Solicitation of Federal Civilian and Uniformed Service Personnel for Contributions to Private Voluntary Organizations, 20820-20832 [2013-08017]
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20820
Proposed Rules
Federal Register
Vol. 78, No. 67
Monday, April 8, 2013
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
OFFICE OF PERSONNEL
MANAGEMENT
5 CFR Part 950
RIN 3206–AM68
Solicitation of Federal Civilian and
Uniformed Service Personnel for
Contributions to Private Voluntary
Organizations
Office of Personnel
Management.
ACTION: Proposed rule.
AGENCY:
The United States Office of
Personnel Management (OPM) is issuing
a proposed rule to amend the Combined
Federal Campaign (CFC) regulations in
order to strengthen the integrity,
streamline the operations and increase
the effectiveness of the program to
ensure its continued growth and
success.
SUMMARY:
OPM must receive comments on
or before June 7, 2013.
ADDRESSES: Send written comments to
Keith Willingham, Director, Combined
Federal Campaign, U.S. Office of
Personnel Management, Room 6484A,
1900 E Street NW., Washington, DC; or
email cfc@opm.gov, include ‘‘RIN 3206–
AM68’’ in the subject line of the
message, or FAX to (202) 606–5056
Attn: Keith Willingham. You may also
submit comments using the Federal
eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
FOR FURTHER INFORMATION CONTACT:
Mary Capule at mary.capule@opm.gov
or (202) 606–2564.
SUPPLEMENTARY INFORMATION: This
proposed rule would replace the current
regulations for the CFC. OPM proposes
these new regulations to govern the
solicitation of Federal civilian and
uniformed services personnel at the
workplace. These proposed regulations
are issued under the authority delegated
to OPM by Executive Order 12353
(March 23, 1982), 47 FR 12785 (Mar. 25,
1982), as amended by Executive Order
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DATES:
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12404 (February 10, 1983), 48 FR 6685
(Feb. 15, 1983).
In 2011, the CFC celebrated its 50th
anniversary. In connection with this
landmark anniversary, OPM announced
the formation of the CFC–50
Commission. The Commission, formed
under the Federal Advisory Committee
Act, was asked to study ways to
streamline and improve the program;
improve accountability, increase
transparency and accessibility and make
it more affordable.
The Commission delivered its report
to the OPM Director on July 20, 2012.
The report contained 24
recommendations for improvement in
the following areas: donor participation,
CFC infrastructure, and standards of
accountability and transparency.
OPM has reviewed these
recommendations. This proposed rule
reflects changes that OPM has
concluded will improve the CFC, based
on its experience administering the
program and its considered judgment.
(1) Changing the Campaign
Solicitation Period. Under current
regulations, the CFC campaign
solicitation period runs from September
1 to December 15. OPM proposes to
change its regulation at § 950.102 to
shift the campaign solicitation period by
one month, so that it would begin on
October 1 and end on January 15. This
will allow the many employees who
take leave during the month of
December to contribute through the
campaign when they return in the
month of January. It also enables
employees to consider the impact of
future pay and other benefits (which
often take effect the first full pay period
in January) before making donations.
(2) Immediate eligibility. Under
current regulations, new employees may
not begin participating in the CFC until
the next scheduled campaign
solicitation period begins. OPM
proposes to amend its regulation at
§ 950.102 to allow new employees to
make CFC pledges immediately upon
entering Federal service. Under OPM’s
proposal, new employees would be
provided information on the CFC at
orientation and be able to make pledges
within 30 days of being hired if hired
outside of the solicitation period. This
will enable those employees who wish
to make an immediate contribution to
do so.
(3) Disaster Relief Program. Under
current regulations, the OPM Director is
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authorized to allow special solicitations
to respond to disasters. There is no
standing mechanism in place, but rather
each disaster requires a new
authorization from the Director for a
special solicitation period. OPM
proposes to create a permanent structure
to streamline and facilitate solicitations
tied to disaster relief. Accordingly, OPM
proposes to amend its regulations at
§ 950.102 to provide for the creation of
a Disaster Relief Program that would be
available to donors within hours after a
disaster.
(4) Local Governance Structure.
Currently, the CFC is managed locally
through Local Federal Coordinating
Committees (LFCC). The number of
LFCC representatives, the level of
engagement, and knowledge of CFC
rules and regulations varies greatly
among the 184 campaign regions in the
U.S. and overseas. In some areas,
campaigns have difficulty identifying
Federal employees who can dedicate the
time to fulfill the LFCC’s oversight
responsibilities, including the selection
of a Principal Combined fund
Organization (PCFO), review and
approval of reimbursable campaign
expenses, review of local charity
applications, and oversight of the
PCFO’s CFC functions. OPM is
proposing to modify its regulations at
§ 950.103 to change the LFCC to a
Regional Coordinating Committee (RCC)
structure. Under this proposed change,
the Director would maintain sole
authority with regard to any revisions to
the established geographical regions,
establish limits for the RCC Chair, set
requirement for a Vice Chair and
establish new requirements for Agency
head to appoint employees to assist
with the campaign. At a minimum, the
RCCs will be comprised of
representatives of Federal inter-agency
organizations, such as Federal Executive
Boards and Federal Executive
Associations, or personnel assigned to
the military installation and/or Federal
agency identified as the lead agency in
that region. The responsibilities of the
RCC will be similar to those of the LFCC
with the exception of the selection and
oversight of a PCFO. OPM believes the
reduction in responsibilities, in addition
to larger campaign regions from which
members will be selected, will attract
more individuals to serve in this
important leadership role.
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(5) Electronic Donations. OPM
proposes to modify § 950.103 to
eliminate the use of cash, check and
money order contributions. Instead, all
donations will be required to be made
through electronic means. Electronic
transfers are now widely available and
by moving to an exclusively electronic
donation system, we will increase the
efficiency of administration of the CFC
program, eliminate burdensome
paperwork, and save resources.
(6) Training and Oversight. OPM
proposes to modify § 950.104 to provide
for additional training and oversight of
the RCC. The training will be conducted
by OPM staff and will focus on
oversight responsibilities, charity
eligibility requirements, and how to
select a marketing organization and
review/approve its reimbursable
marketing expenses.
(7) Elimination of Paper Processes.
OPM is also proposing to modify
§ 950.104 to eliminate paper processes
within the CFC as much as possible.
Specifically, OPM proposes changes in
this section to eliminate printing and
distributing the Charity List. Rather, this
list will be made available exclusively
through electronic means. This change
will reduce overhead costs and increase
efficiency in the administration of the
CFC program.
(8) Streamlining Campaign
Administration. Under current
regulations, many campaign
administration functions are performed
by a number of Principal Combined
Fund Organizations (PCFOs) supporting
local campaigns throughout the country.
We believe that a centralized approach
will benefit from economies of scale and
ultimately reduce overhead costs.
Accordingly, OPM proposes to modify
its regulations at § 950.105 to eliminate
the PCFOs. In their place, we propose to
consolidate responsibilities for back
office functions and establish one or
more Central Campaign Administrators
(CCA). The CCA would either perform
these functions itself or would set up
regional receipt and disbursement
centers. We further propose that the
RCC may engage a marketing firm to
continue outreach to Federal, Postal and
military personnel, functions currently
coordinated by the PCFOs.
(9) Administrative Costs. Currently,
the overhead administrative costs of
much of the CFC program are paid for
out of donor contributions to the
campaign. We believe that more
transparency with respect to
administrative overhead would be
beneficial to the program, to the donors,
and to the charitable organization that
receive donations through the program.
Accordingly, OPM proposes that the
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cost of the campaign previously
outlined in § 950.106 instead be
recovered through application fees paid
by the charitable organizations that
apply for participation in the CFC. This
section also establishes how the fees
will be collected and the permissible
uses of the fees.
(10) Streamlined Application Process.
OPM believes there are efficiencies to be
gained in its charity application process.
We are proposing to modify the
regulations at § 950.201 to reduce the
burden on charities that have previously
been admitted to participate in the
program. Thus, these charities would be
required to produce a more limited
specified set of documents, via a
reduced application form, to be
admitted for the subsequent two years.
We think this approach will afford us
with sufficient information to evaluate
the charity’s continuing eligibility while
reducing unnecessary administrative
burdens on the charity.
(11) Audit of Small Charities. OPM is
proposing to modify its regulations at
§ 950.203 to waive the audit
requirement for organizations reporting
less than $100,000 in annual revenue to
the IRS. In addition, we propose that an
organization with annual revenue of at
least $100,000 but less than $250,000
not be required to undergo an audit, but
have their statements reviewed by an
independent certified public accounting
firm. This would remove a
disproportionate burden on small
charities.
(12) Oversight of Federations. OPM
proposes to strengthen its regulations
regarding federations to increase
accountability and transparency. OPM
proposes changes to § 950.301 to specify
that federations provide a copy of each
member organization’s application,
require dates upon which
disbursements must be made to
members, adds additional reporting
requirements, and prohibit deductions
of dues/fees from the disbursement of
CFC contributions.
(13) Payroll Deduction Disbursements.
OPM has decided to standardize and
improve how payroll offices provide
donor pledge reports to campaigns.
OPM proposes changes to former
§ 950.901 (§ 950.801 in these proposed
regulations) to require payroll offices to
either distribute funds to the charities
directly or, if funds are transmitted to
the CCA, provide more detailed reports.
Currently, Federal payroll office
disbursement reports vary in format and
level of detail, which adds to the
administrative costs of the campaign
administrators responsible for ensuring
the accuracy of disbursements to
designated charities.
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These proposed changes will
introduce efficiencies and cost savings
into the CFC by leveraging technology
that was not widely available just a few
years ago. They will make the CFC more
efficient, more transparent, more
accountable and more relevant to
Federal, Postal and military service
personnel who want to make the biggest
impact with their donations.
While these proposals would make
significant changes in the operation of
the CFC, OPM remains committed to
ensuring the broad participation of a
multitude of charities in the CFC, and
to preserving the local character, sense
of community, and employee
involvement that has been a hallmark of
the CFC. We welcome comments on
how to best maintain these important
attributes as we take steps to improve
the CFC for the future.
Section-by-Section Analysis
Section 950.101 Definitions.
Definitions were reviewed and updated
to conform to the proposed regulatory
changes. Accordingly, we propose to
eliminate terms no longer applicable
(Campaign Period, Designated Funds,
Domestic Area, Local Federal
Coordinating Committee (LFCC),
Overseas Area, Principal Combined
Fund Organization (PCFO),
Undesignated Funds), add new terms
(Campaign Expenses, Central Campaign
Administrator (CCA), Charity
Application Fees, Regional Coordinating
Committee (RCC)), and revise
definitions of some of the terms that
remain in place (Administrative
Expenses, Charity List, Organization or
Charitable Organization, Solicitation).
Section 950.102 Scope of the
Combined Federal Campaign. Adjusts
solicitation dates to October 1–January
15 from September 1–December 15. This
shift addresses concerns about having
the campaign end in December, while
maintaining the current length of the
solicitation period, as well as
eliminating the requirement for the
LFCC to establish campaign dates. It
also provides the opportunity for new
employees to pledge within 30 days if
hired outside the solicitation period,
and establishes standard guidance for
Disaster Relief support.
Section 950.103 Establishing
Regional Coordinating Committees.
Changes Local Federal Coordinating
Committee (LFCC) to Regional
Coordinating Committee (RCC) to better
reflect the proposed responsibilities of
this committee of Federal personnel.
Requires appointment of RCC Chair and
Vice Chair, limits Chair term to no more
than 3 consecutive years. Establishes
new requirement for Agency heads to
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appoint employees in support of the
campaign. Eliminates use of cash, check
and money order, limits pledging to
electronic means using only payroll
deduction or credit cards, and also
eliminates restriction on soliciting nonFederal personnel. Removes campaign
boundaries with regard to donors, as
universal giving is supported in a
completely electronic process.
Section 950.104 Regional
Coordinating Committee
responsibilities. Provides for a transition
from a large number of ’’local’’
campaigns to a smaller number of
‘‘regions,’’ requiring a reduced number
of Federal personnel for oversight
purposes. Requires committee members
to gain a complete understanding of
regulations and procedures by attending
specific training and achieving
certification in RCC operations.
Eliminates the local application review
responsibility, and tasks the RCC to
assist OPM with application review as
assigned. Reassigns the responsibility
for training the campaign personnel
from the PCFO to the RCC. Establishes
the ability for RCC to hire campaign
marketing support. Eliminates the need
for Loaned Executives in a fully
electronic pledging environment.
Section 950.105 Federal Agency
Head responsibilities. Outlines specific
responsibilities of Agency Heads to
include identification of employees in
support of the campaign. Previously
defined duties are also indicated to
include providing support to the
campaign, becoming familiar with the
regulations, and assuring the campaign
is conducted in accordance with those
regulations.
Section 950.106 Central Campaign
Administrator (CCA) Establishes CCA
requirements, roles and functions and
eliminates requirement for PCFO and all
references thereto. Provides guidance
for circumstances where no qualified
CCA can be retained.
Section 950.107 Campaign Expense
recovery. Shifts the expense of the
campaign from the donor to the
charities via a charity application fee
and changes PCFO expenses to
campaign expenses (CCA and marketing
costs).
Section 950.108 Preventing Coercive
activity. No changes.
Section 950.109 Avoidance of
Conflict of Interest. Removed references
to LFCC and PCFO, added reference to
RCC.
Section 950.110 Prohibited
discrimination. Updated to meet current
legal standards.
Section 950.201 Charity eligibility.
Combines all current charity eligibility
guidance into one subpart, eliminating
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separate sections for national/
international and local. Eliminates
annual application requirement and
instead establishes a streamlined
verification process for two ‘‘renewal’’
years after the year in which the initial
full application is approved.
Section 950.202 Charity eligibility
requirements. Establishes in one section
requirements for national/international
and local charities. Codifies several
OPM guidance memoranda into the
regulation (2006–21 and 2008–08).
Removes requirement to submit IRS
verification letter if the organization can
be verified in the IRS Business Master
File (BMF). Outlines verification
requirements for local affiliates,
churches and Family Support and
Youth Activities/Family Support and
Youth Programs FSYA/FSYPs.
Section 950.203 Public
accountability standards. Specifies
‘calendar year’ where previous reference
was unclear and updated sample dates.
Specifies requirement for US or
International Accounting Standards,
and modifies transition levels for audit
requirements. Removes requirement for
Attachment A of IRS Form 990, and
removes definition of ‘pro forma 990’ so
requirements can be modified easily as
the IRS updates the form.
Section 950.204 Eligibility decisions
and appeals. All local eligibility
requirements merged from this section
into section 950.203. New section
950.204 establishes process for
decisions and appeals in lieu of certified
or registered mail. Codifies appeal
information in OPM guidance
memorandum 2012–03.
Section 950.301 Federation
eligibility. Establishes specific
requirements, combining national/
international and local federation
eligibility requirements into one section.
Requires federations to submit a copy of
each member organization’s application
as outlined in the Charity Eligibility
section. Specifies ‘calendar year’ where
previous reference was unclear.
Section 950.302 Responsibilities of
federations Combines national/
international and local federation
responsibilities into one section.
Establishes requirement for federations
to disburse funds to members on a
quarterly basis, and prohibits
federations from deducting fees or
charges from disbursements made to
member organizations. Requires that
CFC funds are identified as such when
payments that include non-CFC funds
are made to member organizations.
Section 950.401 Campaign and
publicity information. Removes
references to PCFO, changes references
from LFCC to RCC. Eliminates use of
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paper Charity List and pledge form, as
all donations must be entered
electronically. Removes the
undesignated gift option. Removes
guidance for confidential gifts as gifts
will be made electronically. Adds
requirement and references for credit
card usage. Adds the organization’s Web
site address as a standardized item in
each charity list entry, and revises the
25 word statement to a 256 character
statement.
Section 950.402 Pledge form
Removes use of paper pledge forms, and
all references thereto. Also removes
undesignated option, as well as all
references with regard to undesignated
pledging.
Section 950.501 Release of
contributor information. Eliminates
references to PCFO, and replaces those
references with CCA. Requires
federations to provide donor
information to its member organizations
in a specific time frame. Codifies CFC
Memo 2003–2.
Section 950.502 Solicitation
methods. Prohibits fund raising at
events and activities, eliminates
references to specific CFC events and
activities, and requires that Agencies
obtain approval from ethics officials to
approve all events and activities.
Section 950.503 Sanctions and
penalties. Removes all references to
PCFO and LFCC, and added references
to CCA where appropriate.
Section 950.504 Records retention.
Changed PCFO reference to CCA.
Updated years in sample dates.
Section 950.505 Sanctions
compliance certification. Corrects
‘‘unaffiliated’’ to ‘‘independent.’’
Corrects official name of OPM’s Office
of CFC (OCFC).
Section 950.601 Campaign schedule.
Eliminates references to National/
International applicants since all
applications and eligibility process
requirements apply to all charities.
Eliminates references to PCFO and
LFCC regarding specifics of local
application review process which has
been eliminated.
Section 950.701 Payroll allotment.
Eliminates references to paper pledge
forms, which have been discontinued.
Changes dates of payroll deductions to
coincide with new extended solicitation
period. Changes minimum pledge to $1
per pay period per designated charity.
Section 950.801 Accounting and
Distribution. Outlines requirement for
remittance and transmission of funds by
payroll offices to CCA or charities.
Changes references from PCFO to CCA,
outlines requirements for distribution of
credit card funds.
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Regulatory Flexibility Act
I certify that these regulations would
not have a significant economic impact
on a substantial number of small entities
because they would reduce reporting
and recordkeeping requirements for
small organizations that wish to
participate in the CFC.
