Solicitation of Federal Civilian and Uniformed Service Personnel for Contributions to Private Voluntary Organizations

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 950

RIN 3206-AG50

Solicitation of Federal Civilian and Uniformed Service Personnel

for Contributions to Private Voluntary Organizations

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management (OPM) is issuing final

regulations governing the solicitation of Federal civilian and

uniformed personnel for contribution to private voluntary organizations

under the authority of Executive Order 12353 (March 23, 1982). Combined

Federal Campaign (CFC) participants and OPM's Inspector General have

indicated a need for clarifying or changing current procedures for

soliciting Federal employees in the workplace. These changes improve

procedural operations and accountability for the annual charitable

solicitation campaign conducted by Federal personnel in their

Government workplaces and set forth ground rules under which charitable

organizations may receive contributions from Federal personnel through

the CFC.

EFFECTIVE DATE: November 24, 1995.

FOR FURTHER INFORMATION CONTACT:

Jeffrey C. Lee, 202-606-2564.

SUPPLEMENTARY INFORMATION: These regulations are to implement a number

of procedural changes to the operations of the Combined Federal

Campaign (CFC). The final regulations contain most of the provisions

proposed in the February 16, 1995 Federal Register; they include, but

are not limited to:

More clearly defining the scope and meaning of workplace

solicitations in the Federal Government;

Identification of the circumstances where the Director may

authorize solicitations of Federal employees in the workplace outside

of the CFC;

Clarification of procedural requirements for charitable

organizations seeking participation in the CFC;

Expanding local eligibility by defining and enumerating criteria

for organizations that provide services on a statewide basis;

Removing all general designation options not required by statute;

Expanding the solicitation methods and the pool of potential

donors.

Other provisions contained in the proposed regulations were not

retained in the final version. Several hundred comments were received

and considered. The following provisions received overwhelming

objections and were deleted:

Expanding the duration of a payroll allotment to an unlimited term

or ``perpetual pledge'' proved to be administratively undesirable and

potentially adverse;

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Authorizing a fee of 15 percent of undesignated funds to the PCFO

proved to create an appearance of conflict of interest;

Automatic ineligibility for organizations that exceed the 25

percent administrative and fundraising expenses cap for more than 2

years proved to be unreasonable given the totality of circumstances.

These regulations are consistent with the restrictions placed on

OPM by section 618 of the Treasury, Postal Service, and General

Government Appropriations Act for 1988.

Regulatory Flexibility Act

I certify that these regulations will not have a significant

economic impact on a substantial number of small entities because it

will only effect those charitable organizations that participate in the

CFC.

Paperwork Reduction Act

The collection of information requirements in this part have been

approved by the Office of Management and Budget and assigned OMB

control number 3206-0131.

List of Subjects in 5 CFR Part 950

Administrative practice and procedures, Charitable contributions,

Government employee, Military personnel, Nonprofit organizations,

Reporting and recordkeeping requirements.

U.S. Office of Personnel Management.

Lorraine A. Green,

Deputy Director.

Accordingly, OPM is revising 5 CFR part 950 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 a local campaign.

950.104 Local Federal Coordinating Committee responsibilities.

950.105 Principal Combined Fund Organization (PCFO)

responsibilities.

950.106 PCFO expense recovery.

950.107 Lack of a qualified PCFO.

950.108 Preventing coercive activity.

950.109 Avoidance of conflict of interest.

950.110 Prohibited discrimination.

Subpart B--Eligibility Provisions

950.201 National list eligibility.

950.202 National list eligibility requirements.

950.203 Public accountability standards.

950.204 Local list eligibility.

950.205 Appeals.

Subpart C--Federations

950.301 National federations eligibility.

950.302 Responsibilities of national federations.

950.303 Local federations eligibility.

950.304 Responsibilities of local federations.

Subpart D--Campaign Materials

950.401 Campaign and publicity materials.

950.402 Pledge card.

950.403 Penalties.

Subpart E--Undesignated Funds

950.501 Applicability.

Subpart F--Miscellaneous Provisions

950.601 Release of contributor names.

950.602 Solicitation methods.

950.603 Sanctions.

950.604 Records retention.

Subpart G--DoD Overseas Campaign

950.701 DoD overseas campaign.

Subpart H--CFC Timbetable

950.801 Campaign schedule.

Subpart I--Payroll Withholding

950.901 Payroll allotment.

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.

Administrative Expenses, PCFO Expenses, Campaign Expenses, or CFC

Expenses means all documented expenses identified in the PCFO

application relating to the conduct of a local CFC and approved by the

LFCC in accordance with these regulations.

Campaign Year means the calendar year in which Federal employees

are solicited for contributions to the Combined Federal Campaign.

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.

Designated Funds means those contributions which the contributor

has designated to a specific charitable organization(s), federation(s),

or general option(s).

Director means the Director of the Office of Personnel Management

or his/her designee.

Domestic Area means the several United States, the District of

Columbia, the Commonwealth of Puerto Rico, and the United States Virgin

Islands.

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.

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.

International General Designation Option means that the donor

wishes that his or her gift be distributed to all of the international

organizations listed in the International Section of the campaign

brochure in the same proportion as all of the international

organizations received designations in the local CFC. This option will

have the code IIII.

International Organization means a charitable organization that

provides services either exclusively or in a substantial preponderance

to persons in non-domestic areas.

Local Federal Coordinating Committee or LFCC means the group of

Federal officials designated by the Director to conduct the CFC in a

particular community.

Organization or Charitable Organization means a private, non-

profit, philanthropic, human health and welfare organization.

Overseas Area means the Department of Defense (DoD) Overseas

Campaign which includes all areas other than those included in the

domestic area.

Principal Combined Fund Organization or PCFO means the federated

group or combination of groups, or a charitable organization selected

by the LFCC to administer the local campaign under the direction and

control of the LFCC and the Director.

Solicitation means any action requesting money, either by cash,

check or payroll deduction, on behalf of charitable organizations.

Undesignated Funds means those contributions which the contributor

has not designated to a specific charitable organization(s),

federation(s), or the International General Designation Option.

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 during a 6 week period, as determined by the LFCC, from

September 1 through December 15 at

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every Federal agency in the campaign community in accordance with these

regulations. Except as provided in this section, no other solicitation

on behalf of charitable organizations may be conducted in the Federal

workplace. Upon written request, 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. No such permission will be

granted for such solicitations during the period September 1 through

December 15.

