Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
15.905,
15.935,
41.400,
26 U.S.C.
501(c)(3)
NECESSITY, FUNCTION, AND CONFORMITY:
KRS 18A.030
and
18A.110
require the Secretary of Personnel to promulgate comprehensive administrative
regulations for the classified and unclassified service. 2022 Ky. Acts ch. 75,
sec. 21 requires the Personnel Cabinet to promulgate administrative regulations
to require the Kentucky Employees Charitable Campaign to include the Child
Victims' Trust Fund as a participating charitable organization. This
administrative regulation establishes procedures and requirements for the
Kentucky Employees Charitable Campaign.
Section
1. Definitions.
(1) "Charitable
federation" means a legally constituted grouping, made up of or supporting at
least ten (10) health and human welfare organizations, all of which:
(a) Qualify as exempt voluntary charitable
organizations pursuant to
26 U.S.C.
501(c)(3); and
(b) Have a substantial Kentucky
presence.
(2) "Child
Victims' Trust Fund" means the fund established by
KRS
41.400 and administered in accordance with
KRS
15.935 by the State Child Abuse and Neglect
Prevention Board established by
KRS
15.905.
(3) "Designated nonprofit agency" means an
organization with proof of tax-exempt status pursuant to
26 U.S.C.
501(c)(3) written in on a
pledge card by a state employee as a choice to receive contributions.
(4) "State employee" means a person,
including an elected public official, who is employed by a department, board,
agency, or branch of state government, except one (1) relating to a state
college or university.
(5)
"Substantial Kentucky presence" means a facility, staffed by professionals or
volunteers, available to provide its services and open at least fifteen (15)
hours a week and with a regional or statewide presence that meets the
requirements of Section 2(2) of this administrative regulation.
Section 2. Requirements for the
Kentucky Employees Charitable Campaign.
(1)
General Purpose. The purpose of the Kentucky Employees Charitable Campaign
shall be to:
(a) Provide an opportunity for
employees to contribute to eligible Kentucky organizations through the state's
payroll deduction process;
(b)
Ensure accountability for participants in regard to the funds raised;
(c) Encourage the involvement of state
employees as responsible citizens;
(d) Give recognition to state employee
volunteers; and
(e) Minimize
workplace disruption and administrative costs to Kentucky taxpayers by allowing
only one (1) statewide payroll deduction charitable solicitation per
year.
(2) An
organization shall be considered to have a substantial Kentucky presence if the
requirements established in this subsection are met.
(a) Services shall be available to state
employees in the local community.
(b) Services shall directly benefit human
beings whether children, youth, adults, the aged, the ill and infirm, or the
mentally or physically disabled.
(c) Services shall consist of:
1. Care, research, education, or prevention
in the fields of human health or social adjustment and
rehabilitation;
2. Relief for
victims of natural disasters and other emergencies; or
3. Assistance to those who are impoverished
and in need of food, shelter, clothing, and basic human welfare
services.
(3)
The secretary shall approve a charitable organization for participation in the
campaign if the charitable organization demonstrates:
(a) Proof of tax exempt status pursuant to
26 U.S.C.
501(c)(3);
(b) Proof of current registration and
compliance with the reporting requirements of the Secretary of State and the
Office of the Attorney General;
(c)
Proof of financial responsibility, including:
1. Adoption of a detailed annual
budget;
2. Use of generally
accepted accounting principles and procedures;
3. The board of directors' approval for
deviations from the approved budget; and
4. An annual financial audit;
(d) Proof of direction by an
active volunteer board of directors, which shall meet regularly and whose
members shall serve without compensation;
(e) A written nondiscrimination
policy;
(f) Public disclosure of
fundraising administrative costs with a statement demonstrating that, if fund
and administrative expenses are in excess of twenty-five (25) percent of total
support and revenue, actual expenses for those purposes are reasonable under
all the circumstances in its case; and
(g) Publication of an annual report available
to the general public, which includes a full description of the organization's
Kentucky activities including fundraising activities.
(4) Nothing in subsections (2) or (3) of this
section shall prevent the Child Victims' Trust Fund from being eligible to
participate in the Kentucky Employees Charitable Campaign as a charitable
organization.
(5) A charitable
federation may apply on behalf of all their member organizations if both the
federation and all federation members meet the criteria established in
subsection (3) of this section.
(6)
Authority of the Secretary of Personnel.
(a)
The Secretary of Personnel shall have the full authority over the procedures
and policies relating to the operation of the Kentucky Employees Charitable
Campaign.
(b) The secretary shall
designate a group of state employees to compose the Kentucky Employees
Charitable Campaign Committee to make recommendations on related
matters.
(c) The committee shall be
composed of a cross-section of state employees, involving the large cabinets
and small agencies.
(d) The chair
of the committee shall be appointed by the secretary.
(7) Functions of the committee. The committee
shall make recommendations on:
(a) The
designation of a campaign administrator who shall:
1. Serve for a minimum period of two (2)
years; and
2. Be charged to manage
and administer the charitable fund campaign for the Commonwealth, subject to
the direction and control of the Secretary of Personnel. The campaign
administrator shall have statewide workplace campaign experience and have the
necessary staff and volunteer support to administer the Kentucky Employees
Charitable Campaign;
(b)
The establishment of the minimum amount, based on cost effectiveness, that an
employee may authorize to be deducted for each approved charitable
federation;
(c) The format of the
brochure, pledge card, or other promotional materials for the annual
campaign;
(d) The dates and
duration of the campaign;
(e) The
annual campaign budget submitted by the campaign administrator; and
(f) The costs of the campaign, which shall
be:
1. Detailed in the budget; and
2. Borne by each recipient organization
proportionally.
(8) Charitable federations to apply for
statewide campaign.
(a) A federation desiring
inclusion shall apply by February 15 of each year.
(b) A federation that has previously
participated in the campaign shall update its application with a letter and a
copy of the most recent year's audit.
(c) A charitable organization that has
previously participated in the campaign shall be eligible if it fulfills all
conditions of eligibility.
(9) The campaign administrator. The campaign
administrator shall:
(a) Provide staffing to
manage and administer the annual campaign, which includes preparing drafts of
campaign materials for consideration by the Secretary of Personnel;
(b) Serve as the central accounting point for
both campaign cash and for payroll deductions received from the Personnel
Cabinet including:
1. The preparation and
submission of an annual campaign budget. Costs of the campaign shall be divided
among recipient organizations; and
2. A separate account maintained for managing
the income and expenses of the campaign;
(c) Distribute campaign funds received from
the Personnel Cabinet to participating organizations in accordance with agreed
upon time periods. This shall include distribution of funds to designated
nonprofit agencies;
(d) Provide an
end-of-campaign report to the Secretary of Personnel and to participating
organizations; and
(e) Annually
furnish a financial statement prepared by a certified public
accountant.
STATUTORY AUTHORITY:
KRS 18A.030,
18A.110,
2022 Ky. Acts ch. 75, sec. 21