Subpart E—Miscellaneous Provisions
950.501 Release of contributor information.
950.502 Solicitation methods.
950.503 Sanctions and penalties.
950.504 Records retention.
950.505 Sanctions compliance certification.
Subpart F—CFC Timetable
950. 601 Campaign schedule.
Executive Order 13563 and Executive
Order 12866
Subpart G—Payroll Withholding
950.701 Payroll allotment.
This proposed rule has been reviewed
by the Office of Management and
Budget in accordance with Executive
Order 13563 (January 18, 2011), 76 FR
3821 (Jan. 21, 2011), and Executive
Order 12866 (September 30, 1993), 58
FR 51735 (Oct. 4, 1993).
Subpart H—Accounting and Distribution
950.801 Accounting and distribution.
List of Subjects in 5 CFR Part 950
Administrative practice and
procedure, Charitable contributions,
Government employees, Military
personnel, Nonprofit organizations,
Reporting and recordkeeping
requirements.
Subpart A—General Provisions
§ 950.101
U.S. Office of Personnel Management.
John Berry,
Director.
Accordingly, the U.S. Office of
Personnel Management is proposing to
revise 5 CFR part 950 to read as follows:
PART 950—SOLICITATION OF
FEDERAL CIVILIAN AND UNIFORMED
SERVICE PERSONNEL FOR
CONTRIBUTIONS TO PRIVATE
VOLUNTARY ORGANIZATIONS
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Subpart A—General Provisions
Sec.
950.101 Definitions.
950.102 Scope of the Combined Federal
Campaign.
950.103 Establishing Regional
Coordinating Committees.
950.104 Regional Coordinating Committee
responsibilities.
950.105 Federal Agency Head
responsibilities.
950.106 Central Campaign Administrator
(CCA).
950.107 Campaign expense recovery.
950.108 Preventing coercive activity.
950.109 Avoidance of conflict of interest.
950.110 Prohibited discrimination.
Subpart B—Eligibility Provisions
950.201 Charity eligibility.
950.202 Charity eligibility requirements.
950.203 Public accountability standards.
950.204 Eligibility decisions and appeals.
Subpart C—Federations
950.301 Federation eligibility.
950.302 Responsibilities of federations.
Subpart D—Campaign Information
950.401 Campaign and publicity
information.
950.402 Pledge form.
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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).
Definitions.
As used in this part:
Administrative Expenses means the
overhead costs of the participating
organization based on information from
the Internal Revenue Service Form 990.
Campaign Expenses means the cost of
the administration of the campaign by
the Central Campaign Administrator
and any regional marketing
organizations.
Central Campaign Administrator
means the organization(s) responsible
for developing and maintaining the CFC
Web site and charity application
module, and to which OPM may assign
responsibility for making distributions
to charities.
Charity Application Fees means the
charge to charities applying for listing in
the CFC to pay the Campaign Expenses.
Charity List means the official list of
charities approved by OPM for
inclusion in the CFC.
Combined Federal Campaign or
Campaign or CFC means the charitable
fundraising program established and
administered by the Director of the
Office of Personnel Management (OPM)
pursuant to Executive Order No. 12353,
as amended by Executive Order No.
12404, and all subsidiary units of such
program.
Director means the Director of the
Office of Personnel Management or his/
her designee.
Employee means any person
employed by the Government of the
United States or any branch, unit, or
instrumentality thereof, including
persons in the civil service, uniformed
service, foreign service, and the postal
service.
Family Support and Youth Activities
(FSYA) means an organization on a
domestic military base recognized by
the Department of Defense as providing
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programs for military families on the
base.
Family Support and Youth Programs
(FSYP) means an organization on a nondomestic military base recognized by
the Department of Defense as providing
programs for military families on the
base.
Federation or Federated Group means
a group of voluntary charitable human
health and welfare organizations created
to supply common fundraising,
administrative, and management
services to its constituent members.
Independent Organization means a
charitable organization that is not a
member of a federation for the purposes
of the Combined Federal Campaign.
International General Designation
Option means an option available to
donors under which his or her gift is
distributed to all of the international
organizations listed in the International
Section of the Charity List in the same
proportion as all of the international
organizations received designations in
the local CFC. This option will have the
code IIIII.
International Organization means a
charitable organization that provides
services either exclusively or in a
substantial preponderance to persons in
areas outside of the United States.
Organization or Charitable
Organization means a non-profit,
philanthropic, human health and
welfare organization.
Regional Coordinating Committee
means the group of Federal officials
designated by the Director to oversee the
CFC in a region and to assist the
Director with the charity application
reviews.
Solicitation means any action
requesting a monetary donation, either
by payroll deduction or credit card, on
behalf of charitable organizations.
§ 950.102 Scope of the Combined Federal
Campaign.
(a) The CFC is the only authorized
solicitation of employees in the Federal
workplace on behalf of charitable
organizations. A campaign may be
conducted only during the period
running from October 1 through January
15. It must be conducted at every
Federal agency in accordance with the
regulations in this part. No other
monetary solicitation on behalf of
charitable organizations may be
conducted in the Federal workplace,
except as follows:
(1) Federal agencies must provide
information about the CFC to new
employees at orientation. New
employees may make pledges within 30
days of hiring if hired outside of the
campaign period.
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(2) The Director may grant permission
for solicitations of Federal employees,
outside the CFC, in support of victims
in cases of emergencies and disasters.
Emergencies and disasters are defined
as any hurricane, tornado storm, flood,
high water, wind-driven water, tidal
wave, tsunami, earthquake, volcanic
eruption, landslide, mudslide,
snowstorm, drought, fire, explosion, or
other catastrophe in any part of the
world. Any special solicitations will be
managed through a Disaster Relief
Program developed by OPM.
(b) The regulations in this part do not
apply to the collection of gifts-in-kind,
such as food, clothing and toys, or to the
solicitation of Federal employees
outside of the Federal workplace as
defined by the applicable Agency Head
consistent with General Services
Administration regulations and any
other applicable laws or regulations.
(c) The Director may exercise general
supervision over all operations of the
CFC, and take all necessary steps to
ensure the achievement of campaign
objectives, including but not limited to
the following:
(1) Any disputes relating to the
interpretation or implementation of this
part may be submitted to the Director
for resolution. The decisions of the
Director are final for administrative
purposes.
(2) The Director may audit,
investigate, and report on the
administration of any campaign, the
organization that administers the
campaign, and any national,
international and local federation,
federation member or independent
organization that participates in the
campaign for compliance with these
regulations. The Director may resolve
any issues reported and assess sanctions
or penalties, as warranted under
§ 950.503.
(d) Current Federal civilian and active
duty military employees may be
solicited for contributions using payroll
deduction 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 by
electronic means, including credit
cards, as approved by the Director.
(e) Heads of departments or agencies
may establish policies and procedures
applicable to solicitations conducted by
organizations composed of civilian
employees or members of the uniformed
services among their own members for
organizational support or for the benefit
of welfare funds for their members.
Such solicitations are not subject to
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these regulations, and therefore do not
require permission of the Director.
§ 950.103 Establishing Regional
Coordinating Committees.
(a) The Director, in his or her sole
discretion, will establish, maintain, and,
from time to time, revise an official list
of campaign regions.
(b) For each campaign region, the
Director will establish a Regional
Coordinating Committee (RCC) for the
purpose of governing the campaign for
that region. The RCC shall consist of the
following:
(1) A minimum of three members to
be drawn from local Federal interagency organizations, such as Federal
Executive Boards and Federal Executive
Associations, or from personnel
assigned to the military installation and/
or agency identified as the lead agency
in that region;
(2) Representation from local Federal
agencies; and
(3) If approved by the Director,
representatives of employee unions and
other employee groups.
(c) The members of each RCC must
select a Chair and a Vice Chair. The
Chair and Vice Chair positions will be
rotated among the RCC members. The
term of the Chair and Vice Chair may
not exceed three consecutive years. Any
RCC Chair or Vice Chair is subject to
removal by the Director, in his sole and
unreviewable discretion.
(d) The RCC will ensure that, to the
extent reasonably possible, every
employee is given the opportunity to
participate in the CFC.
§ 950.104 Regional Coordinating
Committee responsibilities.
(a) The RCC is to serve as the central
source of information regarding the CFC
among Federal employees in their
region. All members of the RCC must
develop an understanding of campaign
regulations and procedures.
(b) The responsibilities of the RCC
members include, but are not limited to,
the following:
(1) Attend required RCC training and
obtain certification in RCC operations;
(2) Maintain minutes of RCC meetings
and respond promptly to any request for
information from the Director;
(3) Name a RCC Chair and Vice Chair
and notify the Director when there is a
change in either position;
(4) Assist in determining the
eligibility of organizations that apply to
participate in the campaign as required
and assigned by OPM;
(5) Provide training to employees in
the methods of non-coercive
solicitation;
(6) Provide instructions to employees
regarding the process for making
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donations and designating the charitable
organizations to receive their donations.
(7) Take appropriate measures to
protect potential donors from coercion
to participate in the campaign.
(8) Bring any allegations of potential
donor coercion to the attention of the
employee’s agency and provide a
mechanism to review employee
complaints of undue coercion in Federal
fundraising. Federal agencies shall
provide procedures and assign
responsibility for the investigation of
such complaints. The agency official
responsible for conducting the
campaign is responsible for informing
employees of the proper channels for
pursuing such complaints.
(9) Notify the Director of issues
concerning the campaign that the RCC
cannot resolve by applying these
regulations. The RCC must abide by the
Director’s decisions on all matters
concerning the campaign.
(10) Monitor the work of the
marketing organization, ensuring
compliance with these regulations, as
well as performance as outlined in
agreement between the RCC and the
marketing organization.
(11) Review, approve and provide
authorization to the Central Campaign
Administrator for payments to the
marketing organization in an efficient
and effective manner as outlined in the
agreement.
(c) The RCC may hire an organization
to provide regional operation marketing
support to their campaign, including
developing marketing plans and
materials, employee training, and
campaign event and activity support.
§ 950.105 Federal Agency Head
responsibilities.
(a) The agency head at each Federal
installation within a campaign area
should:
(1) Become familiar with all CFC
regulations.
(2) Cooperate with the members of the
RCC in organizing and conducting the
campaign.
(3) Initiate official campaigns within
their offices or installations and provide
support for the campaign.
(4) Assure the campaign is conducted
in accordance with these regulations.
(5) Appoint an employee to oversee
the Agency campaign.
(6) Establish a network of employees
in support of the Agency’s campaign.
(b) Agency heads may not discontinue
solicitation of Federal employees during
the campaign solicitation period within
their organization without the written
approval of the Director.
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§ 950.106
(CCA).
Central Campaign Administrator
(a) OPM may contract with one or
more organizations classified by the
Internal Revenue Service as 501(c)(3)
organizations, to perform the centralized
fiscal and administrative functions of
the CFC. One organization will be
responsible for developing and
maintaining a centralized Web site for
the CFC that will include an online
application function for charities
applying to participate in the CFC and
an online pledging function for Federal
donor use. All organizations will be
responsible for disbursing funds
received from the Federal payroll offices
or service providers. If OPM contracts
with more than one organization, the
disbursement responsibilities will be
divided between them based on Federal
Shared Service Centers and Federal
payroll offices. For example, if OPM
contracts with four organizations, one
would handle all agencies that use
National Finance Center as their Shared
Service Center. Only non-CFC
participating organizations may be
selected as CCAs.
(b) In the event that there is no
qualified CCA, no workplace
solicitation of any Federal employee
may be authorized and CFC payroll
allotments would not be accepted or
honored.
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§ 950.107
Campaign expense recovery.
(a) The costs of the regional marketing
approved by the RCC, training and
traveling for the RCC, and CCA will be
recovered through application fees paid
by charitable organizations applying for
participation in the CFC. The fee
structure will be determined annually
by the Director based on estimated costs
of administering the campaign. This
structure will be announced no later
than October 31 of the year preceding
the campaign. Any excess funds from
applications fees over expenses will be
rolled over to the following campaign
and be considered when setting the
rates. Marketing expenses will not
exceed a percentage of receipts as
determined by the Director. No
expenses for food or entertainment may
be reimbursed to the marketing firm.
Only travel related food expenses may
be reimbursed to the RCC in accordance
with the Federal Travel Regulations.
(b) Charity application fees are due at
the time of the filing of the application
or the application deadline, whichever
occurs last. A charity that has not paid
the full application fee at that time may
not participate in the CFC that campaign
year.
(c) Charity application fees will not be
refunded, even if the charity has
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withdrawn its application or fails to
meet the public accountability
standards or eligibility requirements for
participation.
§ 950.108
Preventing coercive activity.
True voluntary giving is fundamental
to Federal fundraising activities.
Actions that do not allow free choices
or create the appearance that employees
do not have a free choice to give or not
to give, or to publicize their gifts or to
keep them confidential, are contrary to
Federal fundraising policy. Activities
contrary to the non-coercive intent of
Federal fundraising policy are not
permitted in campaigns. They include,
but are not limited to:
(a) Solicitation of employees by their
supervisor or by any individual in their
supervisory chain of command. This
does not prohibit the head of an agency
to perform the usual activities
associated with the campaign kick-off
and to demonstrate his or her support of
the CFC in employee newsletters or
other routine communications with the
Federal employees.
(b) Supervisory inquiries about
whether an employee chose to
participate or not to participate or the
amount of an employee’s donation.
Supervisors may be given nothing more
than summary information about the
major units that they supervise.
(c) Setting of 100 percent
participation goals.
(d) Establishing personal dollar goals
and quotas.
(e) Developing and using lists of noncontributors.
(f) Providing and using contributor
lists for purposes other than the routine
collection and forwarding of
contributions and allotments, and as
allowed under § 950.501.
(g) Using as a factor in a supervisor’s
performance appraisal the results of the
solicitation in the supervisor’s unit or
organization.
§ 950.109
Avoidance of conflict of interest.
Any Federal employee who serves on
the RCC, or as a Federal agency
fundraising program employee, shall not
serve in any official capacity or
participate in any decisions where,
because of membership on the board or
other affiliation with a charitable
organization, there could be or appear to
be a conflict of interest under any
statute, regulation, Executive order, or
applicable agency standards of conduct.
§ 950.110
Prohibited discrimination.
Discrimination for or against any
individual or group on account of race,
ethnicity, color, religion, sex (including
pregnancy and gender identity),
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20825
national origin, age, disability, sexual
orientation, genetic information, or any
other non-merit-based factor is
prohibited in all aspects of the
management and the execution of the
CFC. Nothing herein denies eligibility to
any organization, which is otherwise
eligible under this part to participate in
the CFC, merely because such
organization is organized by, on behalf
of, or to serve persons of a particular
race, ethnicity, color, religion, sex,
gender identity, national origin, age,
disability, sexual orientation, or genetic
background.
Subpart B—Eligibility Provisions
§ 950.201
Charity eligibility.
(a) The Director shall annually:
(1) Determine the timetable and other
procedures regarding application for
inclusion in the Charity List; and
(2) Determine which organizations
among those that apply qualify to be
included in the National/International,
International and Local parts of the
Charity List. In order to determine
whether an organization may participate
in the campaign, the Director may
request evidence of corrective action
regarding any prior violation of
regulation or directive, sanction, or
penalty, as appropriate. The Director
retains the ultimate authority to decide
whether the organization has
demonstrated, to the Director’s
satisfaction, that the organization has
taken appropriate corrective action.
Failure to demonstrate satisfactory
corrective action or to respond to the
Director’s request for information within
10 business days of the date of the
request may result in a determination
that the organization will not be
included in the Charity List.
(b) The Charity List will include each
organization’s CFC code and other
information as determined by OPM.
(c) A charity must submit the full
application the initial year it applies to
participate in the CFC. In lieu of a full
application, a charity may submit a
verification application for the two
years immediately following its
submission of a full application.
(1) A verification application consists
of certification of all applicable
statements required by §§ 950.202 and
950.203, and submission of an IRS Form
990 or pro forma IRS Form 990, as
defined in § 950.203(a)(3).
(2) An organization that did not apply
or was not approved for participation in
the preceding campaign must submit a
full application.
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§ 950.202
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Charity eligibility requirements.
(a) The requirements for an
organization to be listed in the Charity
List shall include the following:
(1) Certification that it provides or
conducts real services, benefits,
assistance, or program activities, in 15
or more different states or one or more
foreign countries over the 3 calendar
year period immediately preceding
January 1 of the campaign application
year. A schedule listing a detailed
description of the services in each state
(minimum 15) or foreign countries
(minimum 1), including the year of
service and documenting the location
and date and year of each service, and
the number of beneficiaries of each such
service must be included with the CFC
application. The schedule must make a
clear showing of national or
international presence. Broad
descriptions of services and identical
repetitive narratives will not be
accepted in the sole discretion of OPM
if they do not allow OPM to adequately
determine that real services were
provided or to accurately determine the
individuals or entities who benefited. It
must be clear in the documentation
submitted that the organization
provided at least one human health and
welfare service in the calendar year
prior to the year for which the
organization is applying. Publications or
other documents in lieu of a schedule
detailing this information are not
acceptable.
(i) Local charitable organizations are
not required to have provided services
or benefits in 15 states or a foreign
country over the prior 3 years. The
schedule for local organizations is only
required to document services in their
local area. Local organizations must also
certify that the Organization Address
submitted with the application is the
primary location where the
organization’s services are rendered
and/or its records are maintained.
(ii) This requirement cannot be met
solely by the provision of services via
telephone, unless the service is
emergency in nature such as a suicide
prevention hotline. The requirement is
also not met solely by disseminating
information and publications via the
U.S. Postal Service or the Internet,
unless it meets the criteria for webbased services as described in
§ 950.202(a)(1)(iii), or a combination
thereof.