(b) These regulations 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 exercises general supervision over all operations

of the CFC, and takes all necessary steps to ensure the achievement of

campaign objectives. 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.

(d) 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 a local campaign.

(a) The Director establishes and maintains the official list of

local campaigns and the geographical area each covers. There is no

prerequisite regarding the Federal employee population needed to

establish or maintain a CFC. However, rather than establishing or

maintaining small campaigns, OPM encourages mergers and expansions of

campaigns to promote efficiency and economy.

(b) The Director establishes an LFCC to govern the conduct of the

local CFC. The LFCC will, whenever possible, be comprised of members of

local Federal inter-agency organizations, such as Federal Executive

Boards, Federal Executive Associations, Federal Business Associations

or, in the absence of such organizations, self-organized associations

of local Federal officials. These groups will include local Federal

agency heads or their representatives. It may also include

representatives of employee unions and other employee groups. Rotation

of the LFCC Chair position among the LFCC members is encouraged. For

continuity, each LFCC should appoint a Vice Chair who would be expected

to serve at the conclusion of the Chair's term.

(c) The agency head at each Federal installation within a campaign

area shall:

(1) Become familiar with all CFC regulations,

(2) Cooperate with the representatives of the LFCC and PCFO in

organizing and conducting the campaign,

(3) Initiate official campaigns within their offices or

installations and provide support for the campaign, and

(4) Assure the campaign is conducted in accordance with these

regulations.

(d) Once a campaign has been established, agency heads may not

discontinue solicitation of Federal employees within their organization

without the written approval of the Director.

(e) Any change in the geographical boundaries of local campaigns

may be made only upon the express written permission of the Director.

(f) Each year the LFCC must establish the 6 week time period to

solicit employees. Each campaign should not be conducted for more than

a 6 week period. However, in unusual circumstances the LFCC may extend

the campaign as local conditions require. The solicitation may not

begin before September 1 and in no event will it extend beyond December

15 of each year.

(g) Current Federal civilian and active duty military employees may

be solicited for contributions using payroll deduction, checks, money

orders or cash. Contractor personnel, credit union employees and other

persons employed on Federal premises, as well as retired Federal

employees, may make single contributions to the CFC through check or

money order. These non-Federal employees may not be solicited, but are

to be provided the opportunity to participate in the CFC.

(h) A Federal employee whose official duty station is outside the

geographic boundaries of an established CFC may not be solicited in

that CFC. A Federal employee may participate in a particular CFC only

if that employee's official duty station is located within the

geographic boundaries of that CFC.

Sec. 950.104 Local Federal Coordinating Committee responsibilities.

(a) All members of the LFCC should develop an understanding of

campaign regulations and procedures. The LFCC is the central point of

information regarding the CFC among Federal employees.

(b) The responsibilities of the LFCC include, but are not limited

to, the following:

(1) Maintaining minutes of LFCC meetings and responding promptly to

any request for information from the Director.

(2) Naming a campaign chairperson and notifying the Director when

the chairperson changes.

(3) Determining the eligibility of local organizations that apply

to participate in the local campaign. This is the exclusive

responsibility of the LFCC and may not be delegated to the PCFO.

(4) Ensuring that the list of charities determined by the Director

to be nationally eligible to participate in all local campaigns is

reproduced in the local brochure in accordance with OPM instructions.

(5) Ensuring that the local brochure and pledge card are produced

in accordance with these regulations and instructions from the

Director.

(6) Encouraging local Federal agencies to appoint loaned executives

to assist in the campaign. Federal agency heads are encouraged to grant

administrative leave to all loaned executives appointed to assist in

the conduct of the CFC. Federal loaned executives are prohibited from

working on non-CFC fundraising activities during duty hours.

(7) Establishing a network of employee keyworkers and volunteers

and participating in interagency briefing sessions and kick-off

meetings.

(8) Ensuring that, to the extent reasonably possible, every

employee is given the opportunity to participate in the CFC, and

ensuring employee designations are honored.

(9) Ensuring that the PCFO includes in keyworker training

instructions to encourage employees to designate the charitable

organizations they wish to receive their donations and specific

information on how general designation monies are distributed.

(10) Ensuring that contributions are distributed in accordance with

the method described in these regulations.

(11) Ensuring that no employee is coerced in any way to participate

in the campaign.

(12) Bringing allegations of coercion to the attention of the

Director and the

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employee's agency and providing a mechanism to review employee

complaints of undue pressure and coercion in Federal fundraising.

Federal agencies shall provide procedures and assign responsibility for

the investigation of such complaints. Personnel offices shall be

responsible for informing employees of the proper channels for pursuing

such complaints.

(13) Notifying the Director of any significant problems or

controversies concerning the campaign that the LFCC cannot resolve by

applying these regulations. The LFCC must abide by the Director's

decisions on all matters concerning the campaign.

(14) Ensuring the PCFO does not use the services of consulting

firms, advertising firms or similar business organizations to perform

the policy-making or decisionmaking functions in the CFC. A PCFO 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.

(15) Ensuring that the activities and functions required of the

PCFO are kept separate from any non-CFC operations of the organization.

The LFCC must verify that the PCFO keeps and maintains CFC financial

records and interest bearing bank accounts separate from the PCFO's

non-CFC financial records and bank accounts.

(16) Monitoring the work of the PCFO, and inspecting closely the

annual audit required of the PCFO pursuant to Sec. 950.105(d)(9) for

compliance with these regulations.

(17) Authorizing to the PCFO reimbursement of only those campaign

expenses that are legitimate CFC costs and are adequately documented.

Total reimbursable expenses may not exceed the approved campaign budget

by more than 10 percent.

(c) The LFCC must annually solicit applications for the PCFO via

public notice no later than February 1 of each calendar year. The PCFO

application period must be open a minimum of 14 calendar days. Cost

incurred in providing the public notice should be added to the PCFO

budget for the current campaign year as an administrative cost. The

LFCC shall select a PCFO to act as its fiscal agent and campaign

coordinator on the basis of presentations made to the local committee

as described in Sec. 950.105. The LFCC shall consider the efficiency

and effectiveness of the campaign as the primary factors in selecting a

PCFO.

Sec. 950.105 Principal Combined Fund Organization (PCFO)

responsibilities.

(a) Only federations, charitable organizations or combinations

thereof may serve as the PCFO.

