
documentation as required in sections 950.202, 950,203 or 950.204, 
except that a chapter or affiliate that is part of a single corporation 
or part of a group exemption may rely on the 26 U.S.C. 501(c)(3) tax-
exempt determination and the audited financial statements for the 
national organization, but must submit page 1 and Part V of a pro forma 
IRS Form 990 used to calculate the AFR.

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities. Charitable 
organizations applying to the CFC have an existing, independent 
obligation to comply with the eligibility and public accountability 
standards contained in current CFC regulations. Streamlining these 
standards will be less burdensome.

Executive Order 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with Executive Order 12866.

List of Subjects in 5 CFR Part 950

    Administrative practice and procedures, Charitable contributions, 
Government employees, Military personnel, Nonprofit organizations, and 
Reporting and recordkeeping requirements.

Office of Personnel Management.
Linda M. Springer,
Director


0
Accordingly, OPM amends 5 CFR part 950 as follows:

PART 950--SOLICITATION OF FEDERAL CIVILIAN AND UNIFORMED SERVICE 
PERSONNEL FOR CONTRIBUTIONS TO PRIVATE VOLUNTARY ORGANIZATIONS

0
1. The authority citation for part 950 continues to read as follows:

    Authority: E.O. 12353 (March 23, 1982), 47 FR 12785 (March 25, 
1982). 3 CFR, 1982 Comp., p. 139. E.O. 12404 (February 10, 1983), 48 
FR 6685 (February 15, 1983), Pub. L. 100-202, and Pub. L. 102-393 (5 
U.S.C. 1101 Note).


0
2. Amend part 950 as follows:
0
a. Remove the words ``brochure'' and ``brochures'' and add in their 
place ``Charity List'' and ``Charity Lists'', respectively, wherever 
they appear;
0
b. Remove the words ``card'' and ``cards'' and add in their place 
``form'' and ``forms'', respectively, wherever they appear; and
0
c. Remove the words ``materials'', ``pamphlet'', and ``pamphlets'' and 
add in their place ``information'' wherever they appear.


0
3. In Sec.  950.101:
0
a. Remove the definition of Campaign Year;
0
b. Add the definitions of Campaign Period, Charity List, and 
Independent Organization in alphabetical order; and
0
c. In the definition of International General Designation Option remove 
the word ``campaign''.
    The additions read as follows:


Sec.  950.101  Definitions.

* * * * *
    Campaign Period means generally a 24 month period beginning with 
the selection of a Principal Combined Fund Organization (PCFO) or 
renewal of the existing PCFO's agreement with a Local Federal 
Coordinating Committee (LFCC) and ending with the final disbursements 
to charitable organizations participating in a local campaign.
    Charity List means the official list of charities approved by OPM 
and the LFCC for inclusion in the CFC within a given geographic 
solicitation area. The Charity List will consist of three parts: the 
National/International part, the International part, and the Local 
part. Organizations that provide services, benefits, assistance, or 
program activities in 15 or more different states or a foreign country 
can choose to be listed on either the International or National/
International part, except for members of a federation, which must be 
listed with the federation. Organizations that provide services, 
benefits, assistance, or program activities in 15 or more different 
states but no foreign countries will be listed on the National/
International part. All qualifying local organizations within a CFC 
geographic solicitation area will be listed on the Local part 
associated with the campaign for that local CFC area.
* * * * *
    Independent Organization means a charitable organization that is 
not a member of a federation for the purposes of the Combined Federal 
Campaign.
* * * * *


0
4. In Sec.  950.102 amend paragraph (a) by removing the text ``6 week'' 
from the second sentence, and amend paragraph (c) by adding two 
sentences at the end of the paragraph to read as follows:


Sec.  950.102  Scope of the Combined Federal Campaign.