(iii) Real services or benefits for webbased service organizations may be
considered if the organization provides
service logs or other records indicating
the geographic distribution of users in
each state. The organization must
demonstrate the scope of services
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received by users over the three-year
period immediately preceding the start
of the campaign year involved. Reports
that reflect only the number of hits or
visits to a Web site are not sufficient to
establish the provision of real services.
In addition, two of the three following
types of information must be provided
to demonstrate the provision of real
services, benefits, assistance, or program
activities:
(A) Evidence that recipients,
including members of the general
public, dues paying members or affiliate
organizations, have registered for use of
the Web site;
(B) Summary reports that document
customer feedback, through service
satisfaction or utilization surveys or
other mechanisms; and
(C) Documented evidence that
recipients of web-based services paid a
fee for the service.
(iv) Providing listings of affiliated
groups does not demonstrate provision
of real services by the applicant.
Location of residence of organization
members or location of residence of
visitors to a facility does not
substantiate provision of services.
Schedules that describe activities
conducted by an entity other than the
applicant, such as a chapter or a support
group, must include information
documenting the applicant’s role in the
delivery of the service. Details may
include items such as whether the
chapter is funded by the applicant or
how the applicant assisted in the
delivery of the service. Applications
that fail to include a description of how
the applicant itself provides service may
result in a denial.
(v) Organizations that provide student
scholarships or fellowships must
indicate the state in which the recipient
resides, not the state of the school or
place of fellowship. Mere dissemination
of information does not demonstrate
acceptable provision of real services.
(vi) While it is not expected that an
organization maintain an office in each
state or foreign country, a clear showing
must be made of the actual services,
benefits, assistance or activities
provided in each state or foreign
country. Organizations that provide
services in one location may only count
the state in which the services are
provided toward their eligibility to
participate on the national charity list.
However, an organization may have
beneficiaries from several states and
want service to those beneficiaries
considered toward the 15-state
requirement to participate on the
national Charity List. If an organization
can document that the services are
subsidized or were provided free-of-
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charge, and list the value of those
services to each of the beneficiaries,
then the service to the beneficiary may
be considered a service in the state of
the beneficiary’s residence, similar to a
financial grant or scholarship. For
example, a medical institution
providing free housing to family
members of the patient during the
length of the patient’s stay must list the
location of the medical institution, the
city/state of residence of each
beneficiary, the dates of service, and the
value of the housing provided to each
beneficiary’s family members.
(vii) An organization’s role in
providing information to the media,
such as authorship of an article for a
newspaper, magazine, or journal, or
serving as an interviewee or reference
for a television news program, or the
authorship of a book, does not in itself
constitute a real service for CFC
purposes. Likewise, the production and/
or distribution of information, such as a
report based on research, surveys
conducted by the applicant
organization, or publication of a policy
position paper, does not, in itself,
constitute an eligible service. With
regard to media-related activities,
research, and reports, the applicant
must describe the manner in which
beneficiaries requested or used the
document or information in order to
establish the provision of a real services,
benefit, assistance, or program activity.
(viii) De minimis services, benefits,
assistance, or other program activities in
any state or foreign country will not be
accepted as a basis for qualification as
a national or international organization.
Factors that OPM will consider in
determining whether an organization’s
services, benefits, assistance or other
program activities are de minimis
include, but are not limited to: nature
and extent of the service, benefit,
assistance or activity; frequency,
continuity, and duration; value of
financial assistance awarded to
individuals or entities; impact on, or
benefit to, beneficiaries; and number of
beneficiaries.
(2) Certification that it is an
organization recognized by the Internal
Revenue Service as tax exempt under 26
U.S.C. 501(c)(3) to which contributions
are deductible under 26 U.S.C.
170(c)(2). The CFC will verify that each
applicant’s name and Employer
Identification Number appears in the
IRS Business Master File (BMF). If the
organization does not appear in the
BMF, one of the following must
accompany the application:
(i) An affirmation letter from the IRS,
dated on or after January 1 of the
campaign year to which the
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organization is applying, that verifies
the organization’s current 501(c)(3) taxexempt status.
(ii) A local affiliate of a national
organization that is not separately
incorporated must submit a certification
from the Chief Executive Officer (CEO)
or CEO equivalent of the national
organization stating that it operates as a
bonafide chapter or affiliate in good
standing of the national organization
and is covered by the national
organization’s 26 U.S.C. 501(c)(3) tax
exemption. The letter must be signed
and dated on or after October 1 of the
calendar year preceding the campaign
year for which the organization is
applying.
(iii) For central organizations that are
churches, the CFC will accept a copy of
its most recently published listing (such
as a church directory) of section
501(c)(3) organizations that are included
in the group exemption held by the
central organization. A subordinate may
alternatively obtain a letter from the
central organization affirming the
subordinate’s status as an organization
exempt under section 501(c)(3) of the
Internal Revenue Code that is included
in the group exemption held by the
central organization.
(iv) Family Support and Youth
Activities (FSYA) located on military
installations in the United States and
Family Support and Youth Programs
(FSYP) located on military installations
overseas must provide a copy of
certification by the commander of a
military installation, as outlined in
paragraphs (a)(3) and (4) of this section,
to demonstrate tax-exempt status.
(3) Family support and youth
activities or programs certified by the
commander of a military installation as
meeting the eligibility criteria contained
in paragraphs (a)(3) and (4) of this
section may appear on the list of local
organizations and be supported from
CFC funds. Family support and youth
activities may participate in the CFC as
a member of a federation at the
discretion of the certifying commander.
(4) A family support and youth
activity or program must:
(i) Be a nonprofit, tax-exempt
organization that provides family
service programs or youth activity
programs to personnel in the Command
and be a Non-Appropriated Fund
Instrumentality that supports the
installation MWR/FSYA/FSYP program.
The activity must not receive a majority
of its financial support from
appropriated funds.
(ii) Have a high degree of integrity and
responsibility in the conduct of their
affairs. Contributions received must be
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used effectively for the announced
purposes of the organization.
(iii) Be directed by the base NonAppropriated Fund Council or an active
voluntary board of directors which
serves without compensation and holds
regular meetings.
(iv) Conduct its fiscal operations in
accordance with a detailed annual
budget, prepared and approved at the
beginning of the fiscal year. Any
significant variations from the approved
budget must have prior authorization
from the Non-Appropriated Fund
Council or the directors. The family
support and youth activities must have
accounting procedures acceptable to an
installation auditor and the inspector
general.
(v) Have a policy and practice of
nondiscrimination on the basis of race,
color, religion, sex, sexual orientation,
gender identity or national origin
applicable to persons served by the
organization.
(vi) Prepare an annual report which
includes a full description of the
organization’s activities and
accomplishments. These reports must
be made available to the public upon
request.
(b) [Reserved]
§ 950.203
Public accountability standards.
(a) To ensure organizations wishing to
solicit donations from Federal
employees in the workplace are
portraying accurately their programs
and benefits, each organization seeking
eligibility must meet annually
applicable standards and certification
requirements. Each organization, other
than FSYA or FSYP, wishing to
participate must:
(1) Certify that the organization is a
human health and welfare organization
providing services, benefits, or
assistance to, or conducting activities
affecting, human health and welfare.
The organization’s application must
provide documentation describing the
health and human welfare benefits
provided by the organization within the
previous calendar year;
(2) Subject to the exceptions listed in
this section, certify that it accounts for
its funds on an accrual basis in
accordance with United States or
International generally accepted
accounting principles and that an audit
of its fiscal operations is completed
annually by an independent certified
public accountant in accordance with
generally accepted auditing standards.
A copy of the organization’s most recent
annual audited financial statements
must be included with the application.
The statements must include all
statements required for voluntary health
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and welfare organizations by the United
States Financial Accounting Standards
Board or the International Accounting
Standards Board. The audited financial
statements must cover the fiscal period
ending not more than 18 months prior
to the January of the year of the
campaign for which the organization is
applying. For example, the audited
financial statements included in the
2014 application must cover the fiscal
period ending on or after June 30, 2012.
(i) An organization with annual
revenue of less than $100,000 reported
on its IRS Form 990 or pro forma IRS
Form 990 submitted to the CFC is not
required to undergo an audit, submit
audited financial statements, or to
account for its funds on an accrual basis
in accordance with generally accepted
accounting principles. Rather, the
organization must certify that it has
controls in place to ensure that funds
are properly accounted for and that it
can provide accurate and timely
financial information to interested
parties.
(ii) An organization with annual
revenue of at least $100,000 but less
than $250,000 is not required to
undergo an audit. The organization
must certify that its financial statements
are reviewed by an independent
certified public accountant on an annual
basis or are audited by an independent
public accountant on an annual basis. A
copy of the reviewed or audited
financial statements must be included
with the application.
(3) Certify that it prepares and
submits to the IRS a complete copy of
the organization’s IRS Form 990 or that
it is not required to prepare and submit
an IRS Form 990 to the IRS. Provide a
completed copy of the organization’s
IRS Form 990 submitted to the IRS
covering a fiscal period ending not more
than 18 months prior to the January of
the year of the campaign for which the
organization is applying, including
signature, and all supplemental
schedules, with the application, or if not
required to file an IRS Form 990,
provide a pro forma IRS Form 990. Pro
forma IRS Form 990 instructions will be
posted on the OPM Web site and
included in the application instructions.
IRS Forms 990EZ, 990PF, and
comparable forms are not acceptable
substitutes. The IRS Form 990 and
audited financial statements, if required,
must cover the same fiscal period.
(4) Provide a computation of the
organization’s percentage of total
support and revenue spent on
administrative and fundraising. This
percentage shall be computed from
information on the IRS Form 990
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submitted pursuant to paragraph (a)(3)
of this section.
(5) Certify that the organization is
directed by an active and responsible
governing body whose members have no
material conflict of interest and, a
majority of which serve without
compensation.
(6) Certify that the organization’s
fundraising practices prohibit the sale or
lease of its CFC contributor lists.
(7) Certify that its publicity and
promotional activities are based upon
its actual program and operations, are
truthful and non-deceptive, and make
no exaggerated or misleading claims.
(8) Certify that contributions are
effectively used for the announced
purposes of the charitable organization.
(9) Provide a statement that the
certifying official is authorized by the
organization to certify and affirm all
statements required for inclusion on the
Charity List.
(b) The Director shall review these
applications for accuracy, completeness,
and compliance with these regulations.
Failure to supply any of this
information may be judged a failure to
comply with the requirements of public
accountability, and the charitable
organization may be ruled ineligible for
inclusion on the Charity List.
(c) The Director may request such
additional information as the Director
deems necessary to complete these
reviews. An organization that fails to
comply with such requests within 10
calendar days from the date of receipt of
the request may be judged ineligible.
(d) The required certifications and
documentation must have been
completed and submitted prior to the
application filing deadline.
(e) The Director may waive any of
these standards and certifications upon
a showing of extenuating circumstances.
(3) Include a statement explaining the
reason(s) why eligibility should be
granted; and
(4) Include a copy of the
communication from OPM disapproving
the original application and supporting
information to justify the reversal of the
original decision.
(d) Applications or appeals of an
adverse eligibility determination must
be submitted in a timely manner as
indicated above.
(e) Appeals may not be used to
supplement applications with
documents that did not exist or were not
set forth in final form prior to the
application deadline. For example,
audited financial statements that were
not prepared or were in draft form at the
time of the deadline cannot be used to
document eligibility. Similarly, charities
that had applied for, but had not
obtained, 501(c)(3) status from the IRS
by the CFC application deadline are not
eligible to participate for that campaign
year.
(f) The Director’s decision is final for
administrative purposes.
Subpart C—Federations
§ 950.301
Federation eligibility.
(a) The Director may recognize
federations that conform to the
requirements set by the Director and are
eligible to receive designations. In order
to determine whether the Director will
recognize a federation, the Director may
request evidence of corrective action
regarding any prior violation of
regulation or directive, sanction, or
penalty, as appropriate. The Director
retains the ultimate authority to decide
whether the federation has
demonstrated, to the Director’s
satisfaction, that the federation has
taken appropriate corrective action.
§ 950.204 Eligibility decisions and appeals. Failure to demonstrate satisfactory
corrective action or to respond to the
(a) Organizations applying for
participation in the CFC will be notified Director’s request for information within
10 business days of the date of the
of the eligibility decision electronically
request may result in a determination
via the email address(es) listed in the
that the federation will not be included
charity application.
in the Charity List. The Director also
(b) Organizations that apply and are
reserves the authority to place a
denied eligibility for inclusion on the
Charity List may appeal the decision by moratorium on the recognition of
submitting a request for reconsideration. federations from time to time.
(b) By applying for inclusion in the
This request must be received within 10
business days from the date the decision CFC, federations consent to allow the
Director complete access to its and its
to deny eligibility was sent via email
members’ CFC books and records and to
and shall be limited to those facts
respond to requests for information by
justifying the reversal of the original
the Director.
decision.
(c) An organization may apply to the
(c) All appeals must:
Director for inclusion as a federation to
(1) Be in writing;
(2) Be received by the Director within participate in the CFC if the applicant
has, as members of the proposed
10 business days of the date the
federation, 15 or more charitable
decision to deny the application was
organizations, in addition to the
sent via email;
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federation itself, that meet the eligibility
criteria of §§ 950.202 and 950.203. The
federation must submit the applications
of all its proposed member
organizations annually.
(d) After an organization has been
granted federation status, it may certify
that its member organizations meet all
eligibility criteria of § 950.202 and
§ 950.203 to be included on the Charity
List. Federation status in a prior
campaign is not a guarantee of
federation status in a subsequent
campaign. Failure to meet minimum
federation eligibility requirements shall
not be deemed to be a withdrawal of
federation status subject to a hearing on
the record.
(e) An applicant for federation status
must annually certify and/or
demonstrate:
(1) That all member organizations
seeking participation in the CFC are
qualified for inclusion on the National/
International or International or Local
part of the Charity List. Applicants must
provide a complete list of those member
organizations it certified in addition to
each organization’s complete
application.
(2) That it meets the eligibility
requirements and public accountability
standards contained in § 950.202 and
§ 950.203. The federation can
demonstrate that it has met the
eligibility requirement in § 950.202(a)
either through its own services, benefits,
assistance or program activities or
through its 15 members’ activities.
(i) The federation must complete the
certification set forth at § 950.203(a)(2)
without regard to the amount of revenue
reported on its IRS Form 990 and must
provide a copy of its audited financial
statements. The audited financial
statements provided must verify that the
federation is honoring designations
made to each member organization by
distributing a proportionate share of
receipts based on donor designations to
each member. The audit requirement is
waived for newly created federations
operating for less than two years from
the date of its IRS tax-exemption letter
to the closing date of the CFC
application period.
(ii) The federation must provide a
listing of its board of directors,
beginning and ending dates of each
member’s current term of office, and the
board’s meeting dates and locations for
the calendar year prior to the year of the
campaign for which the organization is
applying.
(3) That it does not employ in its CFC
operations the services of private
consultants, consulting firms,
advertising agencies or similar business
organizations to perform its policy-
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making or decision-making functions in
the CFC. It may, however, contract with
entities or individuals such as banks,
accountants, lawyers, and other vendors
of goods and/or services to assist in
accomplishing its administrative tasks.
(f) The Director will notify a
federation if it is determined that the
federation does not meet the eligibility
requirements of this section. A
federation may appeal an adverse
eligibility decision in accordance with
§ 950.204.
(g) The Director may waive any
eligibility criteria for federation status if
it is determined that such a waiver will
be in the best interest of the CFC.
(h) Two organizations—American Red
Cross and United Service
Organization—are exempt from the 15member requirement of paragraph (c) of
this section.
mstockstill on DSK4VPTVN1PROD with PROPOSALS
§ 950.302
Responsibilities of federations.
(a) Federations must ensure that only
those member organizations that comply
with all eligibility requirements
included in these regulations are
certified for participation in the CFC.
(b) The Director may elect to review,
accept or reject the certifications of the
eligibility of the members of federations.
If the Director requests information
supporting a certification of eligibility,
that information shall be furnished
promptly. Failure to furnish such
information within 10 business days of
the receipt of the request constitutes
grounds for the denial of national
eligibility of that member.
(c) Each federation, as fiscal agent for
its member organizations, must ensure
that Federal employee designations are
honored in that each member
organization receives its proportionate
share of receipts based on the results of
each individual campaign. The
proportionate share of receipts is
determined by donor designations to the
individual member organization as
compared to total campaign
designations.
(d) Federations must disburse CFC
funds to each member organization
without any further deductions.
Membership dues, fees, or other charges
to member organizations must be
assessed outside of the CFC
disbursement process.
(e) Federations must disburse CFC
funds to member organizations on a
quarterly basis, at a minimum. The
disbursements must be made within the
months of June, September, December,
and March.
(f) Disbursements to federation
members that include funds from a nonCFC campaign must include a report
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that clearly identifies the amount of CFC
funds.
Subpart D—Campaign Information
§ 950.401 Campaign and publicity
information.
(a) The specific campaign marketing
and publicity information will be
developed locally, except as specified in
the regulations in this subpart. All
information must be reviewed and
approved by the RCC for compliance
with these regulations and will be
developed and supplied by the RCC or
contracted agent.
(b) During the CFC solicitation period,
participating CFC organizations may
distribute bona fide educational
information describing its services or
programs. The organization must be
granted permission by the Federal
agency installation head, or designee to
distribute the material. CFC Other
employees or members of the RCC, are
not authorized to grant permission for
the distribution of such information. If
one organization is granted permission
to distribute educational information,
then the Federal agency installation
head must allow any other requesting
CFC organization to distribute
educational information.