(b) the primary goal of the PCFO is to conduct an effective and

efficient campaign in a fair and even-handed manner aimed at collecting

the greatest amount of charitable contributions possible. Therefore,

PCFO's should afford federated groups and agencies with representatives

in the local campaign area adequate opportunity to offer suggestions

relating to the operation of the campaign, printed campaign material,

and training. If requested in writing to either the LFCC or PCFO,

federated groups and agencies must be given the opportunity to attend

all campaign meetings, kick-off events, and training sessions. The PCFO

must provide representatives of federated groups, agencies and the

general public the opportunity to review at the PCFO office all

reports, budgets, audits, training materials, and other records

pertaining to the CFC.

(c) Any federation, charitable organization or combinations thereof

wishing to be selected for the PCFO must submit a timely application in

accordance with the deadline set by the LFCC, that includes:

(1) A written campaign plan sufficient in detail to allow the LFCC

to determine if the applicant could administer an efficient and

effective CFC. The campaign plan must include a CFC budget that details

all estimated costs required to operate the CFC. The budget may not be

based on the percentage of funds raised in the local campaign.

(2) A statement signed by the applicant's local director or

equivalent pledging to:

(i) administer the CFC fairly and equitably,

(ii) conduct campaign operations, such as training, kick-off and

other events, and fiscal operations, such as banking, auditing,

reporting and distribution separate from the applicant's non-CFC

operations, and

(iii) abide by the directions, decisions, and supervision of the

LFCC and/or Director.

(3) A statement signed by the applicant's local director or

equivalent acknowledging the applicant is subject to the provisions of

Sec. 950.403 and Sec. 950.603.

(d) The specific responsibilities of the PCFO include but are not

limited to:

(1) Honoring employee designations.

(2) Helping to ensure no employee is coerced in any way regarding

participation in the campaign and that allegations of coercion are

brought to the attention of the appropriate Federal officials.

(3) Training agency loaned executives, coordinators, and keyworkers

in the methods of non-coercive solicitation. This training must be

completely separate from training given for other types of charitable

campaign drives. Additionally, keyworkers should be trained to check to

ensure the pledge card is legible on each copy, verify arithmetical

calculations, and ensure the block on the pledge card concerning the

release of the employee's name and address is completed fully.

(4) Ensuring that no employee is questioned in any way as to his or

her designation or its amount except by keyworkers, loaned executives,

or other non-supervisory Federal personnel.

(5) Preparing pledge cards and brochures that are consistent with

these regulations and instructions by the Director.

(6) Honoring the request of employees who indicate on the pledge

card that their names not be released to the organization(s) that they

designate.

(7) Maintaining a detailed schedule of its actual CFC

administrative expenses with, to the extent possible, itemized receipts

for the expenses. The expense schedule must be in a format that can be

reconciled to the PCFO's budget submitted in accordance with paragraph

(c)(1) of this section.

(8) Keeping and maintaining CFC financial records and interest-

bearing bank accounts separate from the PCFO's internal organizational

financial records and bank accounts. Interest earned on all CFC

accounts must be distributed in the same manner as undesignated funds

pursuant to Sec. 950.501. All financial records and bank accounts must

be kept in accordance with generally accepted accounting principles.

(9) Submitting to the LFCC an audit of collections and

disbursements for each campaign managed no later than June 15 of the

year in which the last disbursement is made. For example, for the 1994

CFC the audit of the 1994 campaign must be submitted to the LFCC no

later than June 15, 1996. The audit must be performed by an independent

certified public accountant in accordance with generally accepted

auditing standards and OPM guidance.

(10) Absorbing the cost of any reprinting of campaign materials due

to its noncompliance with these regulations, embezzlement, or loss of

funds. A PCFO must also absorb campaign costs exceeding 10 percent of

the approved budget.

(11) Designing and implementing CFC awards programs which are

accessible to all employees and which reflect the

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Government's commitment to non-coercion. Awards to Federal agencies or

employees by individual federations or organizations for CFC

accomplishments is prohibited.

(12) Producing any documents or information requested by the LFCC

and/or the Director within 10 calendar days of the receipt of that

request.

(13) Responding in a timely and appropriate manner to reasonable

inquiries from participating organizations.

(e) A federated group(s) or charitable organization may be barred

from serving as PCFO for 1 year if determined by the Director to have

violated these regulations. A federated group(s) or charitable

organization serving as PCFO will be notified of the Director's intent

to bar and have an opportunity to submit written comments prior to its

becoming effective. The Director's decision as to debarment shall be

communicated in writing to the LFCC and PCFO, and the LFCC shall not

consider an application from such group(s) or organization to serve as

the PCFO during terms of debarment.

Sec. 950.106 PCFO expense recovery.

(a) The PCFO shall recover from the gross receipts of the campaign

its expenses, approved by the LFCC, reflecting the actual costs of

administering the local campaign. The amount recovered for campaign

expenses shall not exceed 10 percent of the estimated budget submitted

pursuant to Sec. 950.105(c)(1) unless approved by the Director.

(b) The PCFO may only recover campaign expenses from receipts

collected for that campaign year. Expenses incurred preparing for and

conducting the CFC cannot be recovered from receipts collected in the

previous year's campaign. The PCFO may absorb the costs associated with

conducting the campaign from its own funds and be reimbursed, or obtain

a commercial loan to pay for costs associated with conducting the

campaign. If the commercial loan option is used, the amount of a

reasonable rate of interest is an allowable campaign expense, subject

to the approval of the LFCC when the PCFO budget is submitted.

(c) The campaign expenses will be shared proportionately by all the

recipient organizations reflecting their percentage share of gross

campaign receipts.

Sec. 950.107 Lack of a qualified PCFO.

There is no authority in statute or regulation for an LFCC or any

Federal official or employee to assume the duties and responsibilities

of the PCFO. In the event that there is no qualified PCFO, the LFCC

Chairman will promptly inform the Director in writing. The Director

will assist the LFCC in merging the campaign with an adjacent campaign

that has a qualified PCFO or identifying an eligible organization to

function as the campaign's PCFO. If the LFCC's of the adjacent

campaigns elect not to merge and a qualified PCFO cannot be found, the

local CFC will be canceled. No workplace solicitation of any Federal

employee in the campaign area is authorized and payroll allotments

cannot be accepted and honored during the duration of the cancellation

of the CFC.

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 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. 950.601.

(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 LFCC, on the eligibility

committee, or as a Federal agency fundraising program coordinator, must

not 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.

Under no circumstances may an LFCC member affiliated with an

organization applying for inclusion on the local list, participate in

the eligibility determinations.