* * * * *
    (c) * * * OPM has the authority to audit, investigate, and report 
on the administration of any campaign, the organization that 
administers the campaign, and any national, international and local 
federation, federation member or independent organization that 
participates in the campaign for compliance with these regulations. The 
Director resolves any

[[Page 67284]]

issues reported and determines sanctions or penalties, as warranted 
under Sec.  950.603.
* * * * *


0
5. In Sec.  950.103, revise paragraphs (f), (g) and (h) to read as 
follows:


Sec.  950.103  Establishing a local campaign.

* * * * *
    (f) Each year the LFCC must establish the time period during which 
CFC solicitation may take place. The solicitation may not begin before 
September 1 and in no event will it extend beyond December 15 of each 
year.
    (g) Current Federal civilian and active duty military employees may 
be solicited for contributions using payroll deduction, checks, money 
orders, or cash, or by electronic means, including credit cards, as 
approved by the Director. Contractor personnel, credit union employees 
and other persons present on Federal premises, as well as retired 
Federal employees, may make single contributions to the CFC through 
checks, money orders, or cash, or by electronic means, including credit 
cards, as approved by the Director. These non-Federal personnel may not 
be solicited, but donations offered by such persons must be accepted by 
the local campaigns.
    (h) A Federal employee whose official duty station is outside the 
geographic boundaries of an established CFC may not be solicited in 
that CFC. A Federal employee may participate in a particular CFC only 
if that employee's official duty station is located within the 
geographic boundaries of that CFC. This restriction may be discontinued 
upon implementation of appropriate electronic technology that allows 
removal of the need for geographic restrictions on giving as determined 
by the Director. Upon a showing of extraordinary circumstances, as 
determined in the sole discretion of the Director, Federal employees 
may contribute in support of victims in cases of emergencies and 
disasters defined in Sec.  950.102(a) outside the geographic boundaries 
of their participating CFC. Such contributions can be check, money 
order, or cash or by electronic means, including credit cards, as 
approved by the Director, but shall not be made through payroll 
deduction.


0
6. Amend Sec.  950.104 as follows:
0
a. In paragraphs (b)(4) and (b)(5), remove the word ``local''; and
0
b. Revise paragraphs (b)(6) and (c) to read as follows:
    The revisions read as follows:


Sec.  950.104  Local Federal Coordinating Committee responsibilities.

* * * * *
    (b) * * *
    (6) Encouraging local Federal agencies to appoint loaned executives 
to assist in the campaign. CFC loaned executives' time should be 
charged to regular working hours. It is not appropriate to place a CFC 
loaned executive on administrative leave, leave without pay, or annual 
leave. Federal loaned executives are prohibited from working on non-CFC 
fundraising activities during duty hours.
* * * * *
    (c) The LFCC must select a PCFO to act as its fiscal agent and 
campaign coordinator on the basis of presentations made to the LFCC as 
described in Sec.  950.105(c). The LFCC may, in its discretion, select 
a PCFO to serve in that role for up to three campaign periods, subject 
to renewal each year following a review of performance as defined in 
Sec.  950.105. The LFCC must consider the capacity of the organization 
to manage an efficient and effective campaign, its history of public 
accountability, use of funds, truthfulness and accuracy in 
solicitations, and sound governance and fiscal management practices as 
the primary factors in selecting a PCFO. The LFCC must solicit 
applications on a competitive basis for the PCFO no later than a date 
to be determined by OPM and, if the LFCC exercises discretion to enter 
into a multi-year arrangement, upon completion of the multi-year term. 
The LFCC shall solicit applications via outreach activities including: 
Public notice in newspapers, postings on Web sites, advertising in 
trade journals, dissemination among participating CFC organizations and 
federations, and/or outreach through local or state nonprofit 
associations and training centers, among others. The PCFO application 
period must be open a minimum of 21 calendar days. Costs incurred for 
soliciting applications must be added to the PCFO budget as an 
administrative cost.


Sec.  950.105  [Amended]

0
7. Amend Sec.  950.105 as follows:
0
a. In paragraph (b), remove the word ``printed'' in the second sentence 
and add in its place the word ``developed'';
0
b. In paragraph (d)(3), remove the word ``address'' and add in its 
place ``contact information'';
0
c. In paragraph (d)(6), add the text ``, cont