(c) Organizations and federations are
encouraged to publicize their activities
outside Federal facilities and to
broadcast messages aimed at Federal
employees in an attempt to solicit their
contributions through the media and
other outlets.
(d) Agency Heads are further
authorized to permit the distribution by
organizations of promotional
information to Federal personnel in
public areas of Federal workplaces in
connection with the CFC, provided that
the manner of distribution accords equal
treatment to all charitable organizations
furnishing such information for local
use, and further provided that no such
distribution shall utilize Federal
personnel on official duty or interfere
with Federal government activities. RCC
members and other campaign personnel
are to be particularly aware of the
prohibition of assisting any charitable
organization or federated group in
distributing any type of literature,
especially during the campaign. Nothing
in this section shall be construed to
require a RCC to distribute or arrange for
the distribution of any material other
than RCC approved marketing materials.
(e) The Campaign Charity List and
pledge form are the official sources of
CFC information and shall be made
available in electronic format to all
potential contributors. The Charity List
and pledging system must inform
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20829
employees of their right to make a
choice to contribute or not to contribute.
(f) Campaign marketing materials
must be comprised of a simple and
attractive design that is donor focused
and has fundraising appeal and
essential working information. The
design must focus on the CFC without
undue use of charitable organization
symbols and logos or other distractions
that compete for the donor’s attention.
(g) The following applies specifically
to the campaign Charity List:
(1) OPM will provide the approved
Charity List as well as general campaign
information. This will include:
(i) An explanation of the payroll
deduction privilege.
(ii) A description and explanation of
other electronic pledging, to include
credit cards.
(iii) A statement that the donor may
only designate charitable organizations
or federations that are listed in the
Charity List and that write-ins are
prohibited.
(iv) Instructions as to how an
employee may obtain more specific
information about the programs and the
finances of the organizations
participating in the campaign.
(v) A description of employees’ rights
to pursue complaints of undue pressure
or coercion in Federal fundraising
activities.
(2) The Charity List will consist of
National/International, International,
and Local organizations. The order of
these organizations will be rotated
annually in accordance with OPM
instructions. The order of listing of the
federated and independent
organizations will be determined by a
random selection process. The order of
organizations within each federation
will be determined by the federation.
The order within the National/
International, International and Local
independent groups will be
alphabetical. Absent specific
instructions from OPM to the contrary,
each participating organization and
federated group listing must include a
description, not to exceed 256
characters, of its services and programs,
plus a Web site address and telephone
number for the Federal donor to obtain
further information about the group’s
services, benefits, and administrative
expenses. Each listing will include the
organization’s administration and
fundraising percentage as calculated
pursuant to § 950.203(a)(4). Neither the
percentage of administrative and
fundraising expenses, nor the Web site
address or telephone number count
toward the 256 character description.
(3) Each federation and charitable
organization will be assigned a code in
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Federal Register / Vol. 78, No. 67 / Monday, April 8, 2013 / Proposed Rules
a manner determined by the Director. At
the beginning of each federated group’s
listing will be the federation’s name,
code number, 256 character description,
percentage of administrative and
fundraising expenses, Web site address
and telephone number. Each
organization will be identified as
National/International, International
and Local, respectively.
(h) Listing of national and local
affiliate. Listing of a national
organization, as well as its local affiliate
organization, is permitted. Each national
or local organization must individually
meet all of the eligibility criteria and
submit independent documentation as
required in § 950.202 and § 950.203 to
be included in the Charity List.
However, a local affiliate of a national
organization that is not separately
incorporated, in lieu of its own 26
U.S.C. 501(c)(3) tax exemption letter
and, to the extent required by
§ 950.203(a)(2), audited financial
statements, may submit the national
organization’s 26 U.S.C. 501(c)(3) tax
exemption letter and audited financial
statements, but must provide its own
pro forma IRS Form 990, as defined
in§ 950.203(a)(3), for CFC purposes. The
local affiliate must submit a certification
from the Chief Executive Officer (CEO)
or CEO equivalent of the national
organization stating that it operates as a
bonafide chapter or affiliate in good
standing of the national organization
and is covered by the national
organization’s 26 U.S.C. 501(c)(3) tax
exemption, IRS Form 990 and audited
financial statements.
(i) Listing local offices. Listing of a
local organization, as well as its satellite
offices, is permitted, as long as there is
no more than one location within a
county or parish. Each office must
individually meet all of the eligibility
criteria and submit independent
documentation as required in § 950.202
and § 950.203 to be included in the
Charity List. However, a satellite office
that is not separately incorporated, in
lieu of its own 26 U.S.C. 501(c)(3) tax
exemption letter and, to the extent
required by § 950.203(a)(2), audited
financial statements, may submit the
local organization’s 26 U.S.C. 501(c)(3)
tax exemption letter and audited
financial statements, but must provide
its own pro forma IRS Form 990, as
defined in § 950.203(a)(3), for CFC
purposes. The satellite office must
submit a certification from the Chief
Executive Officer (CEO) or CEO
equivalent of the local organization
stating that it operates as a bonafide
office in good standing and is covered
by the local organization’s 26 U.S.C.
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501(c)(3) tax exemption, IRS Form 990
and audited financial statements.
(j) Multiple listing prohibited. Except
as provided in paragraphs (h) and (i) of
this section, once an organization is
deemed eligible, it is entitled to only
one listing in the Charity List, regardless
of the number of federations to which
that organization belongs.
§ 950.402
Pledge form.
(a) The Director will provide guidance
with regard to the data required for
electronic pledge processing.
(b) An employee may not make a
designation to an organization not listed
in the Charity List. All pledges must be
designated to specific CFC participating
organization(s). No undesignated
pledges will be allowed.
Subpart E—Miscellaneous Provisions
§ 950.501 Release of contributor
information.
(a) The pledge form, designed
pursuant to § 950.402, must allow a
contributor to indicate if the contributor
will allow his or her name, contribution
amount, and home contact information
to be forwarded to the charitable
organization or organizations
designated.
(b) The pledge form shall permit a
contributor to specify which
information, if any, he or she wishes
released to organizations receiving his
or her donations.
(c) It is the responsibility of the CCA
to forward the contributor information
for those who have indicated that they
wish this information to be released to
the recipient organization directly, if the
organization is independent, and to the
organization’s federation if the
organization is a member of a
federation. The contributor information
must be forwarded as soon as
practicable after the completion of the
campaign, but in no case later than a
date to be determined by OPM. The date
will be part of the annual timetable
issued by the Director under
§ 950.601(b). The federation is
responsible for ensuring the information
is released to the appropriate member
organization. The CCA may not sell or
make any other use of this information.
Federations may not retain donor
information for their own use unless the
donor made a direct designation to the
federation itself. This policy also
prohibits the sharing of donor
information, even free of charge.
§ 950.502
Solicitation methods.
(a) Employee solicitations shall be
conducted during duty hours using
methods that permit true voluntary
giving and shall reserve to the
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individual the option of disclosing any
gift or keeping it confidential. Campaign
kick-offs, victory events, awards, and
other non-solicitation events to build
support for the CFC are encouraged.
(b) Special CFC events, are permitted
during the campaign if approved by the
appropriate agency head or government
official, consistent with agency ethics
regulations. No costs for food or
entertainment at a special event may be
charged to the CFC. CFC special events
must be undertaken in the spirit of
generating interest in the CFC and be
open to all individuals without regard to
whether an individual participates in
the CFC. If prizes are offered, they must
be modest in nature and value.
Examples of appropriate prizes may
include opportunities for lunch with
agency officials, agency parking spaces
for a specific time period, and gifts of
minimal financial value. Any special
CFC event and associated prize or gift
must be approved in advance by the
Agency’s ethics official to ensure that
the special event is consistent with
Office of Government Ethics regulations
and its own regulations and policy. No
funds may be raised at these events.
§ 950.503
Sanctions and penalties.
(a)(1) The Director may impose
sanctions or penalties on a federation,
charitable organization or marketing
organization for violating these
regulations, other applicable provisions
of law, or any directive or instruction
from the Director. The Director will
determine the appropriate sanction and/
or penalty, up to and including
expulsion from the CFC. In determining
the appropriate sanction and/or penalty,
the Director will consider previous
violations, harm to Federal employee
confidence in the CFC, and any other
relevant factors. A federation, charitable
organization or marketing organization
will be notified in writing of the
Director’s intent to sanction and/or
penalize and will have 10 business days
from the date of receipt of the notice to
submit a written response. The
Director’s final decision will be
communicated in writing to the
federation, charitable organization or
marketing organization.
(2) The Director may withdraw
federation status with respect to a
National/International, International or
Local federation that makes a false
certification or fails to comply with any
directive of the Director, or to respond
in a timely fashion to a request by the
Director for information or cooperation,
including with respect to an
investigation or in the settlement of
disbursements. As stated in
§ 950.301(d), failure to meet minimum
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federation eligibility requirements shall
not be deemed to be a withdrawal of
federation status subject to a hearing on
the record. Eligibility decisions shall
follow the procedures in § 950.301(f). A
federation will be notified in writing of
the Director’s intent to withdraw
federation status for a period of up to
one campaign and will have 10 business
days from the date of receipt of the
notice to submit a written response. On
receipt of the response, or in the
absence of a timely response, the
Director or representative shall set a
date, time, and place for a hearing. The
federation shall be notified at least 10
business days in advance of the hearing.
A hearing shall be conducted by a
hearing officer designated by the
Director unless it is waived in writing
by the federation. After the hearing is
held, or after the Director’s receipt of the
federation’s written waiver of the
hearing, the Director shall make a final
decision on the record, taking into
consideration the recommendation
submitted by the hearing officer. The
Director’s final decision will be
communicated in writing to the
federation.
(3) A federation, charitable
organization or marketing organization
sanctioned or penalized under any
provision of these regulations must
demonstrate to the satisfaction of the
Director that it has taken corrective
action to resolve the reason for sanction
and/or penalty and has implemented
reasonable and appropriate controls to
ensure that the situation will not occur
again prior to being allowed to
participate in subsequent CFCs.
(b) At the Director’s discretion, CCAs,
payroll offices and Federations may be
directed to suspend distribution of
current and future CFC donations from
Federal employees to recipient
organizations. CCAs, payroll offices and
Federations shall immediately place
suspended contributions in an interest
bearing account until directed to do
otherwise.
mstockstill on DSK4VPTVN1PROD with PROPOSALS
§ 950.504
Records retention.
Federations, CCAs and other
participants in the CFC shall retain
documents pertinent to the campaign
for at least three completed campaigns.
For example, documentation regarding
the 2014 campaign must be retained
through the completion of the 2015,
2016 and 2017 campaigns (i.e. until
early 2019). Documents requested by
OPM must be made available within 10
business days of the request.
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§ 950.505 Sanctions compliance
certification.
Each federation, federation member
and independent organization applying
for participation in the CFC must, as a
condition of participation, complete a
certification that it is in compliance
with all statutes, Executive orders, and
regulations restricting or prohibiting
U.S. persons from engaging in
transactions and dealings with
countries, entities or individuals subject
to economic sanctions administered by
the U.S. Department of the Treasury’s
Office of Foreign Assets Control
(OFAC). Should any change in
circumstances pertaining to this
certification occur at any time, the
organization must notify OPM’s Office
of CFC immediately. OPM will take
such steps as it deems appropriate
under the circumstances, including, but
not limited to, notifying OFAC and/or
other enforcement authorities of such
change, suspending disbursement of
CFC funds not yet disbursed, retracting
(to the extent practicable) CFC funds
already disbursed, and suspending or
expelling the organization from the CFC.
Subpart F—CFC Timetable
§ 950.601
Campaign schedule.
(a) The Combined Federal Campaign
will be conducted according to the
following timetable.
(1) During a period between December
and January, as determined by the
Director, OPM will accept applications
from organizations seeking to be listed
on the Charity List.
(2) The Director will determine a date
after the closing of the receipt of
applications by which the Director will
issue notices to each applicant
organization of the results of the
Director’s review. The date will be part
of the annual timetable issued by the
Director under paragraph (b) of this
section.
(b) The Director will issue a timetable
annually for accepting and processing
applications. The Director will issue the
timetable for a campaign no later than
October 31 of the year preceding the
campaign.
Subpart G—Payroll Withholding
§ 950.701
Payroll allotment.
The policies and procedures in this
section are authorized for payroll
withholding operations in accordance
with the Office of Personnel
Management Pay Administration
regulations in part 550 of this Title.
(a) Applicability. Voluntary payroll
allotments will be authorized by all
Federal departments and agencies for
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20831
payment of charitable contributions to
local CFC organizations.
(b) Allotters. The allotment privilege
will be made available to Federal
personnel as follows:
(1) Employees whose net pay
regularly is sufficient to cover the
allotment are eligible. An employee
serving under an appointment limited to
1 year or less may make an allotment to
a CFC when an appropriate official of
the employing Federal agency
determines that the employee will
continue employment for a period
sufficient to justify an allotment. This
includes military reservists, National
Guard, and other part-time and
intermittent employees who are
regularly employed.
(2) Members of the Uniformed
Services are eligible, excluding those on
only short-term assignment (less than 3
months).
(c) Authorization. Allotments will be
totally voluntary and will be based upon
contributor’s individual authorization.
(1) The CFC Pledge Form, in
conformance with § 950.402, is the only
form for authorization of the CFC
payroll allotment and may be
reproduced. The pledge forms and
official Charity List will be made
available to employees electronically
when charitable contributions are
solicited.
(2) The electronic pledge is
transmitted to the contributor’s
servicing payroll office in real time via
the centralized pledge system.
(d) Duration. Authorization of
allotments will be in the form of a term
allotment. Term authorizations will be
in effect for 1 full year—26, 24, or 12
pay periods depending on the allotter’s
pay schedule—starting with the first pay
period after January 15 and ending with
the last pay period that includes January
15 of the following year. Three months
of employment is considered the
minimum amount of time that is
reasonable for establishing an allotment.
(e) Amount. Allotters will make a
single allotment that is apportioned into
equal amounts for deductions each pay
period during the year.
(1) The minimum amount of the
allotment will not be less than $1 per
payday per charitable organization, with
no restriction on the size of the
increment above that minimum.
(2) No change of amount will be
authorized for term allotments.
(3) No deduction will be made for any
period in which the allotter’s net pay,
after all legal and previously authorized
deductions, is insufficient to cover the
CFC allotment. No adjustment will be
made in subsequent periods to make up
for missed deductions.
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(f) Discontinuance. Term allotments
will be discontinued automatically on
expiration of the 1 year withholding
period, or on the death, retirement, or
separation of the allotter from the
Federal service, whichever is earlier.
(1) An allotter may revoke a term
authorization at any time by requesting
it in writing from the payroll office.
Discontinuance will be effective the first
pay period beginning after receipt of the
written revocation in the payroll office.
(2) A discontinued allotment will not
be reinstated.
(g) Transfer. When an allotter moves
to another organizational unit, whether
in the same office or a different
Department or agency, his or her
allotment authorization must be
transferred to the new payroll office.
Subpart H—Accounting and
Distribution
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§ 950.801
for the accuracy of disbursements it
transmits to recipients. The CCA will
distribute all CFC receipts beginning
April 1, and quarterly thereafter. It shall
remit the contributions to each
organization or to the federation, if any,
of which the organization is a member.
At the close of each disbursement
period, the CFC account shall have a
balance of zero, based on the last
reconciled bank statement.
(3) Federated organizations, or their
designated agents, are responsible for:
(i) The accuracy of distribution among
the charitable organizations of
remittances from the payroll offices
and/or CCA; and
(ii) Arrangements for an independent
audit conducted by a certified public
accountant agreed upon by the
participating charitable organizations.
[FR Doc. 2013–08017 Filed 4–5–13; 8:45 am]
BILLING CODE 6325–46–P
Accounting and distribution.
(a) Remittance. One electronic funds
transfer (EFT) will be transmitted by the
payroll office each pay period, in the
gross amount of deductions on the basis
of current authorizations, to each
charity/federation or to the CCA as
determined by the Director.
(1) Should the distribution be made to
the CCA, the EFT will be accompanied
by an electronic transmittal identifying
the Federal agency, the dates of the pay
period, the pay period number,
employee names and deduction
amounts per individual employee.
(2) [Reserved]
(b) Accounting. (1) OPM may require
Federal payroll offices to oversee the
establishment of individual allotment
accounts, the deductions each pay
period, and the reconciliation of
employee accounts in accordance with
agency and Federal Accounting
Standards and Office of Management
and Budget requirements. OPM may
further require that Federal payroll
offices ensure the accuracy of
remittances, as supported by current
allotment authorizations, and internal
accounting and auditing requirements.
(2) The CCA shall notify the
federations, national and international
organizations, and local organizations as
soon as practicable after the completion
of the campaign, but in no case later
than a date to be determined by OPM,
of the amounts, if any, designated to
them and their member agencies. The
date will be part of the annual timetable
issued by the Director under
§ 950.601(b). The CCA is also
responsible for distributing credit card
receipts and, if determined by the
Director, payroll deductions transmitted
by the payroll offices. It is responsible
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DEPARTMENT OF ENERGY
10 CFR Parts 429 and 430
[Docket No. EERE–2011–BT–TP–0061]
RIN 1904–AC65
Energy Conservation Program for
Consumer Products and Certain
Commercial and Industrial Equipment:
Test Procedures for Showerheads,
Faucets, Water Closets, Urinals, and
Commercial Prerinse Spray Valves
Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Supplemental notice of
proposed rulemaking.