Sec. 950.110 Prohibited discrimination.

Discrimination for or against any individual or group on account of

race, color, religion, sex, national origin, age, handicap, or

political affiliation 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, color,

religion, sex, national origin, age, or handicap.

Subpart B--Eligibility Provisions

Sec. 950.201 National list eligibility.

(a) The Director shall annually:

(1) Determine the timetable and other procedures regarding

application for inclusion on the national list,

(2) Determine which organizations among those that apply qualify to

be part of the national list and then provide the national list of

qualified organizations to all local campaigns.

(b) The national list shall be reproduced in all local brochures in

accordance with these regulations. The list will include each

organization's national list number code. These number codes must be

faithfully reproduced in the local brochures.

(c) An organization on the national list may elect to be removed

from the national list and have its local affiliate or subunit listed

on the local list of organizations in its stead. For the local

affiliate or subunit to be listed in lieu of the organization on the

national list, the following procedures must be followed:

(1) The organization must send a letter to the local affiliate or

subunit in that particular CFC waiving its listing on the national list

so that its eligible local affiliate or subunit on the local list of

organizations will appear as that organization's sole listing in the

CFC brochure.

(2) The local affiliate or subunit will include in its application

to the LFCC a copy of the letter authorizing the removal of the

organization from the national list as well as all the required

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materials for completing a local organization application.

(3) Upon finding the local organization eligible, the waiver letter

from the organization on the national list authorizes the LFCC to

delete that organization from the national list.

Sec. 950.202 National list eligibility requirements.

All organizations seeking national list eligibility must:

(a) Certify that it provides or conducts real services, benefits,

assistance, or program activities, in 15 or more different states or a

foreign country over the 3 year period immediately preceding the start

of the year involved. This requirement cannot be met on the sole basis

of services provided through an ``800'' telephone number or by sending

materials via the U.S. Postal Service or a combination thereof. A

schedule listing those states (minimum 15) or the foreign countries

(minimum 1) where the program activities have been provided and a

detailed description of the activities in each state or foreign country

must be included with the application. 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.

(b) Certify that it is recognized by the Internal Revenue Service

as tax-exempt under 26 U.S.C. 501(c)(3) and to which contributions are

tax-deductible pursuant to 26 U.S.C. 170. A copy of the letter from the

Internal Revenue Service granting tax-exempt status under the Internal

Revenue Code, 26 U.S.C. 501(c)(3), must be included with the

application.

(c) Certify that the organization has no expenses connected with

lobbying and attempts to influence voting or legislation at the local,

State, or Federal level or alternatively, that those expenses would

classify the organization as a tax-exempt organization under 26 U.S.C.

501(h).

Sec. 950.203 Public accountability standards.

(a) To insure organizations wishing to solicit donations from

Federal employees in the workplace are portraying accurately their

programs and benefits, several standards and certifications must be met

annually by each organization seeking national list eligibility. Each

organization 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

human health and welfare benefits provided by the organization within

the previous year.

(2) Certify that it accounts for its funds in accordance with

generally accepted accounting principles and that an audit of the

organization's fiscal operations is completed annually by an

independent certified public accountant in accordance with generally

accepted auditing standards. Such audit must show expenses by function.

A copy of the organization's most recent annual audit must be included

with the application. The audit must cover the fiscal year ending not

more than 18 months prior to the January of the campaign year to which

the organization is applying. For example, the audit included in the

1994 application must cover the fiscal period ending on or after June

30, 1992.

(3) Provide a completed copy of the organization's IRS Form 990,

including signature, with the application regardless of whether or not

the IRS requires the organization to file this form. IRS Forms 990EZ,

990PF, and comparable forms are not acceptable substitutes. However,

smaller organizations that file the Form 990EZ may submit the 990EZ

with pages 1 and 2 of the Form 990 attached. The IRS Form 990 and audit

must cover the same fiscal period and, if revenue and expenses on the

two documents differ, these amounts must be reconciled in an

accompanying signed statement by the certified public accountant who

completed the audit.

(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,

submitted pursuant to Sec. 950.203(a)(3), by adding the amount spent on

``management and general'' (line 14) to ``fundraising'' (line 15) and

then dividing the sum by ``total revenue'' (line 12).

(i) If an organization's administrative and fundraising expenses

exceed 25 percent of its total support and revenue, it must certify

that its actual expenses for administration and fundraising are

reasonable under all the circumstances presented. It must provide an

explanation with its application and also include a formal plan to

reduce these expenses below 25 percent.

(ii) The Director may reject any application from an organization

with fundraising and administrative expenses in excess of 25 percent of

total support and revenue, unless the organization demonstrates to the

satisfaction of the Director that its actual expenses for those

purposes and its plan to reduce them are reasonable under the

circumstances.

(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) Certify under which governmental entity the charitable

organization is chartered, incorporated or organized (congressionally

chartered or the state in which it is registered).

(10) Certify that the organization has received at least 20 percent

of its total support and revenues from public sources as computed by

adding lines 1a and 1b and dividing by line 12 from the IRS Form 990

submitted pursuant to Sec. 950.203(a)(3).

(11) Certify that the organization prepares and makes available to

the public upon request an annual report that includes a full

description of the organization's activities and supporting services

and identifies its directors and chief administrative personnel. A copy

of the organization's annual report must be included with the

application. The annual report must cover the fiscal year ending not

more than 18 months prior to January of the campaign year to which the

organization is applying. A more frequently published document, such as

a quarterly newsletter, may be used to meet this requirement provided

that such document is available to the general public upon request and

describes the organization's activities and supporting services and

identifies its directors and chief administrative personnel.

(12) Provide a statement that the certifying official is authorized

by the organization to certify and affirm all statements required for

inclusion on the national list.

(13) Provide a statement in 25 words or less describing the program

activities of the charitable organization. The 25-word statement need

not include the organization's name. In addition, organizations must

provide a telephone number, dedicated solely for the

[[Page 57895]]

organization's use, through which the donors may receive further

information about the organization. Except as provided in

Sec. 950.401(k), this information will be included in the campaign

brochure along with the organization's administrative and fundraising

percentage computed pursuant to Sec. 950.203(a)(3).

(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 national 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

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.

Applications received that are incomplete may not be perfected during

the appeal process described in Sec. 950.205.

(e) The Director may waive any of these standards and

certifications upon a showing of extenuating circumstances.

Sec. 950.204 Local list eligibility.

