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2013 Combined Federal Campaign (CFC) Orientation & Eligibility Requirements. Report Tile. UNITED STATES OFFICE OF PERSONNEL MANAGEMENT. Presenters. Barbara Barfield, CFC Director, Rocky Mountain Region (719) 531-5501, BarbaraBarfield@FESforCFC.org

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report tile

2013 Combined Federal Campaign (CFC)

Orientation & Eligibility Requirements

Report Tile

UNITED STATES OFFICE OF PERSONNEL MANAGEMENT

slide3

Presenters

  • Barbara Barfield, CFC Director, Rocky Mountain Region

(719) 531-5501, BarbaraBarfield@FESforCFC.org

  • Cari Allen, CFC Coordinator, Rocky Mountain Region

(720) 352-5076, CariAllen@FesforCFC.org

  • Anita Obando, Larimer County Manager, Rocky Mountain Region

(720) 999-1015, AnitaObando@FESforCFC.org

Website: www.rockymountaincfc.org

slide4

Orientation

  • Combined Federal Campaign
  • Federal Government’s employee charitable giving program
  • Federal employees raise millions of dollars through CFC
  • One campaign, one time of year, one ask
  • Designation campaign – donors selects the charity(s) they wish to give to; The campaign DOES NOT collect contributions to be distributed to all participating charities
  • Contributions through payroll deductions, cash or check
slide5

Orientation

  • The solicitation occurs in the Fall; Designations are distributed quarterly starting the following April.
  • Charities must apply annually
  • Charities must meet eligibility requirements
  • Upon meeting the eligibility requirements, charity is verified by the IRS to be in their data base
  • Final authorization to list a charity and code assignment by the Office of Personnel Management (OPM)
  • The Combined Federal Campaign is the only authorized solicitation of employees in the Federal workplace on behalf of charitable organizations.
slide6

Rocky Mountain RegionCFC Organizational Chart

Office of Personnel Management

(Regulators & Oversight)

Local Federal Coordinating Committee

(Campaign Oversight)

(Federal Agency Heads or their Representatives)

Principal Combined Fund Organization (administration)

Charitable Agencies

Local Federal Agencies

Orientation

slide7

CFC Structure

  • All aspects of the CFC, including eligibility for participation, are strictly governed by Federal regulation.
  • The US Office of Personnel Management (OPM) has the overall responsibility for regulating the management of the CFC.
  • OPM reviews and provides guidance and technical advice on regulations, and has the authority to conduct compliance audits on any CFC local campaign fiscal records. This applies to participating federations and independent charities.
slide8

Campaign Overview

  • The CFC is divided into federations and independent organizations.
  • Federation - group of charitable human health and welfare organizations established for the purpose of supplying common fundraising, administrative, and management services to its members.
  • Independent Organization - organization that applies to the CFC on its own behalf. Local unaffiliated organizations apply to the Local Federal Coordinating Committee.
  • International, Nationalor Local
slide9

Campaign Overview

  • Federal employees who voluntarily choose to donate through the Combined Federal Campaign may give their money to a federation, to an organization under a federation, or to an independent organization.
  • Private foundations and units of government are not eligible to participate in the CFC. OPM will verify each applicant’s I.R.S. Code § 501(c)(3) tax-exempt status with the IRS.
slide10

Campaign Accountability

  • Charities that want to receive funds generated by the campaign are required to submit to a substantial review of their financial and governance practices prior to acceptance. This eligibility review is in line with community norms, but it has helped set standards for participation in giving initiatives that transcend the community.
slide11

Eligibility Process

  • Application Period – Feb 27 – March 27, 2013
  • Application Submission – 6660 Delmonico Drive, #503D Colorado Springs, CO 80919 (UPS Store.)
  • Courtesy PCFO Application Completeness Review
    • Contact applicant regarding administrative oversights
  • Application Review – LFCC Mar 28 – Apr 18
  • Eligibility Determination Notification - LFCC April 26
  • Local Appeals Deadline - Charities May 3 -10

(within seven (7) business days of the date of receipt of the initial LFCC decision or fourteen (14) )