AGENCY:
The U.S. Department of
Energy (DOE) proposes amendments to
its May 2012 notice of proposed
rulemaking related to DOE test
procedures for showerheads, faucets,
water closets, urinals, and commercial
prerinse spray valves. The amendments
proposed in this supplemental notice of
proposed rulemaking include revisions
to the definitions of showerhead and
hand-held showerhead; removal of body
sprays from the proposed showerhead
definition; requirements pertaining to
testing of showerheads that are
components of shower towers; a
standardized test method to be used
when verifying the mechanical retention
of a showerhead flow control insert
when subjected to 8 pounds force;
clarification of permissible trim
adjustments for tank-type water closets;
and amendments to the required static
test pressures to be used when testing
flushometer valve siphonic and blowout
SUMMARY:
PO 00000
Frm 00013
Fmt 4702
Sfmt 4702
water closets. DOE also proposes further
clarification of the definition of basic
model with respect to flushometer valve
water closets and urinals, as well as
associated changes to certification
reporting requirements for these
products.
DOE will accept comments, data,
and information regarding this SNOPR
no later than May 8, 2013. See section
IV, ‘‘Public Participation,’’ for details.
ADDRESSES: Interested parties may
submit comments, identified by docket
number EERE–2011–BT–TP–0061 or
Regulation Identifier Number (RIN)
1904–AC65, by any of the following
methods:
1. Federal eRulemaking Portal:
https://www.regulations.gov. Follow the
instructions for submitting comments.
2. Email: PlumbingPrds-2011–TP–
0061@ee.doe.gov. Include the docket
number and/or RIN in the subject line
of the message.
3. Mail: Ms. Brenda Edwards, U.S.
Department of Energy, Building
Technologies Program, Mailstop EE–2J,
1000 Independence Avenue SW.,
Washington, DC 20585–0121. If
possible, please submit all items on a
CD. It is not necessary to include
printed copies.
4. Hand Delivery/Courier: Ms. Brenda
Edwards, U.S. Department of Energy,
Building Technologies Program, 950
L’Enfant Plaza SW., Suite 600,
Washington, DC 20024. Telephone:
(202) 586–2945. If possible, please
submit all items on a CD. It is not
necessary to include printed copies.
For detailed instructions on
submitting comments and additional
information on the rulemaking process,
see section IV of this document (‘‘Public
Participation’’).
Docket: The docket, including Federal
Register notices, public meeting
attendee lists and transcripts,
comments, and other supporting
documents/materials, is available for
review at regulations.gov. All
documents in the docket are listed in
the regulations.gov index. However, not
all documents listed in the index may
be publicly available, such as
information that is exempt from public
disclosure.
A link to the docket Web page can be
found at: https://www.regulations.gov/#
!docketDetail;dct=FR%252BPR%252BN
%252BO%252BSR%252BPS;rpp=10;
po=0;D=EERE-2011-BT-TP-0061. This
Web page will contain a link to the
docket for this notice on the
regulations.gov site. The regulations.gov
Web page will contain simple
instructions on how to access all
documents, including public comments,
DATES:
E:\FR\FM\08APP1.SGM
08APP1
Agencies
[Federal Register Volume 78, Number 67 (Monday, April 8, 2013)]
[Proposed Rules]
[Pages 20820-20832]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-08017]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 78, No. 67 / Monday, April 8, 2013 / Proposed
Rules
[[Page 20820]]
=======================================================================
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OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 950
RIN 3206-AM68
Solicitation of Federal Civilian and Uniformed Service Personnel
for Contributions to Private Voluntary Organizations
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The United States Office of Personnel Management (OPM) is
issuing a proposed rule to amend the Combined Federal Campaign (CFC)
regulations in order to strengthen the integrity, streamline the
operations and increase the effectiveness of the program to ensure its
continued growth and success.
DATES: OPM must receive comments on or before June 7, 2013.
ADDRESSES: Send written comments to Keith Willingham, Director,
Combined Federal Campaign, U.S. Office of Personnel Management, Room
6484A, 1900 E Street NW., Washington, DC; or email cfc@opm.gov, include
``RIN 3206-AM68'' in the subject line of the message, or FAX to (202)
606-5056 Attn: Keith Willingham. You may also submit comments using the
Federal eRulemaking Portal: https://www.regulations.gov. Follow the
instructions for submitting comments.
FOR FURTHER INFORMATION CONTACT: Mary Capule at mary.capule@opm.gov or
(202) 606-2564.
SUPPLEMENTARY INFORMATION: This proposed rule would replace the current
regulations for the CFC. OPM proposes these new regulations to govern
the solicitation of Federal civilian and uniformed services personnel
at the workplace. These proposed regulations are issued under the
authority delegated to OPM by Executive Order 12353 (March 23, 1982),
47 FR 12785 (Mar. 25, 1982), as amended by Executive Order 12404
(February 10, 1983), 48 FR 6685 (Feb. 15, 1983).
In 2011, the CFC celebrated its 50th anniversary. In connection
with this landmark anniversary, OPM announced the formation of the CFC-
50 Commission. The Commission, formed under the Federal Advisory
Committee Act, was asked to study ways to streamline and improve the
program; improve accountability, increase transparency and
accessibility and make it more affordable.
The Commission delivered its report to the OPM Director on July 20,
2012. The report contained 24 recommendations for improvement in the
following areas: donor participation, CFC infrastructure, and standards
of accountability and transparency.
OPM has reviewed these recommendations. This proposed rule reflects
changes that OPM has concluded will improve the CFC, based on its
experience administering the program and its considered judgment.
(1) Changing the Campaign Solicitation Period. Under current
regulations, the CFC campaign solicitation period runs from September 1
to December 15. OPM proposes to change its regulation at Sec. 950.102
to shift the campaign solicitation period by one month, so that it
would begin on October 1 and end on January 15. This will allow the
many employees who take leave during the month of December to
contribute through the campaign when they return in the month of
January. It also enables employees to consider the impact of future pay
and other benefits (which often take effect the first full pay period
in January) before making donations.
(2) Immediate eligibility. Under current regulations, new employees
may not begin participating in the CFC until the next scheduled
campaign solicitation period begins. OPM proposes to amend its
regulation at Sec. 950.102 to allow new employees to make CFC pledges
immediately upon entering Federal service. Under OPM's proposal, new
employees would be provided information on the CFC at orientation and
be able to make pledges within 30 days of being hired if hired outside
of the solicitation period. This will enable those employees who wish
to make an immediate contribution to do so.
(3) Disaster Relief Program. Under current regulations, the OPM
Director is authorized to allow special solicitations to respond to
disasters. There is no standing mechanism in place, but rather each
disaster requires a new authorization from the Director for a special
solicitation period. OPM proposes to create a permanent structure to
streamline and facilitate solicitations tied to disaster relief.
Accordingly, OPM proposes to amend its regulations at Sec. 950.102 to
provide for the creation of a Disaster Relief Program that would be
available to donors within hours after a disaster.
(4) Local Governance Structure. Currently, the CFC is managed
locally through Local Federal Coordinating Committees (LFCC). The
number of LFCC representatives, the level of engagement, and knowledge
of CFC rules and regulations varies greatly among the 184 campaign
regions in the U.S. and overseas. In some areas, campaigns have
difficulty identifying Federal employees who can dedicate the time to
fulfill the LFCC's oversight responsibilities, including the selection
of a Principal Combined fund Organization (PCFO), review and approval
of reimbursable campaign expenses, review of local charity
applications, and oversight of the PCFO's CFC functions. OPM is
proposing to modify its regulations at Sec. 950.103 to change the LFCC
to a Regional Coordinating Committee (RCC) structure. Under this
proposed change, the Director would maintain sole authority with regard
to any revisions to the established geographical regions, establish
limits for the RCC Chair, set requirement for a Vice Chair and
establish new requirements for Agency head to appoint employees to
assist with the campaign. At a minimum, the RCCs will be comprised of
representatives of Federal inter-agency organizations, such as Federal
Executive Boards and Federal Executive Associations, or personnel
assigned to the military installation and/or Federal agency identified
as the lead agency in that region. The responsibilities of the RCC will
be similar to those of the LFCC with the exception of the selection and
oversight of a PCFO. OPM believes the reduction in responsibilities, in
addition to larger campaign regions from which members will be
selected, will attract more individuals to serve in this important
leadership role.
[[Page 20821]]
(5) Electronic Donations. OPM proposes to modify Sec. 950.103 to
eliminate the use of cash, check and money order contributions.
Instead, all donations will be required to be made through electronic
means. Electronic transfers are now widely available and by moving to
an exclusively electronic donation system, we will increase the
efficiency of administration of the CFC program, eliminate burdensome
paperwork, and save resources.
(6) Training and Oversight. OPM proposes to modify Sec. 950.104 to
provide for additional training and oversight of the RCC. The training
will be conducted by OPM staff and will focus on oversight
responsibilities, charity eligibility requirements, and how to select a
marketing organization and review/approve its reimbursable marketing
expenses.
(7) Elimination of Paper Processes. OPM is also proposing to modify
Sec. 950.104 to eliminate paper processes within the CFC as much as
possible. Specifically, OPM proposes changes in this section to
eliminate printing and distributing the Charity List. Rather, this list
will be made available exclusively through electronic means. This
change will reduce overhead costs and increase efficiency in the
administration of the CFC program.
(8) Streamlining Campaign Administration. Under current
regulations, many campaign administration functions are performed by a
number of Principal Combined Fund Organizations (PCFOs) supporting
local campaigns throughout the country. We believe that a centralized
approach will benefit from economies of scale and ultimately reduce
overhead costs. Accordingly, OPM proposes to modify its regulations at
Sec. 950.105 to eliminate the PCFOs. In their place, we propose to
consolidate responsibilities for back office functions and establish
one or more Central Campaign Administrators (CCA). The CCA would either
perform these functions itself or would set up regional receipt and
disbursement centers. We further propose that the RCC may engage a
marketing firm to continue outreach to Federal, Postal and military
personnel, functions currently coordinated by the PCFOs.
(9) Administrative Costs. Currently, the overhead administrative
costs of much of the CFC program are paid for out of donor
contributions to the campaign. We believe that more transparency with
respect to administrative overhead would be beneficial to the program,
to the donors, and to the charitable organization that receive
donations through the program. Accordingly, OPM proposes that the cost
of the campaign previously outlined in Sec. 950.106 instead be
recovered through application fees paid by the charitable organizations
that apply for participation in the CFC. This section also establishes
how the fees will be collected and the permissible uses of the fees.
(10) Streamlined Application Process. OPM believes there are
efficiencies to be gained in its charity application process. We are
proposing to modify the regulations at Sec. 950.201 to reduce the
burden on charities that have previously been admitted to participate
in the program. Thus, these charities would be required to produce a
more limited specified set of documents, via a reduced application
form, to be admitted for the subsequent two years. We think this
approach will afford us with sufficient information to evaluate the
charity's continuing eligibility while reducing unnecessary
administrative burdens on the charity.
(11) Audit of Small Charities. OPM is proposing to modify its
regulations at Sec. 950.203 to waive the audit requirement for
organizations reporting less than $100,000 in annual revenue to the
IRS. In addition, we propose that an organization with annual revenue
of at least $100,000 but less than $250,000 not be required to undergo
an audit, but have their statements reviewed by an independent
certified public accounting firm. This would remove a disproportionate
burden on small charities.
(12) Oversight of Federations. OPM proposes to strengthen its
regulations regarding federations to increase accountability and
transparency. OPM proposes changes to Sec. 950.301 to specify that
federations provide a copy of each member organization's application,
require dates upon which disbursements must be made to members, adds
additional reporting requirements, and prohibit deductions of dues/fees
from the disbursement of CFC contributions.
(13) Payroll Deduction Disbursements. OPM has decided to
standardize and improve how payroll offices provide donor pledge
reports to campaigns. OPM proposes changes to former Sec. 950.901
(Sec. 950.801 in these proposed regulations) to require payroll
offices to either distribute funds to the charities directly or, if
funds are transmitted to the CCA, provide more detailed reports.
Currently, Federal payroll office disbursement reports vary in format
and level of detail, which adds to the administrative costs of the
campaign administrators responsible for ensuring the accuracy of
disbursements to designated charities.
These proposed changes will introduce efficiencies and cost savings
into the CFC by leveraging technology that was not widely available
just a few years ago. They will make the CFC more efficient, more
transparent, more accountable and more relevant to Federal, Postal and
military service personnel who want to make the biggest impact with
their donations.
While these proposals would make significant changes in the
operation of the CFC, OPM remains committed to ensuring the broad
participation of a multitude of charities in the CFC, and to preserving
the local character, sense of community, and employee involvement that
has been a hallmark of the CFC. We welcome comments on how to best
maintain these important attributes as we take steps to improve the CFC
for the future.
Section-by-Section Analysis
Section 950.101 Definitions. Definitions were reviewed and updated
to conform to the proposed regulatory changes. Accordingly, we propose
to eliminate terms no longer applicable (Campaign Period, Designated
Funds, Domestic Area, Local Federal Coordinating Committee (LFCC),
Overseas Area, Principal Combined Fund Organization (PCFO),
Undesignated Funds), add new terms (Campaign Expenses, Central Campaign
Administrator (CCA), Charity Application Fees, Regional Coordinating
Committee (RCC)), and revise definitions of some of the terms that
remain in place (Administrative Expenses, Charity List, Organization or
Charitable Organization, Solicitation).
Section 950.102 Scope of the Combined Federal Campaign. Adjusts
solicitation dates to October 1-January 15 from September 1-December
15. This shift addresses concerns about having the campaign end in
December, while maintaining the current length of the solicitation
period, as well as eliminating the requirement for the LFCC to
establish campaign dates. It also provides the opportunity for new
employees to pledge within 30 days if hired outside the solicitation
period, and establishes standard guidance for Disaster Relief support.
Section 950.103 Establishing Regional Coordinating Committees.
Changes Local Federal Coordinating Committee (LFCC) to Regional
Coordinating Committee (RCC) to better reflect the proposed
responsibilities of this committee of Federal personnel. Requires
appointment of RCC Chair and Vice Chair, limits Chair term to no more
than 3 consecutive years. Establishes new requirement for Agency heads
to
[[Page 20822]]
appoint employees in support of the campaign. Eliminates use of cash,
check and money order, limits pledging to electronic means using only
payroll deduction or credit cards, and also eliminates restriction on
soliciting non-Federal personnel. Removes campaign boundaries with
regard to donors, as universal giving is supported in a completely
electronic process.
Section 950.104 Regional Coordinating Committee responsibilities.
Provides for a transition from a large number of ''local'' campaigns to
a smaller number of ``regions,'' requiring a reduced number of Federal
personnel for oversight purposes. Requires committee members to gain a
complete understanding of regulations and procedures by attending
specific training and achieving certification in RCC operations.
Eliminates the local application review responsibility, and tasks the
RCC to assist OPM with application review as assigned. Reassigns the
responsibility for training the campaign personnel from the PCFO to the
RCC. Establishes the ability for RCC to hire campaign marketing
support. Eliminates the need for Loaned Executives in a fully
electronic pledging environment.
Section 950.105 Federal Agency Head responsibilities. Outlines
specific responsibilities of Agency Heads to include identification of
employees in support of the campaign. Previously defined duties are
also indicated to include providing support to the campaign, becoming
familiar with the regulations, and assuring the campaign is conducted
in accordance with those regulations.
Section 950.106 Central Campaign Administrator (CCA) Establishes
CCA requirements, roles and functions and eliminates requirement for
PCFO and all references thereto. Provides guidance for circumstances
where no qualified CCA can be retained.
Section 950.107 Campaign Expense recovery. Shifts the expense of
the campaign from the donor to the charities via a charity application
fee and changes PCFO expenses to campaign expenses (CCA and marketing
costs).
Section 950.108 Preventing Coercive activity. No changes.
Section 950.109 Avoidance of Conflict of Interest. Removed
references to LFCC and PCFO, added reference to RCC.
Section 950.110 Prohibited discrimination. Updated to meet current
legal standards.
Section 950.201 Charity eligibility. Combines all current charity
eligibility guidance into one subpart, eliminating separate sections
for national/international and local. Eliminates annual application
requirement and instead establishes a streamlined verification process
for two ``renewal'' years after the year in which the initial full
application is approved.
Section 950.202 Charity eligibility requirements. Establishes in
one section requirements for national/international and local
charities. Codifies several OPM guidance memoranda into the regulation
(2006-21 and 2008-08). Removes requirement to submit IRS verification
letter if the organization can be verified in the IRS Business Master
File (BMF). Outlines verification requirements for local affiliates,
churches and Family Support and Youth Activities/Family Support and
Youth Programs FSYA/FSYPs.
Section 950.203 Public accountability standards. Specifies
`calendar year' where previous reference was unclear and updated sample
dates. Specifies requirement for US or International Accounting
Standards, and modifies transition levels for audit requirements.
Removes requirement for Attachment A of IRS Form 990, and removes
definition of `pro forma 990' so requirements can be modified easily as
the IRS updates the form.
Section 950.204 Eligibility decisions and appeals. All local
eligibility requirements merged from this section into section 950.203.
New section 950.204 establishes process for decisions and appeals in
lieu of certified or registered mail. Codifies appeal information in
OPM guidance memorandum 2012-03.
Section 950.301 Federation eligibility. Establishes specific
requirements, combining national/international and local federation
eligibility requirements into one section. Requires federations to
submit a copy of each member organization's application as outlined in
the Charity Eligibility section. Specifies `calendar year' where
previous reference was unclear.
Section 950.302 Responsibilities of federations Combines national/
international and local federation responsibilities into one section.
Establishes requirement for federations to disburse funds to members on
a quarterly basis, and prohibits federations from deducting fees or
charges from disbursements made to member organizations. Requires that
CFC funds are identified as such when payments that include non-CFC
funds are made to member organizations.