(a) The LFCC shall establish an annual application process

consistent with these regulations for organizations that wish to be

listed in the local brochure.

(b) The requirements for an organization to be listed in the local

brochure shall include the following:

(1) An organization must demonstrate to the satisfaction of the

LFCC, that it has a substantial local presence in the geographical area

covered by the local campaign, a substantial local presence in the

geographical area covered by an adjacent local campaign, or substantial

statewide presence.

(i) Substantial local presence is defined as a staffed facility,

office or portion of a residence dedicated exclusively to that

organization, available to members of the public seeking its services

or benefits. The facility must be open at least 15 hours a week and

have a telephone dedicated exclusively to the organization. The office

may be staffed by volunteers. Substantial local presence cannot be met

on the basis of services provided solely through an ``800'' telephone

number or the U.S. Postal Service or a combination thereof.

(ii) Substantial statewide presence is defined as providing or

conducting real services, benefits, assistance or program activities

covering 30 percent of a state's geographic boundaries or providing or

conducting real services, benefits, assistance or program activities

affecting 30 percent of a state's population. Substantial statewide

presence cannot be met on the basis of services provided solely through

an ``800'' telephone number or the U.S. Postal Service or a combination

thereof.

(2) An organization seeking local eligibility also must meet all

requirements for national list eligibility in Sec. 950.202 and

Sec. 950.203, with the following exceptions:

(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.

(ii) Local charitable organizations with annual revenue less than

$100,000 are not required to be audited in accordance with generally

accepted auditing standards and, hence, are not required to submit an

audit report. Annual revenue is determined by line 12 of the IRS Form

990 covering the organization's most recent fiscal year ending not more

than 18 months prior to the January of the campaign year to which the

organization is applying.

(iii) Organizations seeking local eligibility in Puerto Rico or the

U.S. Virgin Islands are exempt from the requirements of

Sec. 950.202(b). However, said organizations must include in their

applications, the appropriate local forms demonstrating their status as

charitable organizations.

(c) Family support and youth activities certified by the commander

of a military installation as meeting the eligibility criteria

contained in Sec. 950.204(d) 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.

(d) A family support and youth activity must:

(1) Be a nonprofit, tax-exempt organization that provides family

service programs or youth activity programs to personnel in the

Command. The activity must not receive a majority of its financial

support from appropriated funds.

(2) 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.

(3) Be directed by the base Non-Appropriated Fund Council or an

active voluntary board of directors which serves without compensation

and holds regular meetings.

(4) 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.

(5) Have a policy and practice of nondiscrimination on the basis of

race, color, religion, sex or national origin applicable to persons

served by the organization.

(6) 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.

(e) Local eligibility determinations. Within 15 business days after

the closing date of the application period, the LFCC shall communicate

its eligibility decisions via facsimile or U.S. Postal Service. Denial

of the application by the LFCC must be sent via U.S. Postal Service

certified or registered mail with a return receipt. Approvals may be

sent via U.S. Postal Service regular first class mail or facsimile.

LFCC's may authorize PCFO's to release eligibility determinations to

applicant organizations via telephone. This has no effect on the

deadline for LFCC's to receive local appeals. Applicants denied

eligibility may appeal in accordance with Sec. 950.205.

(f) No LFCC may print the campaign brochure while there are appeals

of eligibility decisions from their campaign pending with the Director.

LFCC's are obligated to check with OPM 21 calendar days after the

mailing of the local appeal decision as to whether the Director is on

notice of a pending timely appeal.

Sec. 950.205 Appeals.

(a) Organizations who apply and are denied eligibility for

inclusion on the national list will be notified of the Director's

decision by registered or certified mail of the U.S. Postal Service.

Organizations may appeal the Director's decision by submitting a

written request to reconsider the denial to the Director. This request

must be received within 10 business days from the date of receipt of

the Director's decision to deny eligibility and shall be limited to

those facts justifying the reversal of the original decision. Requests

for reconsideration may not be used to

[[Page 57896]]

supplement applications that had missing or outdated documents, and any

such documents submitted with the request for reconsideration will not

be considered.

(b) Applicants denied listing in the local brochure must first

appeal in writing to the LFCC to reconsider its original decision. Such

an appeal must be received by the LFCC within 7 business days from the

date of receipt of the initial LFCC decision or 14 calendar days from

the date the decision was mailed, whichever is earlier. The LFCC must

consider all timely appeals and notify the appealing organization

within a reasonable time period. Denial of the appeal by the LFCC must

be sent via U.S. Postal Service certified or registered mail with a

return receipt. Approval of local appeals may be sent via U.S. Postal

Service regular first class mail or facsimile.

(c) A local applicant which is unsuccessful in its appeal to the

LFCC may appeal to the Director. All appeals must:

(1) Be in writing;

(2) Be received by the Director within 10 business days of the date

of receipt of the letter from the LFCC denying eligibility on appeal;

(3) Include a statement explaining the reason(s) why eligibility

should be granted;

(4) Include a copy of the letter from the LFCC disapproving the

original application, a copy of the organization's appeal to the LFCC,

and a copy of the letter from the LFCC denying the appeal.

(d) If an organization fails to file a timely application or a

timely appeal of an adverse eligibility determination in accordance

with these regulations, such application or appeal to the Director will

be dismissed as untimely.

(e) Appeals to the Director may not be used to supplement original

applications that had missing or outdated documents. Any such

supplemental documents will not be considered. Such appeals shall be

limited to those facts justifying the reversal of the original

decision.

(f) The Director's decision is final for administrative purposes.

Subpart C--Federations

Sec. 950.301 National federations eligibility.

(a) The Director may recognize national federations that conform to

the requirements and are eligible to receive designations. The Director

may from time to time place a moratorium on the recognition of national

federations.

(b) By applying for inclusion in the CFC, federations consent to

allow the Director complete access to it 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

national federation to participate in the CFC if the applicant has, as

members of its proposed federation, 15 or more charitable organizations

that meet the eligibility criteria of Sec. 950.202 and Sec. 950.203.

The initial year an organization applies for federation status, it must

submit the applications of all its proposed member organizations in

addition to the federation application. Federations must re-establish

eligibility each year, however, the applications of its member

organizations need not accompany the annual federation application once

an organization has obtained federation status, unless requested by the

Director.

(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 national 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 decertification

subject to a hearing on the record.

(e) An applicant for national 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 list. Applicants must

provide a complete list of those member organizations it certified.

