Solicitation of Federal Civilian and Uniformed Service Personnel for Contributions to Private Voluntary Organizations, 20820-20832 [2013-08017]

Agencies

• Office of Personnel Management

[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]


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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.

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Federal Register / Vol. 78, No. 67 / Monday, April 8, 2013 / Proposed 
Rules

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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.

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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

[[Page 20830]]

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