Section 950.401 Campaign and publicity information. Removes
references to PCFO, changes references from LFCC to RCC. Eliminates use
of paper Charity List and pledge form, as all donations must be entered
electronically. Removes the undesignated gift option. Removes guidance
for confidential gifts as gifts will be made electronically. Adds
requirement and references for credit card usage. Adds the
organization's Web site address as a standardized item in each charity
list entry, and revises the 25 word statement to a 256 character
statement.
Section 950.402 Pledge form Removes use of paper pledge forms, and
all references thereto. Also removes undesignated option, as well as
all references with regard to undesignated pledging.
Section 950.501 Release of contributor information. Eliminates
references to PCFO, and replaces those references with CCA. Requires
federations to provide donor information to its member organizations in
a specific time frame. Codifies CFC Memo 2003-2.
Section 950.502 Solicitation methods. Prohibits fund raising at
events and activities, eliminates references to specific CFC events and
activities, and requires that Agencies obtain approval from ethics
officials to approve all events and activities.
Section 950.503 Sanctions and penalties. Removes all references to
PCFO and LFCC, and added references to CCA where appropriate.
Section 950.504 Records retention. Changed PCFO reference to CCA.
Updated years in sample dates.
Section 950.505 Sanctions compliance certification. Corrects
``unaffiliated'' to ``independent.'' Corrects official name of OPM's
Office of CFC (OCFC).
Section 950.601 Campaign schedule. Eliminates references to
National/International applicants since all applications and
eligibility process requirements apply to all charities. Eliminates
references to PCFO and LFCC regarding specifics of local application
review process which has been eliminated.
Section 950.701 Payroll allotment. Eliminates references to paper
pledge forms, which have been discontinued. Changes dates of payroll
deductions to coincide with new extended solicitation period. Changes
minimum pledge to $1 per pay period per designated charity.
Section 950.801 Accounting and Distribution. Outlines requirement
for remittance and transmission of funds by payroll offices to CCA or
charities. Changes references from PCFO to CCA, outlines requirements
for distribution of credit card funds.
[[Page 20823]]
Regulatory Flexibility Act
I certify that these regulations would not have a significant
economic impact on a substantial number of small entities because they
would reduce reporting and recordkeeping requirements for small
organizations that wish to participate in the CFC.
Executive Order 13563 and Executive Order 12866
This proposed rule has been reviewed by the Office of Management
and Budget in accordance with Executive Order 13563 (January 18, 2011),
76 FR 3821 (Jan. 21, 2011), and Executive Order 12866 (September 30,
1993), 58 FR 51735 (Oct. 4, 1993).
List of Subjects in 5 CFR Part 950
Administrative practice and procedure, Charitable contributions,
Government employees, Military personnel, Nonprofit organizations,
Reporting and recordkeeping requirements.
U.S. Office of Personnel Management.
John Berry,
Director.
Accordingly, the U.S. Office of Personnel Management is proposing
to revise 5 CFR part 950 to read as follows:
PART 950--SOLICITATION OF FEDERAL CIVILIAN AND UNIFORMED SERVICE
PERSONNEL FOR CONTRIBUTIONS TO PRIVATE VOLUNTARY ORGANIZATIONS
Subpart A--General Provisions
Sec.
950.101 Definitions.
950.102 Scope of the Combined Federal Campaign.
950.103 Establishing Regional Coordinating Committees.
950.104 Regional Coordinating Committee responsibilities.
950.105 Federal Agency Head responsibilities.
950.106 Central Campaign Administrator (CCA).
950.107 Campaign expense recovery.
950.108 Preventing coercive activity.
950.109 Avoidance of conflict of interest.
950.110 Prohibited discrimination.
Subpart B--Eligibility Provisions
950.201 Charity eligibility.
950.202 Charity eligibility requirements.
950.203 Public accountability standards.
950.204 Eligibility decisions and appeals.
Subpart C--Federations
950.301 Federation eligibility.
950.302 Responsibilities of federations.
Subpart D--Campaign Information
950.401 Campaign and publicity information.
950.402 Pledge form.
Subpart E--Miscellaneous Provisions
950.501 Release of contributor information.
950.502 Solicitation methods.
950.503 Sanctions and penalties.
950.504 Records retention.
950.505 Sanctions compliance certification.
Subpart F--CFC Timetable
950. 601 Campaign schedule.
Subpart G--Payroll Withholding
950.701 Payroll allotment.
Subpart H--Accounting and Distribution
950.801 Accounting and distribution.
Authority: E.O. 12353 (March 23, 1982), 47 FR 12785 (March 25,
1982), 3 CFR, 1982 Comp., p. 139; E.O. 12404 (February 10, 1983), 48
FR 6685 (February 15, 1983); Pub. L. 100-202, and Pub. L. 102-393 (5
U.S.C. 1101 Note).
Subpart A--General Provisions
Sec. 950.101 Definitions.
As used in this part:
Administrative Expenses means the overhead costs of the
participating organization based on information from the Internal
Revenue Service Form 990.
Campaign Expenses means the cost of the administration of the
campaign by the Central Campaign Administrator and any regional
marketing organizations.
Central Campaign Administrator means the organization(s)
responsible for developing and maintaining the CFC Web site and charity
application module, and to which OPM may assign responsibility for
making distributions to charities.
Charity Application Fees means the charge to charities applying for
listing in the CFC to pay the Campaign Expenses.
Charity List means the official list of charities approved by OPM
for inclusion in the CFC.
Combined Federal Campaign or Campaign or CFC means the charitable
fundraising program established and administered by the Director of the
Office of Personnel Management (OPM) pursuant to Executive Order No.
12353, as amended by Executive Order No. 12404, and all subsidiary
units of such program.
Director means the Director of the Office of Personnel Management
or his/her designee.
Employee means any person employed by the Government of the United
States or any branch, unit, or instrumentality thereof, including
persons in the civil service, uniformed service, foreign service, and
the postal service.
Family Support and Youth Activities (FSYA) means an organization on
a domestic military base recognized by the Department of Defense as
providing programs for military families on the base.
Family Support and Youth Programs (FSYP) means an organization on a
non-domestic military base recognized by the Department of Defense as
providing programs for military families on the base.
Federation or Federated Group means a group of voluntary charitable
human health and welfare organizations created to supply common
fundraising, administrative, and management services to its constituent
members.
Independent Organization means a charitable organization that is
not a member of a federation for the purposes of the Combined Federal
Campaign.
International General Designation Option means an option available
to donors under which his or her gift is distributed to all of the
international organizations listed in the International Section of the
Charity List in the same proportion as all of the international
organizations received designations in the local CFC. This option will
have the code IIIII.
International Organization means a charitable organization that
provides services either exclusively or in a substantial preponderance
to persons in areas outside of the United States.
Organization or Charitable Organization means a non-profit,
philanthropic, human health and welfare organization.
Regional Coordinating Committee means the group of Federal
officials designated by the Director to oversee the CFC in a region and
to assist the Director with the charity application reviews.
Solicitation means any action requesting a monetary donation,
either by payroll deduction or credit card, on behalf of charitable
organizations.
Sec. 950.102 Scope of the Combined Federal Campaign.
(a) The CFC is the only authorized solicitation of employees in the
Federal workplace on behalf of charitable organizations. A campaign may
be conducted only during the period running from October 1 through
January 15. It must be conducted at every Federal agency in accordance
with the regulations in this part. No other monetary solicitation on
behalf of charitable organizations may be conducted in the Federal
workplace, except as follows:
(1) Federal agencies must provide information about the CFC to new
employees at orientation. New employees may make pledges within 30 days
of hiring if hired outside of the campaign period.
[[Page 20824]]
(2) The Director may grant permission for solicitations of Federal
employees, outside the CFC, in support of victims in cases of
emergencies and disasters. Emergencies and disasters are defined as any
hurricane, tornado storm, flood, high water, wind-driven water, tidal
wave, tsunami, earthquake, volcanic eruption, landslide, mudslide,
snowstorm, drought, fire, explosion, or other catastrophe in any part
of the world. Any special solicitations will be managed through a
Disaster Relief Program developed by OPM.
(b) The regulations in this part do not apply to the collection of
gifts-in-kind, such as food, clothing and toys, or to the solicitation
of Federal employees outside of the Federal workplace as defined by the
applicable Agency Head consistent with General Services Administration
regulations and any other applicable laws or regulations.
(c) The Director may exercise general supervision over all
operations of the CFC, and take all necessary steps to ensure the
achievement of campaign objectives, including but not limited to the
following:
(1) Any disputes relating to the interpretation or implementation
of this part may be submitted to the Director for resolution. The
decisions of the Director are final for administrative purposes.
(2) The Director may audit, investigate, and report on the
administration of any campaign, the organization that administers the
campaign, and any national, international and local federation,
federation member or independent organization that participates in the
campaign for compliance with these regulations. The Director may
resolve any issues reported and assess sanctions or penalties, as
warranted under Sec. 950.503.
(d) Current Federal civilian and active duty military employees may
be solicited for contributions using payroll deduction 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 by electronic means, including credit cards,
as approved by the Director.
(e) Heads of departments or agencies may establish policies and
procedures applicable to solicitations conducted by organizations
composed of civilian employees or members of the uniformed services
among their own members for organizational support or for the benefit
of welfare funds for their members. Such solicitations are not subject
to these regulations, and therefore do not require permission of the
Director.
Sec. 950.103 Establishing Regional Coordinating Committees.
(a) The Director, in his or her sole discretion, will establish,
maintain, and, from time to time, revise an official list of campaign
regions.
(b) For each campaign region, the Director will establish a
Regional Coordinating Committee (RCC) for the purpose of governing the
campaign for that region. The RCC shall consist of the following:
(1) A minimum of three members to be drawn from local Federal
inter-agency organizations, such as Federal Executive Boards and
Federal Executive Associations, or from personnel assigned to the
military installation and/or agency identified as the lead agency in
that region;
(2) Representation from local Federal agencies; and
(3) If approved by the Director, representatives of employee unions
and other employee groups.
(c) The members of each RCC must select a Chair and a Vice Chair.
The Chair and Vice Chair positions will be rotated among the RCC
members. The term of the Chair and Vice Chair may not exceed three
consecutive years. Any RCC Chair or Vice Chair is subject to removal by
the Director, in his sole and unreviewable discretion.
(d) The RCC will ensure that, to the extent reasonably possible,
every employee is given the opportunity to participate in the CFC.
Sec. 950.104 Regional Coordinating Committee responsibilities.
(a) The RCC is to serve as the central source of information
regarding the CFC among Federal employees in their region. All members
of the RCC must develop an understanding of campaign regulations and
procedures.
(b) The responsibilities of the RCC members include, but are not
limited to, the following:
(1) Attend required RCC training and obtain certification in RCC
operations;
(2) Maintain minutes of RCC meetings and respond promptly to any
request for information from the Director;
(3) Name a RCC Chair and Vice Chair and notify the Director when
there is a change in either position;
(4) Assist in determining the eligibility of organizations that
apply to participate in the campaign as required and assigned by OPM;
(5) Provide training to employees in the methods of non-coercive
solicitation;
(6) Provide instructions to employees regarding the process for
making donations and designating the charitable organizations to
receive their donations.
(7) Take appropriate measures to protect potential donors from
coercion to participate in the campaign.
(8) Bring any allegations of potential donor coercion to the
attention of the employee's agency and provide a mechanism to review
employee complaints of undue coercion in Federal fundraising. Federal
agencies shall provide procedures and assign responsibility for the
investigation of such complaints. The agency official responsible for
conducting the campaign is responsible for informing employees of the
proper channels for pursuing such complaints.
(9) Notify the Director of issues concerning the campaign that the
RCC cannot resolve by applying these regulations. The RCC must abide by
the Director's decisions on all matters concerning the campaign.
(10) Monitor the work of the marketing organization, ensuring
compliance with these regulations, as well as performance as outlined
in agreement between the RCC and the marketing organization.
(11) Review, approve and provide authorization to the Central
Campaign Administrator for payments to the marketing organization in an
efficient and effective manner as outlined in the agreement.
(c) The RCC may hire an organization to provide regional operation
marketing support to their campaign, including developing marketing
plans and materials, employee training, and campaign event and activity
support.
Sec. 950.105 Federal Agency Head responsibilities.
(a) The agency head at each Federal installation within a campaign
area should:
(1) Become familiar with all CFC regulations.
(2) Cooperate with the members of the RCC in organizing and
conducting the campaign.
(3) Initiate official campaigns within their offices or
installations and provide support for the campaign.
(4) Assure the campaign is conducted in accordance with these
regulations.
(5) Appoint an employee to oversee the Agency campaign.
(6) Establish a network of employees in support of the Agency's
campaign.
(b) Agency heads may not discontinue solicitation of Federal
employees during the campaign solicitation period within their
organization without the written approval of the Director.
[[Page 20825]]
Sec. 950.106 Central Campaign Administrator (CCA).
(a) OPM may contract with one or more organizations classified by
the Internal Revenue Service as 501(c)(3) organizations, to perform the
centralized fiscal and administrative functions of the CFC. One
organization will be responsible for developing and maintaining a
centralized Web site for the CFC that will include an online
application function for charities applying to participate in the CFC
and an online pledging function for Federal donor use. All
organizations will be responsible for disbursing funds received from
the Federal payroll offices or service providers. If OPM contracts with
more than one organization, the disbursement responsibilities will be
divided between them based on Federal Shared Service Centers and
Federal payroll offices. For example, if OPM contracts with four
organizations, one would handle all agencies that use National Finance
Center as their Shared Service Center. Only non-CFC participating
organizations may be selected as CCAs.
(b) In the event that there is no qualified CCA, no workplace
solicitation of any Federal employee may be authorized and CFC payroll
allotments would not be accepted or honored.
Sec. 950.107 Campaign expense recovery.
(a) The costs of the regional marketing approved by the RCC,
training and traveling for the RCC, and CCA will be recovered through
application fees paid by charitable organizations applying for
participation in the CFC. The fee structure will be determined annually
by the Director based on estimated costs of administering the campaign.
This structure will be announced no later than October 31 of the year
preceding the campaign. Any excess funds from applications fees over
expenses will be rolled over to the following campaign and be
considered when setting the rates. Marketing expenses will not exceed a
percentage of receipts as determined by the Director. No expenses for
food or entertainment may be reimbursed to the marketing firm. Only
travel related food expenses may be reimbursed to the RCC in accordance
with the Federal Travel Regulations.
(b) Charity application fees are due at the time of the filing of
the application or the application deadline, whichever occurs last. A
charity that has not paid the full application fee at that time may not
participate in the CFC that campaign year.
(c) Charity application fees will not be refunded, even if the
charity has withdrawn its application or fails to meet the public
accountability standards or eligibility requirements for participation.
Sec. 950.108 Preventing coercive activity.
True voluntary giving is fundamental to Federal fundraising
activities. Actions that do not allow free choices or create the
appearance that employees do not have a free choice to give or not to
give, or to publicize their gifts or to keep them confidential, are
contrary to Federal fundraising policy. Activities contrary to the non-
coercive intent of Federal fundraising policy are not permitted in
campaigns. They include, but are not limited to:
(a) Solicitation of employees by their supervisor or by any
individual in their supervisory chain of command. This does not
prohibit the head of an agency to perform the usual activities
associated with the campaign kick-off and to demonstrate his or her
support of the CFC in employee newsletters or other routine
communications with the Federal employees.
(b) Supervisory inquiries about whether an employee chose to
participate or not to participate or the amount of an employee's
donation. Supervisors may be given nothing more than summary
information about the major units that they supervise.
(c) Setting of 100 percent participation goals.
(d) Establishing personal dollar goals and quotas.
(e) Developing and using lists of non-contributors.
(f) Providing and using contributor lists for purposes other than
the routine collection and forwarding of contributions and allotments,
and as allowed under Sec. 950.501.
(g) Using as a factor in a supervisor's performance appraisal the
results of the solicitation in the supervisor's unit or organization.
Sec. 950.109 Avoidance of conflict of interest.
Any Federal employee who serves on the RCC, or as a Federal agency
fundraising program employee, shall not serve in any official capacity
or participate in any decisions where, because of membership on the
board or other affiliation with a charitable organization, there could
be or appear to be a conflict of interest under any statute,
regulation, Executive order, or applicable agency standards of conduct.
Sec. 950.110 Prohibited discrimination.
Discrimination for or against any individual or group on account of
race, ethnicity, color, religion, sex (including pregnancy and gender
identity), national origin, age, disability, sexual orientation,
genetic information, or any other non-merit-based factor is prohibited
in all aspects of the management and the execution of the CFC. Nothing
herein denies eligibility to any organization, which is otherwise
eligible under this part to participate in the CFC, merely because such
organization is organized by, on behalf of, or to serve persons of a
particular race, ethnicity, color, religion, sex, gender identity,
national origin, age, disability, sexual orientation, or genetic
background.
Subpart B--Eligibility Provisions
Sec. 950.201 Charity eligibility.
(a) The Director shall annually:
(1) Determine the timetable and other procedures regarding
application for inclusion in the Charity List; and
(2) Determine which organizations among those that apply qualify to
be included in the National/International, International and Local
parts of the Charity List. In order to determine whether an
organization may participate in the campaign, the Director may request
evidence of corrective action regarding any prior violation of
regulation or directive, sanction, or penalty, as appropriate. The
Director retains the ultimate authority to decide whether the
organization has demonstrated, to the Director's satisfaction, that the
organization has taken appropriate corrective action. Failure to
demonstrate satisfactory corrective action or to respond to the
Director's request for information within 10 business days of the date
of the request may result in a determination that the organization will
not be included in the Charity List.
(b) The Charity List will include each organization's CFC code and
other information as determined by OPM.