(2) That its financial records, practices and procedures conform to

generally accepted accounting principles and that it is annually

audited by an independent certified public accountant in accordance

with generally accepted auditing standards. A copy of the audit must be

included with the application. The audit must verify that the

federation is honoring designations made to each member organization.

The audit requirement is waived for newly created federations operating

for less than a year.

(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-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. 950.205.

(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

Sec. 950.301(c).

Sec. 950.302 Responsibilities of national federations.

(a) National 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 the national

federations. If the Director requests information supporting a

certification of national 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) The Director may elect to decertify for up to one campaign year

a federation which makes a false certification, subject to the

requirement that any federation that the Director proposes to decertify

shall be offered the opportunity to have a hearing on the record on the

proposed decertification, followed by a written decision stating the

grounds for the decertification. False certifications are presumed to

be deliberate. This presumption may be overcome by evidence presented

at the hearing.

(d) The failure of a national federation to respond in a timely

fashion to a request by the Director for required information or

cooperation in an investigation or a settlement of disbursements may be

grounds for decertification, provided that a decision to decertify is

preceded by a hearing on the record and communicated in writing.

(e) 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.

[[Page 57897]]

Sec. 950.303 Local federations eligibility.

(a) LFCC's must approve local federations that conform to the

requirements.

(b) By applying for inclusion in the CFC, federations consent to

allow the LFCC and Director complete access to it and its members' CFC

books and records and to respond to requests for information by the

LFCC and the Director.

(c) An organization may apply to the LFCC for inclusion as a local

federation if the applicant has as members of its proposed federation,

15 or more charitable organizations that meet the eligibility criteria

of Sec. 950.202, Sec. 950.203, and Sec. 950.204. The initial year an

organization applies for federation status, it must submit to the LFCC

applications of all its proposed member organizations in addition to

the federation application. Federations must re-establish eligibility

each year, however, the applications of its member organizations need

not accompany the annual federation application once an organization

has obtained federation status.

(d) After an organization has been granted federation status, it

may certify that its member organizations meet all eligibility criteria

of Secs. 950.202, 950.203, and 950.204 to be included on the Local

List. While deference should be given to federation certifications, the

LFCC, during the review process, may request independent evidence of

individual member organization's eligibility. 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 decertification subject to a hearing on the

record.

(e) An applicant for local federation status must certify and/or

demonstrate:

(1) That all member organizations seeking participation in the CFC

are qualified for inclusion on the Local List and provide a complete

list of those member organizations it certified.

(2) That its financial records, practices and procedures conform to

generally accepted accounting principles and is annually audited by an

independent certified public accountant in accordance with generally

accepted auditing standards. A copy of the annual audit must be

included with the application. The audit must verify that the

federation is honoring designations made to each member organization.

The audit requirement is waived for newly created federations operating

for less than a year.

(3) That is does not employ, in its CFC operations, the services of

private consultants, consulting firms, advertising agencies or similar

business organizations to perform the policy-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 LFCC 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. 950.205.

(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.

Sec. 950.304 Responsibilities of local federations.

(a) Local 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) If the LFCC requests information supporting a certification of

local 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 local

eligibility.

(c) The Director, upon recommendation by the LFCC, may elect to

decertify a federation which makes a false certification for up to one

campaign year, subject to the requirement that any federation that the

Director proposes to decertify shall be offered the opportunity to have

a hearing on the record on the proposed decertification, followed by a

written decision stating the grounds for the decertification. False

certifications are presumed to be deliberate. The presumption may be

overcome by evidence presented at the hearing.

(d) The failure of a local federation to respond in a timely

fashion to a request by the Director or the LFCC for required

information or cooperation in an investigation may be grounds for

decertification, provided that a decision to decertify is preceded by a

hearing on the record and communicated in writing.

(e) 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.

Subpart D--Campaign Materials

Sec. 950.401 Campaign and publicity materials.

(a) The specific campaign and publicity materials, such as the

official brochure, will be developed locally, except as specified in

these regulations. All materials must be reviewed by the LFCC for

compliance with these regulations and will be printed and supplied by

the PCFO. All publicity materials must have the approval of the LFCC

before being used. Federations must notify the PCFO in writing of their

desire to participate in the development of campaign and publicity

materials. The PCFO must respond in a timely manner to a federation's

request to participate in the development of campaign and publicity

materials. Federations must also respond in a timely fashion in the

development of campaign and publicity materials.

(b) During the CFC solicitation period, participating CFC

organizations may distribute bona fide educational materials describing

its services or programs. The organization must be granted permission

by the Federal agency installation head, or designee to distribute the

material. CFC Coordinators, Keyworkers or members of the LFCC, are not

authorized to grant permission for the distribution of such materials.

If one organization is granted permission to distribute educational

materials, then the Federal agency installation head must allow any

other requesting CFC organization to distribute educational materials.

(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 pamphlets 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 pamphlet for local use, and

further provided that no such distribution shall utilize Federal

personnel on official duty or interfere with Federal government

activities. LFCC 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 period. Nothing in this section shall be

construed to require an LFCC to distribute or arrange for the

[[Page 57898]]

distribution of any material other than the Campaign brochure and the

pledge card.

(e) The Campaign brochure and pledge card is the official CFC

information package and shall be made available to all potential

contributors. All CFC brochures must inform employees of their right to

make a choice to contribute or not to contribute; to designate or not

to designate; and to give a confidential gift in a sealed envelope.

(f) Campaign materials must constitute a simple and attractive

package that has fundraising appeal and essential working information.

The package should focus on the CFC without undue use of charitable

organization symbols and logos or other distractions that compete for

the donor's attention. Extraneous instructions concerning the routing

of forms, tallying of contributor's receipt, and similar reports, which

are primarily for keyworkers must be avoided.

(g) The following applies specifically to the campaign brochure:

(1) OPM will include in the annual distribution of the National

List explicit instructions for the printing of the brochure and

language to be printed verbatim in the introductory pages. The general

information provided will include:

(i) a description of the CFC arrangement and explanation of the

payroll deduction privilege.

(ii) a statement that the donor may only designate charitable

organizations or federations that are listed in the brochure and that

write-ins are prohibited.

(iii) instructions as to how an employee may obtain more specific

information about the programs and the finances of the organizations

participating in the campaign.

(iv) a description of employees' rights to pursue complaints of

undue pressure or coercion in Federal fundraising activities.

(2) Following the introductory pages, the organization list will

consist of three parts--the national, the international, and the local.