(c) A charity must submit the full application the initial year it
applies to participate in the CFC. In lieu of a full application, a
charity may submit a verification application for the two years
immediately following its submission of a full application.
(1) A verification application consists of certification of all
applicable statements required by Sec. Sec. 950.202 and 950.203, and
submission of an IRS Form 990 or pro forma IRS Form 990, as defined in
Sec. 950.203(a)(3).
(2) An organization that did not apply or was not approved for
participation in the preceding campaign must submit a full application.
[[Page 20826]]
Sec. 950.202 Charity eligibility requirements.
(a) The requirements for an organization to be listed in the
Charity List shall include the following:
(1) Certification that it provides or conducts real services,
benefits, assistance, or program activities, in 15 or more different
states or one or more foreign countries over the 3 calendar year period
immediately preceding January 1 of the campaign application year. A
schedule listing a detailed description of the services in each state
(minimum 15) or foreign countries (minimum 1), including the year of
service and documenting the location and date and year of each service,
and the number of beneficiaries of each such service must be included
with the CFC application. The schedule must make a clear showing of
national or international presence. Broad descriptions of services and
identical repetitive narratives will not be accepted in the sole
discretion of OPM if they do not allow OPM to adequately determine that
real services were provided or to accurately determine the individuals
or entities who benefited. It must be clear in the documentation
submitted that the organization provided at least one human health and
welfare service in the calendar year prior to the year for which the
organization is applying. Publications or other documents in lieu of a
schedule detailing this information are not acceptable.
(i) Local charitable organizations are not required to have
provided services or benefits in 15 states or a foreign country over
the prior 3 years. The schedule for local organizations is only
required to document services in their local area. Local organizations
must also certify that the Organization Address submitted with the
application is the primary location where the organization's services
are rendered and/or its records are maintained.
(ii) This requirement cannot be met solely by the provision of
services via telephone, unless the service is emergency in nature such
as a suicide prevention hotline. The requirement is also not met solely
by disseminating information and publications via the U.S. Postal
Service or the Internet, unless it meets the criteria for web-based
services as described in Sec. 950.202(a)(1)(iii), or a combination
thereof.
(iii) Real services or benefits for web-based service organizations
may be considered if the organization provides service logs or other
records indicating the geographic distribution of users in each state.
The organization must demonstrate the scope of services received by
users over the three-year period immediately preceding the start of the
campaign year involved. Reports that reflect only the number of hits or
visits to a Web site are not sufficient to establish the provision of
real services. In addition, two of the three following types of
information must be provided to demonstrate the provision of real
services, benefits, assistance, or program activities:
(A) Evidence that recipients, including members of the general
public, dues paying members or affiliate organizations, have registered
for use of the Web site;
(B) Summary reports that document customer feedback, through
service satisfaction or utilization surveys or other mechanisms; and
(C) Documented evidence that recipients of web-based services paid
a fee for the service.
(iv) Providing listings of affiliated groups does not demonstrate
provision of real services by the applicant. Location of residence of
organization members or location of residence of visitors to a facility
does not substantiate provision of services. Schedules that describe
activities conducted by an entity other than the applicant, such as a
chapter or a support group, must include information documenting the
applicant's role in the delivery of the service. Details may include
items such as whether the chapter is funded by the applicant or how the
applicant assisted in the delivery of the service. Applications that
fail to include a description of how the applicant itself provides
service may result in a denial.
(v) Organizations that provide student scholarships or fellowships
must indicate the state in which the recipient resides, not the state
of the school or place of fellowship. Mere dissemination of information
does not demonstrate acceptable provision of real services.
(vi) While it is not expected that an organization maintain an
office in each state or foreign country, a clear showing must be made
of the actual services, benefits, assistance or activities provided in
each state or foreign country. Organizations that provide services in
one location may only count the state in which the services are
provided toward their eligibility to participate on the national
charity list. However, an organization may have beneficiaries from
several states and want service to those beneficiaries considered
toward the 15-state requirement to participate on the national Charity
List. If an organization can document that the services are subsidized
or were provided free-of-charge, and list the value of those services
to each of the beneficiaries, then the service to the beneficiary may
be considered a service in the state of the beneficiary's residence,
similar to a financial grant or scholarship. For example, a medical
institution providing free housing to family members of the patient
during the length of the patient's stay must list the location of the
medical institution, the city/state of residence of each beneficiary,
the dates of service, and the value of the housing provided to each
beneficiary's family members.
(vii) An organization's role in providing information to the media,
such as authorship of an article for a newspaper, magazine, or journal,
or serving as an interviewee or reference for a television news
program, or the authorship of a book, does not in itself constitute a
real service for CFC purposes. Likewise, the production and/or
distribution of information, such as a report based on research,
surveys conducted by the applicant organization, or publication of a
policy position paper, does not, in itself, constitute an eligible
service. With regard to media-related activities, research, and
reports, the applicant must describe the manner in which beneficiaries
requested or used the document or information in order to establish the
provision of a real services, benefit, assistance, or program activity.
(viii) De minimis services, benefits, assistance, or other program
activities in any state or foreign country will not be accepted as a
basis for qualification as a national or international organization.
Factors that OPM will consider in determining whether an organization's
services, benefits, assistance or other program activities are de
minimis include, but are not limited to: nature and extent of the
service, benefit, assistance or activity; frequency, continuity, and
duration; value of financial assistance awarded to individuals or
entities; impact on, or benefit to, beneficiaries; and number of
beneficiaries.
(2) Certification that it is an organization recognized by the
Internal Revenue Service as tax exempt under 26 U.S.C. 501(c)(3) to
which contributions are deductible under 26 U.S.C. 170(c)(2). The CFC
will verify that each applicant's name and Employer Identification
Number appears in the IRS Business Master File (BMF). If the
organization does not appear in the BMF, one of the following must
accompany the application:
(i) An affirmation letter from the IRS, dated on or after January 1
of the campaign year to which the
[[Page 20827]]
organization is applying, that verifies the organization's current
501(c)(3) tax-exempt status.
(ii) A local affiliate of a national organization that is not
separately incorporated must submit a certification from the Chief
Executive Officer (CEO) or CEO equivalent of the national organization
stating that it operates as a bonafide chapter or affiliate in good
standing of the national organization and is covered by the national
organization's 26 U.S.C. 501(c)(3) tax exemption. The letter must be
signed and dated on or after October 1 of the calendar year preceding
the campaign year for which the organization is applying.
(iii) For central organizations that are churches, the CFC will
accept a copy of its most recently published listing (such as a church
directory) of section 501(c)(3) organizations that are included in the
group exemption held by the central organization. A subordinate may
alternatively obtain a letter from the central organization affirming
the subordinate's status as an organization exempt under section
501(c)(3) of the Internal Revenue Code that is included in the group
exemption held by the central organization.
(iv) Family Support and Youth Activities (FSYA) located on military
installations in the United States and Family Support and Youth
Programs (FSYP) located on military installations overseas must provide
a copy of certification by the commander of a military installation, as
outlined in paragraphs (a)(3) and (4) of this section, to demonstrate
tax-exempt status.
(3) Family support and youth activities or programs certified by
the commander of a military installation as meeting the eligibility
criteria contained in paragraphs (a)(3) and (4) of this section may
appear on the list of local organizations and be supported from CFC
funds. Family support and youth activities may participate in the CFC
as a member of a federation at the discretion of the certifying
commander.
(4) A family support and youth activity or program must:
(i) Be a nonprofit, tax-exempt organization that provides family
service programs or youth activity programs to personnel in the Command
and be a Non-Appropriated Fund Instrumentality that supports the
installation MWR/FSYA/FSYP program. The activity must not receive a
majority of its financial support from appropriated funds.
(ii) Have a high degree of integrity and responsibility in the
conduct of their affairs. Contributions received must be used
effectively for the announced purposes of the organization.
(iii) Be directed by the base Non-Appropriated Fund Council or an
active voluntary board of directors which serves without compensation
and holds regular meetings.
(iv) Conduct its fiscal operations in accordance with a detailed
annual budget, prepared and approved at the beginning of the fiscal
year. Any significant variations from the approved budget must have
prior authorization from the Non-Appropriated Fund Council or the
directors. The family support and youth activities must have accounting
procedures acceptable to an installation auditor and the inspector
general.
(v) Have a policy and practice of nondiscrimination on the basis of
race, color, religion, sex, sexual orientation, gender identity or
national origin applicable to persons served by the organization.
(vi) Prepare an annual report which includes a full description of
the organization's activities and accomplishments. These reports must
be made available to the public upon request.
(b) [Reserved]
Sec. 950.203 Public accountability standards.
(a) To ensure organizations wishing to solicit donations from
Federal employees in the workplace are portraying accurately their
programs and benefits, each organization seeking eligibility must meet
annually applicable standards and certification requirements. Each
organization, other than FSYA or FSYP, wishing to participate must:
(1) Certify that the organization is a human health and welfare
organization providing services, benefits, or assistance to, or
conducting activities affecting, human health and welfare. The
organization's application must provide documentation describing the
health and human welfare benefits provided by the organization within
the previous calendar year;
(2) Subject to the exceptions listed in this section, certify that
it accounts for its funds on an accrual basis in accordance with United
States or International generally accepted accounting principles and
that an audit of its fiscal operations is completed annually by an
independent certified public accountant in accordance with generally
accepted auditing standards. A copy of the organization's most recent
annual audited financial statements must be included with the
application. The statements must include all statements required for
voluntary health and welfare organizations by the United States
Financial Accounting Standards Board or the International Accounting
Standards Board. The audited financial statements must cover the fiscal
period ending not more than 18 months prior to the January of the year
of the campaign for which the organization is applying. For example,
the audited financial statements included in the 2014 application must
cover the fiscal period ending on or after June 30, 2012.
(i) An organization with annual revenue of less than $100,000
reported on its IRS Form 990 or pro forma IRS Form 990 submitted to the
CFC is not required to undergo an audit, submit audited financial
statements, or to account for its funds on an accrual basis in
accordance with generally accepted accounting principles. Rather, the
organization must certify that it has controls in place to ensure that
funds are properly accounted for and that it can provide accurate and
timely financial information to interested parties.
(ii) An organization with annual revenue of at least $100,000 but
less than $250,000 is not required to undergo an audit. The
organization must certify that its financial statements are reviewed by
an independent certified public accountant on an annual basis or are
audited by an independent public accountant on an annual basis. A copy
of the reviewed or audited financial statements must be included with
the application.
(3) Certify that it prepares and submits to the IRS a complete copy
of the organization's IRS Form 990 or that it is not required to
prepare and submit an IRS Form 990 to the IRS. Provide a completed copy
of the organization's IRS Form 990 submitted to the IRS covering a
fiscal period ending not more than 18 months prior to the January of
the year of the campaign for which the organization is applying,
including signature, and all supplemental schedules, with the
application, or if not required to file an IRS Form 990, provide a pro
forma IRS Form 990. Pro forma IRS Form 990 instructions will be posted
on the OPM Web site and included in the application instructions. IRS
Forms 990EZ, 990PF, and comparable forms are not acceptable
substitutes. The IRS Form 990 and audited financial statements, if
required, must cover the same fiscal period.
(4) Provide a computation of the organization's percentage of total
support and revenue spent on administrative and fundraising. This
percentage shall be computed from information on the IRS Form 990
[[Page 20828]]
submitted pursuant to paragraph (a)(3) of this section.
(5) Certify that the organization is directed by an active and
responsible governing body whose members have no material conflict of
interest and, a majority of which serve without compensation.
(6) Certify that the organization's fundraising practices prohibit
the sale or lease of its CFC contributor lists.
(7) Certify that its publicity and promotional activities are based
upon its actual program and operations, are truthful and non-deceptive,
and make no exaggerated or misleading claims.
(8) Certify that contributions are effectively used for the
announced purposes of the charitable organization.
(9) Provide a statement that the certifying official is authorized
by the organization to certify and affirm all statements required for
inclusion on the Charity List.
(b) The Director shall review these applications for accuracy,
completeness, and compliance with these regulations. Failure to supply
any of this information may be judged a failure to comply with the
requirements of public accountability, and the charitable organization
may be ruled ineligible for inclusion on the Charity List.
(c) The Director may request such additional information as the
Director deems necessary to complete these reviews. An organization
that fails to comply with such requests within 10 calendar days from
the date of receipt of the request may be judged ineligible.
(d) The required certifications and documentation must have been
completed and submitted prior to the application filing deadline.
(e) The Director may waive any of these standards and
certifications upon a showing of extenuating circumstances.
Sec. 950.204 Eligibility decisions and appeals.
(a) Organizations applying for participation in the CFC will be
notified of the eligibility decision electronically via the email
address(es) listed in the charity application.
(b) Organizations that apply and are denied eligibility for
inclusion on the Charity List may appeal the decision by submitting a
request for reconsideration. This request must be received within 10
business days from the date the decision to deny eligibility was sent
via email and shall be limited to those facts justifying the reversal
of the original decision.
(c) All appeals must:
(1) Be in writing;
(2) Be received by the Director within 10 business days of the date
the decision to deny the application was sent via email;
(3) Include a statement explaining the reason(s) why eligibility
should be granted; and
(4) Include a copy of the communication from OPM disapproving the
original application and supporting information to justify the reversal
of the original decision.
(d) Applications or appeals of an adverse eligibility determination
must be submitted in a timely manner as indicated above.
(e) Appeals may not be used to supplement applications with
documents that did not exist or were not set forth in final form prior
to the application deadline. For example, audited financial statements
that were not prepared or were in draft form at the time of the
deadline cannot be used to document eligibility. Similarly, charities
that had applied for, but had not obtained, 501(c)(3) status from the
IRS by the CFC application deadline are not eligible to participate for
that campaign year.
(f) The Director's decision is final for administrative purposes.
Subpart C--Federations
Sec. 950.301 Federation eligibility.
(a) The Director may recognize federations that conform to the
requirements set by the Director and are eligible to receive
designations. In order to determine whether the Director will recognize
a federation, the Director may request evidence of corrective action
regarding any prior violation of regulation or directive, sanction, or
penalty, as appropriate. The Director retains the ultimate authority to
decide whether the federation has demonstrated, to the Director's
satisfaction, that the federation has taken appropriate corrective
action. Failure to demonstrate satisfactory corrective action or to
respond to the Director's request for information within 10 business
days of the date of the request may result in a determination that the
federation will not be included in the Charity List. The Director also
reserves the authority to place a moratorium on the recognition of
federations from time to time.
(b) By applying for inclusion in the CFC, federations consent to
allow the Director complete access to its and its members' CFC books
and records and to respond to requests for information by the Director.
(c) An organization may apply to the Director for inclusion as a
federation to participate in the CFC if the applicant has, as members
of the proposed federation, 15 or more charitable organizations, in
addition to the federation itself, that meet the eligibility criteria
of Sec. Sec. 950.202 and 950.203. The federation must submit the
applications of all its proposed member organizations annually.
(d) After an organization has been granted federation status, it
may certify that its member organizations meet all eligibility criteria
of Sec. 950.202 and Sec. 950.203 to be included on the Charity List.
Federation status in a prior campaign is not a guarantee of federation
status in a subsequent campaign. Failure to meet minimum federation
eligibility requirements shall not be deemed to be a withdrawal of
federation status subject to a hearing on the record.
(e) An applicant for federation status must annually certify and/or
demonstrate:
(1) That all member organizations seeking participation in the CFC
are qualified for inclusion on the National/International or
International or Local part of the Charity List. Applicants must
provide a complete list of those member organizations it certified in
addition to each organization's complete application.
(2) That it meets the eligibility requirements and public
accountability standards contained in Sec. 950.202 and Sec. 950.203.
The federation can demonstrate that it has met the eligibility
requirement in Sec. 950.202(a) either through its own services,
benefits, assistance or program activities or through its 15 members'
activities.
(i) The federation must complete the certification set forth at
Sec. 950.203(a)(2) without regard to the amount of revenue reported on
its IRS Form 990 and must provide a copy of its audited financial
statements. The audited financial statements provided must verify that
the federation is honoring designations made to each member
organization by distributing a proportionate share of receipts based on
donor designations to each member. The audit requirement is waived for
newly created federations operating for less than two years from the
date of its IRS tax-exemption letter to the closing date of the CFC
application period.
(ii) The federation must provide a listing of its board of
directors, beginning and ending dates of each member's current term of
office, and the board's meeting dates and locations for the calendar
year prior to the year of the campaign for which the organization is
applying.
(3) That it does not employ in its CFC operations the services of
private consultants, consulting firms, advertising agencies or similar
business organizations to perform its policy-
[[Page 20829]]
making or decision-making functions in the CFC. It may, however,
contract with entities or individuals such as banks, accountants,
lawyers, and other vendors of goods and/or services to assist in
accomplishing its administrative tasks.
(f) The Director will notify a federation if it is determined that
the federation does not meet the eligibility requirements of this
section. A federation may appeal an adverse eligibility decision in
accordance with Sec. 950.204.
(g) The Director may waive any eligibility criteria for federation
status if it is determined that such a waiver will be in the best
interest of the CFC.
(h) Two organizations--American Red Cross and United Service
Organization--are exempt from the 15-member requirement of paragraph
(c) of this section.
Sec. 950.302 Responsibilities of federations.
(a) Federations must ensure that only those member organizations
that comply with all eligibility requirements included in these
regulations are certified for participation in the CFC.
(b) The Director may elect to review, accept or reject the
certifications of the eligibility of the members of federations. If the
Director requests information supporting a certification of
eligibility, that information shall be furnished promptly. Failure to
furnish such information within 10 business days of the receipt of the
request constitutes grounds for the denial of national eligibility of
that member.