The order of these three parts will be annually rotated in accordance

with OPM instructions. In 1996 the Local part will be first followed by

the National and finally the International. The national and

international lists will consist of faithful reproductions of the lists

of national and international organizations, including federations,

provided by OPM. The third part, the local list, is determined by the

LFCC. The order of listing of the federated and unaffiliated

organizations within the three separate parts will be determined by

random drawing. The order of organizations within each federation will

be determined by the federation. The order within the national and

local unaffiliated 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

25 words, of their services and programs, plus a telephone number for

the Federal donor to request further information about the group's

services, benefits, and administrative expenses. Each listing will

include a statement of the percentage of the organization's total

receipts and revenues that are used for administration and fundraising.

Neither the percentage of administrative and fundraising expenses, nor

the telephone number count toward the 25-word statement.

(3) Each national federation and charitable organization will be

assigned a code number by OPM. Local federations and local charitable

organizations will be assigned code numbers by the LFCC. At the

beginning of each federated group's listing will be the federation's

name, code number, 25-word statement, percentage of administrative and

fundraising expenses, and telephone number. The sections of the

brochure where the unaffiliated agencies are listed will begin with the

titles National Unaffiliated Organizations, International Unaffiliated

Organizations and Local Unaffiliated Organizations respectively.

(h) Omission of an eligible charitable organization from the

brochure may require that all brochures be reprinted and redistributed.

Such omissions must be reported to OPM immediately upon discovery. The

Director or LFCC may direct that the cost of such reprinting and

redistribution be borne by the PCFO or charged to CFC administrative

expenses.

(i) Dual listing. Listing of a national organization, as well as

its local affiliate organization, is permitted. However, a national

organization may waive its listing in the national section of the

brochure in favor of its eligible local affiliate. The local affiliate

must include in its application the written waiver from its national

organization.

(j) Multiple listing. Each national or local organization must

individually meet all of the eligibility criteria and submit

independent documentation as required in Sec. 950.202, Sec. 950.203 or

Sec. 950.204. Once an organization is deemed eligible, it is entitled

to only one listing in the CFC brochure, regardless of the number of

federations to which that organization belongs.

(k) The LFCC may omit the 25-word program description from the CFC

brochure if, in the immediately preceding campaign year, contributions

received in the local CFC totalled less than $100,000.

Sec. 950.402 Pledge card.

(a) The Director will make available each campaign year at least

one model pledge card which shall be reproduced at the local level.

(b) Campaigns may incorporate additional giving levels to the

Director's authorized pledge card. Campaigns may also include their

award recognition program. No further modifications to the pledge card

are permitted unless approved in advance by the Director.

(c) An employee may not make a designation to an organization not

listed in the brochure. In addition, an employee may not make a CFC

contribution to an organization listed in the brochure of a campaign

covering a geographic location different from the campaign where the

employee works. Designations made to organizations not listed in the

brochure are not invalid, but will be treated as undesignated funds and

distributed accordingly.

(d) In the event the PCFO receives a pledge card that has

designations that add up to less than the total amount pledged, the

PCFO must honor the total amount pledged and treat the excess amount as

undesignated funds. In the event that a PCFO receives a pledge card

that has a total amount pledged that is less than the sum of the

individual designations, the PCFO must honor the designations by

assigning a proportionate share of the total gift to each organization

designated. For example, if an employee indicates a total gift of $100

in the upper portion of the pledge card, but designates $25 each to

five organizations in the lower part of the pledge card, the PCFO must

adjust each organization's designation to $20.

Sec. 950.403 Penalties.

A PCFO's failure to comply with these regulations may result in

either disqualification from future service as PCFO, disqualification

as a participating federation, or both penalties. These penalties may

only be imposed after a hearing on the record and communication of the

Director's decision in writing.

Subpart E--Undesignated Funds

Sec. 950.501 Applicability.

(a) All undesignated funds shall be distributed to all of the

organizations in the CFC brochure in the same proportion that they

received designations in the campaign.

[[Page 57899]]

(b) The distribution of undesignated funds described in

Sec. 950.502 applies to all domestic area campaigns. It does not apply

to the DOD Overseas Campaign.

(c) The Director may alter the distribution of undesignated funds

as local campaign circumstances may require or to enforce the

distribution method described herein.

Subpart F--Miscellaneous Provisions

Sec. 950.601 Release of contributor names.

(a) The pledge card, designed pursuant to Sec. 950.402, must allow

an employee to indicate if the employee does not wish his or her name

and home address forwarded to the charitable organization or

organizations designated. A PCFO's failure to honor an employee's wish

may result in the decertification of the PCFO.

(b) The pledge card will direct an employee to provide his or her

complete home address on the pledge card should he or she wish his or

her name and home address released to organizations receiving their

donations.

(c) It is the responsibility of the PCFO to forward the names and

addresses of employees who have indicated that they wish their names be

forwarded, to the recipient organization directly, if the organization

is unaffiliated, and to the organization's federation if the

organization is a member of a federation. The PCFO may not make any

other use of these employees' names and addresses.

(d) Organizations must cooperate fully with OPM investigations into

the care and appropriate use of these lists. Should an organization

ignore or fail to respond to OPM's requests for cooperation or hamper

an investigation, the Director may propose that the organization be

suspended or expelled from the CFC. The Director will consider any

response in issuing a decision.

Sec. 950.602 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 fundraising events, such as, raffles, lotteries,

auctions, bake sales, carnivals, athletic events, or other activities

not specifically provided for in these regulations are permitted during

the 6-week campaign period if approved by the appropriate agency head

or government official, consistent with agency ethics regulations.

(c) In all approved special fundraising events the donor must have

the option of designating to a specific participating organization or

federation or be advised that the donation will be counted as an

undesignated contribution and distributed according to these

regulations.

Sec. 950.603 Sanctions.

(a) Sanctions not specifically provided for elsewhere in these

regulations, may be imposed on an organization, federation or PCFO for

violating any provisions, other applicable provisions of law, or any

directive or instruction from the Director. The Director will determine

the appropriate sanction, up to and including permanent expulsion from

the CFC. In determining the appropriate sanction, the Director will

consider all elements such as previous violations, harm to Federal

employee confidence in the CFC, and any other relevant factors. The

Director shall provide written notification to the organization,

federation or PCFO regarding the alleged violation and the intent to

impose a sanction. Prior to implementation of sanctions under this

section, the organization, federation or PCFO shall be provided an

opportunity to address in writing why the sanction should not be

imposed. This submission must be received within 10 calendar days from

the date of receipt of the Director's notification letter.

(b) At the Director's discretion, PCFO's and Federations may be

directed to suspend distribution of current and future CFC donations

from Federal employees to recipient organizations. Federations and

PCFO's shall immediately place suspended contributions in an interest

bearing account until directed to do otherwise.

Sec. 950.604 Records retention.

Federations, PCFO's and other participants in the CFC shall retain

documents pertinent to the campaign for at least three campaign years.

Documents requested by OPM must be made available within 10 business

days of the request.

Subpart G--DoD Overseas Campaign

Sec. 950.701 DoD overseas campaign.

(a) A Combined Federal Campaign is authorized for all Department of

Defense (DoD) activities in the overseas areas during a 6-week period

in the fall. Organizations that may participate in the Overseas

Campaign will consist of organizations determined nationally eligible

by OPM.

(b) The DoD must select an organization or combination of

organizations to serve as PCFO as it deems in the best interests of the

overseas campaign.

(c) Federal civilian agencies with overseas personnel may elect to

have these employees participate in the DoD campaign or in the National

Capital Area campaign.

(d) The overseas campaign brochure shall not include the All

International Organizations Designation Option-IIII.

(e) Family support and youth activities established in overseas

locations may be supported from CFC funds.

(f) Undesignated funds contributed in the Overseas Campaign equal

to up to 6 percent of the gross campaign contributions will be

allocated to the Overseas family support and youth activities. No other

funds may be used for this purpose. If the undesignated funds exceed 6

percent of the gross campaign contributions, this excess shall be

distributed to all other organizations in the same proportions as

designations.

(g) Overseas family support and youth activities shall not be

charged any share of campaign costs. All other organizations

participating in the Overseas Area CFC will be charged for campaign

costs in the same proportion that they received gross campaign

receipts, net of that amount of receipts set aside for family support

and youth activities.

(h) The overseas campaign brochure must explain the allocation

policy utilized by each of the military services to allocate funds

received from the Overseas campaign to their overseas family support

and youth activities.

Subpart H--CFC Timetable

Sec. 950.801 Campaign schedule.

(a) The Combined Federal Campaign will be conducted according to

the following timetable.

(1) During one 30-calendar day period between January and March, as

determined by the Director, OPM will accept applications from

organizations seeking to be listed on the national list.

(2) Within 35 calendar days of the closing of the receipt of

applications, the Director will issue notices to each national

applicant organization of the results of the Director's review.

(3) Local Federal Coordinating Committees must select a PCFO no

later than March 15.

(4) The Director will issue a national eligibility list to all

local campaigns by June 30.

(5) Local Federal Coordinating Committees must accept applications

[[Page 57900]]

from organizations seeking local eligibility for 30 calendar days as

determined by the LFCC, and must issue notice of its eligibility

decisions within 15 business days of the closing date for receipt of

applications.

(b) The Director will annually issue a timetable for accepting and

processing national applications.

Subpart I--Payroll Withholding

Sec. 950.901 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 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 Card, in conformance with Sec. 950.402, is the

only form for authorization of the CFC payroll allotment and may be

printed or purchased from a central source by each PCFO. The pledge

cards and official brochure will be distributed to employees when

charitable contributions are solicited.

(2) The original copy of each pledge card (payroll allotment

authorization) should be transmitted to the contributor's servicing

payroll office as promptly as possible, preferably by December 15.

However, if pledge cards are received after that date they should be

accepted and processed by the payroll office.

(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 beginning in January and ending with

the last pay period that begins in December. 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 be determined by the

LFCC but will not be less than $1 per payday, 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.

(f) Remittance. One check will be sent by the payroll office each

pay period, in the gross amount of deductions on the basis of current

authorizations, to the Central Receipt and Accounting Point (CRP) at

each local CFC location for which the payroll office has received

allotment authorizations. The Director will provide a list of the

authorized CRP's to Federal payroll offices.

(1) The check will be accompanied by a statement identifying the

agency, the dates of the pay period, and the total number of employee

deductions.

(2) There will be no listing of allotters included or of allotter

discontinuances.

(g) 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.

(h) Transfer. When an allotter moves to another organizational unit

served by a different payroll office in the same CFC location, whether

in the same office or a different Department or agency, his or her

allotment authorization should be transferred to the new payroll

office.

(i) Accounting. Federal payroll offices will oversee the

establishment of individual allotment accounts, the deductions each pay

period, and the reconciliation of employee accounts in accordance with

agency and General Accounting Office requirements. The payroll office

will accept responsibility for the accuracy of remittances, as

supported by current allotment authorizations, and internal accounting

and auditing requirements.

(1) The PCFO shall notify the federated groups, national agencies,

and local agencies as soon as practicable after the completion of the

campaign, but in no case later than February 15, of the amounts, if

any, designated to them and their member agencies and of the amounts of

the undesignated funds, if any, allocated to them.

(2) The PCFO is responsible for the accuracy of disbursements it

transmits to recipients. It shall transmit at least monthly for

campaigns of $500,000 or more or quarterly if less than that amount,

minus only the approved proportionate share for administrative cost

reimbursement and the PCFO fee set forth in Sec. 950.106(d). It shall

remit the contributions to each organization or to the federated group,

if any, of which the organization is a member. For campaigns with gross

receipts in excess of $500,000, the PCFO will distribute all CFC

receipts beginning April 1, and monthly thereafter. For campaigns with

gross receipts of $500,000 or less, the PCFO will distribute all CFC

receipts beginning June 1, and quarterly thereafter. At the close of

each disbursement period, the PCFO's CFC account shall have a balance

of zero.

(3) The PCFO may make one-time disbursements to organizations

receiving minimal donations from Federal employees. The LFCC must

determine and authorize the amount of these one-time disbursements. The

PCFO may deduct the proportionate amount of each organization's share

of the campaign's administrative costs and the average of the previous

3 years pledge loss from the one-time disbursement. This is the only

approved application of adjusting for pledge loss.

(4) Federated and national charitable organizations, or their

designated agents, will accept responsibility for:

(i) The accuracy of distribution amount the charitable

organizations of remittances from the PCFO; and

(ii) Arrangements for an independent audit conducted by a certified

public accountant agreed upon by the participating charitable

organizations.

[FR Doc. 95-28715 Filed 11-22-95; 8:45 am]

BILLING CODE 6325-01-M