(c) Each federation, as fiscal agent for its member organizations,
must ensure that Federal employee designations are honored in that each
member organization receives its proportionate share of receipts based
on the results of each individual campaign. The proportionate share of
receipts is determined by donor designations to the individual member
organization as compared to total campaign designations.
(d) Federations must disburse CFC funds to each member organization
without any further deductions. Membership dues, fees, or other charges
to member organizations must be assessed outside of the CFC
disbursement process.
(e) Federations must disburse CFC funds to member organizations on
a quarterly basis, at a minimum. The disbursements must be made within
the months of June, September, December, and March.
(f) Disbursements to federation members that include funds from a
non-CFC campaign must include a report that clearly identifies the
amount of CFC funds.
Subpart D--Campaign Information
Sec. 950.401 Campaign and publicity information.
(a) The specific campaign marketing and publicity information will
be developed locally, except as specified in the regulations in this
subpart. All information must be reviewed and approved by the RCC for
compliance with these regulations and will be developed and supplied by
the RCC or contracted agent.
(b) During the CFC solicitation period, participating CFC
organizations may distribute bona fide educational information
describing its services or programs. The organization must be granted
permission by the Federal agency installation head, or designee to
distribute the material. CFC Other employees or members of the RCC, are
not authorized to grant permission for the distribution of such
information. If one organization is granted permission to distribute
educational information, then the Federal agency installation head must
allow any other requesting CFC organization to distribute educational
information.
(c) Organizations and federations are encouraged to publicize their
activities outside Federal facilities and to broadcast messages aimed
at Federal employees in an attempt to solicit their contributions
through the media and other outlets.
(d) Agency Heads are further authorized to permit the distribution
by organizations of promotional information to Federal personnel in
public areas of Federal workplaces in connection with the CFC, provided
that the manner of distribution accords equal treatment to all
charitable organizations furnishing such information for local use, and
further provided that no such distribution shall utilize Federal
personnel on official duty or interfere with Federal government
activities. RCC members and other campaign personnel are to be
particularly aware of the prohibition of assisting any charitable
organization or federated group in distributing any type of literature,
especially during the campaign. Nothing in this section shall be
construed to require a RCC to distribute or arrange for the
distribution of any material other than RCC approved marketing
materials.
(e) The Campaign Charity List and pledge form are the official
sources of CFC information and shall be made available in electronic
format to all potential contributors. The Charity List and pledging
system must inform employees of their right to make a choice to
contribute or not to contribute.
(f) Campaign marketing materials must be comprised of a simple and
attractive design that is donor focused and has fundraising appeal and
essential working information. The design must focus on the CFC without
undue use of charitable organization symbols and logos or other
distractions that compete for the donor's attention.
(g) The following applies specifically to the campaign Charity
List:
(1) OPM will provide the approved Charity List as well as general
campaign information. This will include:
(i) An explanation of the payroll deduction privilege.
(ii) A description and explanation of other electronic pledging, to
include credit cards.
(iii) A statement that the donor may only designate charitable
organizations or federations that are listed in the Charity List and
that write-ins are prohibited.
(iv) Instructions as to how an employee may obtain more specific
information about the programs and the finances of the organizations
participating in the campaign.
(v) A description of employees' rights to pursue complaints of
undue pressure or coercion in Federal fundraising activities.
(2) The Charity List will consist of National/International,
International, and Local organizations. The order of these
organizations will be rotated annually in accordance with OPM
instructions. The order of listing of the federated and independent
organizations will be determined by a random selection process. The
order of organizations within each federation will be determined by the
federation. The order within the National/International, International
and Local independent groups will be alphabetical. Absent specific
instructions from OPM to the contrary, each participating organization
and federated group listing must include a description, not to exceed
256 characters, of its services and programs, plus a Web site address
and telephone number for the Federal donor to obtain further
information about the group's services, benefits, and administrative
expenses. Each listing will include the organization's administration
and fundraising percentage as calculated pursuant to Sec.
950.203(a)(4). Neither the percentage of administrative and fundraising
expenses, nor the Web site address or telephone number count toward the
256 character description.
(3) Each federation and charitable organization will be assigned a
code in
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a manner determined by the Director. At the beginning of each federated
group's listing will be the federation's name, code number, 256
character description, percentage of administrative and fundraising
expenses, Web site address and telephone number. Each organization will
be identified as National/International, International and Local,
respectively.
(h) Listing of national and local affiliate. Listing of a national
organization, as well as its local affiliate organization, is
permitted. Each national or local organization must individually meet
all of the eligibility criteria and submit independent documentation as
required in Sec. 950.202 and Sec. 950.203 to be included in the
Charity List. However, a local affiliate of a national organization
that is not separately incorporated, in lieu of its own 26 U.S.C.
501(c)(3) tax exemption letter and, to the extent required by Sec.
950.203(a)(2), audited financial statements, may submit the national
organization's 26 U.S.C. 501(c)(3) tax exemption letter and audited
financial statements, but must provide its own pro forma IRS Form 990,
as defined inSec. 950.203(a)(3), for CFC purposes. The local affiliate
must submit a certification from the Chief Executive Officer (CEO) or
CEO equivalent of the national organization stating that it operates as
a bonafide chapter or affiliate in good standing of the national
organization and is covered by the national organization's 26 U.S.C.
501(c)(3) tax exemption, IRS Form 990 and audited financial statements.
(i) Listing local offices. Listing of a local organization, as well
as its satellite offices, is permitted, as long as there is no more
than one location within a county or parish. Each office must
individually meet all of the eligibility criteria and submit
independent documentation as required in Sec. 950.202 and Sec.
950.203 to be included in the Charity List. However, a satellite office
that is not separately incorporated, in lieu of its own 26 U.S.C.
501(c)(3) tax exemption letter and, to the extent required by Sec.
950.203(a)(2), audited financial statements, may submit the local
organization's 26 U.S.C. 501(c)(3) tax exemption letter and audited
financial statements, but must provide its own pro forma IRS Form 990,
as defined in Sec. 950.203(a)(3), for CFC purposes. The satellite
office must submit a certification from the Chief Executive Officer
(CEO) or CEO equivalent of the local organization stating that it
operates as a bonafide office in good standing and is covered by the
local organization's 26 U.S.C. 501(c)(3) tax exemption, IRS Form 990
and audited financial statements.
(j) Multiple listing prohibited. Except as provided in paragraphs
(h) and (i) of this section, once an organization is deemed eligible,
it is entitled to only one listing in the Charity List, regardless of
the number of federations to which that organization belongs.
Sec. 950.402 Pledge form.
(a) The Director will provide guidance with regard to the data
required for electronic pledge processing.
(b) An employee may not make a designation to an organization not
listed in the Charity List. All pledges must be designated to specific
CFC participating organization(s). No undesignated pledges will be
allowed.
Subpart E--Miscellaneous Provisions
Sec. 950.501 Release of contributor information.
(a) The pledge form, designed pursuant to Sec. 950.402, must allow
a contributor to indicate if the contributor will allow his or her
name, contribution amount, and home contact information to be forwarded
to the charitable organization or organizations designated.
(b) The pledge form shall permit a contributor to specify which
information, if any, he or she wishes released to organizations
receiving his or her donations.
(c) It is the responsibility of the CCA to forward the contributor
information for those who have indicated that they wish this
information to be released to the recipient organization directly, if
the organization is independent, and to the organization's federation
if the organization is a member of a federation. The contributor
information must be forwarded as soon as practicable after the
completion of the campaign, but in no case later than a date to be
determined by OPM. The date will be part of the annual timetable issued
by the Director under Sec. 950.601(b). The federation is responsible
for ensuring the information is released to the appropriate member
organization. The CCA may not sell or make any other use of this
information. Federations may not retain donor information for their own
use unless the donor made a direct designation to the federation
itself. This policy also prohibits the sharing of donor information,
even free of charge.
Sec. 950.502 Solicitation methods.
(a) Employee solicitations shall be conducted during duty hours
using methods that permit true voluntary giving and shall reserve to
the individual the option of disclosing any gift or keeping it
confidential. Campaign kick-offs, victory events, awards, and other
non-solicitation events to build support for the CFC are encouraged.
(b) Special CFC events, are permitted during the campaign if
approved by the appropriate agency head or government official,
consistent with agency ethics regulations. No costs for food or
entertainment at a special event may be charged to the CFC. CFC special
events must be undertaken in the spirit of generating interest in the
CFC and be open to all individuals without regard to whether an
individual participates in the CFC. If prizes are offered, they must be
modest in nature and value. Examples of appropriate prizes may include
opportunities for lunch with agency officials, agency parking spaces
for a specific time period, and gifts of minimal financial value. Any
special CFC event and associated prize or gift must be approved in
advance by the Agency's ethics official to ensure that the special
event is consistent with Office of Government Ethics regulations and
its own regulations and policy. No funds may be raised at these events.
Sec. 950.503 Sanctions and penalties.
(a)(1) The Director may impose sanctions or penalties on a
federation, charitable organization or marketing organization for
violating these regulations, other applicable provisions of law, or any
directive or instruction from the Director. The Director will determine
the appropriate sanction and/or penalty, up to and including expulsion
from the CFC. In determining the appropriate sanction and/or penalty,
the Director will consider previous violations, harm to Federal
employee confidence in the CFC, and any other relevant factors. A
federation, charitable organization or marketing organization will be
notified in writing of the Director's intent to sanction and/or
penalize and will have 10 business days from the date of receipt of the
notice to submit a written response. The Director's final decision will
be communicated in writing to the federation, charitable organization
or marketing organization.
(2) The Director may withdraw federation status with respect to a
National/International, International or Local federation that makes a
false certification or fails to comply with any directive of the
Director, or to respond in a timely fashion to a request by the
Director for information or cooperation, including with respect to an
investigation or in the settlement of disbursements. As stated in Sec.
950.301(d), failure to meet minimum
[[Page 20831]]
federation eligibility requirements shall not be deemed to be a
withdrawal of federation status subject to a hearing on the record.
Eligibility decisions shall follow the procedures in Sec. 950.301(f).
A federation will be notified in writing of the Director's intent to
withdraw federation status for a period of up to one campaign and will
have 10 business days from the date of receipt of the notice to submit
a written response. On receipt of the response, or in the absence of a
timely response, the Director or representative shall set a date, time,
and place for a hearing. The federation shall be notified at least 10
business days in advance of the hearing. A hearing shall be conducted
by a hearing officer designated by the Director unless it is waived in
writing by the federation. After the hearing is held, or after the
Director's receipt of the federation's written waiver of the hearing,
the Director shall make a final decision on the record, taking into
consideration the recommendation submitted by the hearing officer. The
Director's final decision will be communicated in writing to the
federation.
(3) A federation, charitable organization or marketing organization
sanctioned or penalized under any provision of these regulations must
demonstrate to the satisfaction of the Director that it has taken
corrective action to resolve the reason for sanction and/or penalty and
has implemented reasonable and appropriate controls to ensure that the
situation will not occur again prior to being allowed to participate in
subsequent CFCs.
(b) At the Director's discretion, CCAs, payroll offices and
Federations may be directed to suspend distribution of current and
future CFC donations from Federal employees to recipient organizations.
CCAs, payroll offices and Federations shall immediately place suspended
contributions in an interest bearing account until directed to do
otherwise.
Sec. 950.504 Records retention.
Federations, CCAs and other participants in the CFC shall retain
documents pertinent to the campaign for at least three completed
campaigns. For example, documentation regarding the 2014 campaign must
be retained through the completion of the 2015, 2016 and 2017 campaigns
(i.e. until early 2019). Documents requested by OPM must be made
available within 10 business days of the request.
Sec. 950.505 Sanctions compliance certification.
Each federation, federation member and independent organization
applying for participation in the CFC must, as a condition of
participation, complete a certification that it is in compliance with
all statutes, Executive orders, and regulations restricting or
prohibiting U.S. persons from engaging in transactions and dealings
with countries, entities or individuals subject to economic sanctions
administered by the U.S. Department of the Treasury's Office of Foreign
Assets Control (OFAC). Should any change in circumstances pertaining to
this certification occur at any time, the organization must notify
OPM's Office of CFC immediately. OPM will take such steps as it deems
appropriate under the circumstances, including, but not limited to,
notifying OFAC and/or other enforcement authorities of such change,
suspending disbursement of CFC funds not yet disbursed, retracting (to
the extent practicable) CFC funds already disbursed, and suspending or
expelling the organization from the CFC.
Subpart F--CFC Timetable
Sec. 950.601 Campaign schedule.
(a) The Combined Federal Campaign will be conducted according to
the following timetable.
(1) During a period between December and January, as determined by
the Director, OPM will accept applications from organizations seeking
to be listed on the Charity List.
(2) The Director will determine a date after the closing of the
receipt of applications by which the Director will issue notices to
each applicant organization of the results of the Director's review.
The date will be part of the annual timetable issued by the Director
under paragraph (b) of this section.
(b) The Director will issue a timetable annually for accepting and
processing applications. The Director will issue the timetable for a
campaign no later than October 31 of the year preceding the campaign.
Subpart G--Payroll Withholding
Sec. 950.701 Payroll allotment.
The policies and procedures in this section are authorized for
payroll withholding operations in accordance with the Office of
Personnel Management Pay Administration regulations in part 550 of this
Title.
(a) Applicability. Voluntary payroll allotments will be authorized
by all Federal departments and agencies for payment of charitable
contributions to local CFC organizations.
(b) Allotters. The allotment privilege will be made available to
Federal personnel as follows:
(1) Employees whose net pay regularly is sufficient to cover the
allotment are eligible. An employee serving under an appointment
limited to 1 year or less may make an allotment to a CFC when an
appropriate official of the employing Federal agency determines that
the employee will continue employment for a period sufficient to
justify an allotment. This includes military reservists, National
Guard, and other part-time and intermittent employees who are regularly
employed.
(2) Members of the Uniformed Services are eligible, excluding those
on only short-term assignment (less than 3 months).
(c) Authorization. Allotments will be totally voluntary and will be
based upon contributor's individual authorization.
(1) The CFC Pledge Form, in conformance with Sec. 950.402, is the
only form for authorization of the CFC payroll allotment and may be
reproduced. The pledge forms and official Charity List will be made
available to employees electronically when charitable contributions are
solicited.
(2) The electronic pledge is transmitted to the contributor's
servicing payroll office in real time via the centralized pledge
system.
(d) Duration. Authorization of allotments will be in the form of a
term allotment. Term authorizations will be in effect for 1 full year--
26, 24, or 12 pay periods depending on the allotter's pay schedule--
starting with the first pay period after January 15 and ending with the
last pay period that includes January 15 of the following year. Three
months of employment is considered the minimum amount of time that is
reasonable for establishing an allotment.
(e) Amount. Allotters will make a single allotment that is
apportioned into equal amounts for deductions each pay period during
the year.
(1) The minimum amount of the allotment will not be less than $1
per payday per charitable organization, with no restriction on the size
of the increment above that minimum.
(2) No change of amount will be authorized for term allotments.
(3) No deduction will be made for any period in which the
allotter's net pay, after all legal and previously authorized
deductions, is insufficient to cover the CFC allotment. No adjustment
will be made in subsequent periods to make up for missed deductions.
[[Page 20832]]
(f) Discontinuance. Term allotments will be discontinued
automatically on expiration of the 1 year withholding period, or on the
death, retirement, or separation of the allotter from the Federal
service, whichever is earlier.
(1) An allotter may revoke a term authorization at any time by
requesting it in writing from the payroll office. Discontinuance will
be effective the first pay period beginning after receipt of the
written revocation in the payroll office.
(2) A discontinued allotment will not be reinstated.
(g) Transfer. When an allotter moves to another organizational
unit, whether in the same office or a different Department or agency,
his or her allotment authorization must be transferred to the new
payroll office.
Subpart H--Accounting and Distribution
Sec. 950.801 Accounting and distribution.
(a) Remittance. One electronic funds transfer (EFT) will be
transmitted by the payroll office each pay period, in the gross amount
of deductions on the basis of current authorizations, to each charity/
federation or to the CCA as determined by the Director.
(1) Should the distribution be made to the CCA, the EFT will be
accompanied by an electronic transmittal identifying the Federal
agency, the dates of the pay period, the pay period number, employee
names and deduction amounts per individual employee.
(2) [Reserved]
(b) Accounting. (1) OPM may require Federal payroll offices to
oversee the establishment of individual allotment accounts, the
deductions each pay period, and the reconciliation of employee accounts
in accordance with agency and Federal Accounting Standards and Office
of Management and Budget requirements. OPM may further require that
Federal payroll offices ensure the accuracy of remittances, as
supported by current allotment authorizations, and internal accounting
and auditing requirements.
(2) The CCA shall notify the federations, national and
international organizations, and local organizations as soon as
practicable after the completion of the campaign, but in no case later
than a date to be determined by OPM, of the amounts, if any, designated
to them and their member agencies. The date will be part of the annual
timetable issued by the Director under Sec. 950.601(b). The CCA is
also responsible for distributing credit card receipts and, if
determined by the Director, payroll deductions transmitted by the
payroll offices. It is responsible for the accuracy of disbursements it
transmits to recipients. The CCA will distribute all CFC receipts
beginning April 1, and quarterly thereafter. It shall remit the
contributions to each organization or to the federation, if any, of
which the organization is a member. At the close of each disbursement
period, the CFC account shall have a balance of zero, based on the last
reconciled bank statement.
(3) Federated organizations, or their designated agents, are
responsible for:
(i) The accuracy of distribution among the charitable organizations
of remittances from the payroll offices and/or CCA; and
(ii) Arrangements for an independent audit conducted by a certified
public accountant agreed upon by the participating charitable
organizations.
[FR Doc. 2013-08017 Filed 4-5-13; 8:45 am]
BILLING CODE 6325-46-P