    • Local Appeals Notification LFCC June 4
  • OPM Appeals June 8
    • Final Eligibility Decision Target July 31
501 c 3 status verification
501(c)(3) Status Verification
  • CFC regulations at 5 CFR §950.202 require an applicant charity to certify 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(c)(2).
  • A 2006 Government Accountability Office review of the CFC found some participating organizations were not recognized as 501(c)(3) organizations by the IRS.
annual cfc registration facts
Annual CFC Registration Facts
  • Coded charities will use the same code every year.
  • All applicants must be submitted to OPM for tax-exempt validation. If the applicant is new, the OPM will assign a 5-digit CFC code also. L3 & L5 Reports of verified charities as of 12/31
  • Charities that do not pass OPM’s automated validation process must submit documentation to OPM for manual verification.
  • Only charities that are (a) determined eligible, (b) coded, and(c) are verified by OPM as tax-exempt; may be listed in thecampaign charity list.
  • OPM will review charity lists annually for compliance.
charity registration improvements
Charity Registration Improvements
  • Soliciting advance chapter/affiliate verificationsfrom national/parent organizations.
  • Use the 2012 Exempt Status report from OPM to identify returning applicants that need to produce tax-exempt documentation and notify them.
    • Provided with application
  • PCFO granted direct access to OPM data system to enter charity verification information.
    • Immediate EIN verification
  • System will have already verified charities in system from pervious application years thru 12/31/2012
  • System will indicate to PCFO if a charity cannot be verified
  • PCFO will be able to cross walk an EIN for accuracy with name it is associated with
verification documentation
Verification Documentation

Charities:

  • Be proactive:
  • Verify your organization is listed in the L5 Report;
  • Check L3 report of address issues.
  • Check the IRS Exempt Organizations Master Listing NOW– to determine if they are currently in good standing.
  • The Master Listing is available at this URL:

www.irs.gov/taxstats/charitablestats/article/0,,id=97186,00.html.

verification documentation1
Verification Documentation
  • Separately organized charities – If not found in the Master file, these organizations need to:
    • Contact the IRS Tax-Exempt Division at:
    • (877) 829-5500.
    • Request an “Affirmation Letter” and submit the letter to the CFC with application.
common automated validation errors
Common Automated-Validation Errors
  • EIN is not correct or has dashes.
  • Legal name is not identical to the legal name on file with IRS, including spelling, punctuation and spacing.
  • The legal name and EIN do not match.
  • 4. The address on the local application does not match the address on file with IRS.
  • 5. Parent Organization has not notified OPM that the applicant is tax-exempt OR OPM has not received proper verification documents from the campaign.
most common errors
Most Common Errors
  • Typographical Errors in Employer Identification Number (EIN) provided
  • Proper Legal Name not provided (insufficient “Doing Business As” (DBA) documentation)
  • Governmental entity without 501(c)(3) recognition
  • Charity moved (or address changed) and IRS was not notified
  • Merger with another organization – EIN changed
  • IRS Form 990 was marked “Final Return”
slide19

Application

  • Application available on our website: www.rockymountancfc.org
    • Federation & member charity application
    • Independent Charity Application
    • Military Family Support Organization Application
verification documentation2
Verification Documentation
  • Bona-Fide Chapters and Affiliates of a National Organizations – If not found not found in the Master file, these organizations need to:
    • Follow the documentation requirements described in the 2012 Model Application.
slide21

Application Guidelines

  • All required documents and attachments must be complete and submitted before the application deadline.
  • CFC will not accept late applications
  • Missing or out of date documents will not be accepted during the appeals process.
  • The agency is to designate the Certifying Official for purposes of the application and use his or her signature consistently throughout the form; no auto pens permitted.
  • The CFC will not accept applications with modifications to any of the certification statements.
slide22

ReviewProcess

Completeness Review

  • PCFO will pre-screen applications for completeness; must include indemnification statement
  • Contact applicant re: administrative oversights;

Sampling of Federation Members

  • All applications received will be reviewed for eligibility
  • Federations MUST submit full applications of all members not approved for participation in 2012 and all new members applications
  • LFCC will request 20% of member applications for audit sampling
slide23

Application Communications

  • Only independent organizations will be contacted directly by the LFCC. If you apply as a member of a federation, DO NOT send the LFCC an independent application. If dual applications are found, the independent application will not be considered.
  • FAXES OR ELECTRONIC SUBMISSIONS OF APPLICATIONS ARE NOT ACCEPTED
2013 application changes
2013 Application Changes

Certifying official signature does not have to be original

Revisions to Pro Forma 990 Requirements

0% AFR must be verified by audit

Appeal documentation

cfc application cover page
CFC Application Cover Page

Include five-digit code, if participated in 2012 CFC or previously

Organization address must be a physical mailing address. No P.O. Boxes

Contact info may include P.O. Boxes

Use of Electronic Funds Transfer (EFT) in Pikes Peak Region

cfc certification statement 1 local adjacent or statewide presence
CFC Certification Statement #1Local, Adjacent, or Statewide Presence

DESCRIBE:

  • WHO received the service, benefit, assistance, or program activity
  • WHAT the service, benefit, assistance, or program activity is
  • WHEN it was delivered
  • WHERE it was delivered
  • Example: ABC charity provided (what)50 tons of non perishable food to the (who)indigent in the (where)Denver County from (when)January 1, 2012 thru December 31, 2012
cfc certification statement 1 local adjacent or statewide presence1
CFC Certification Statement #1Local, Adjacent, or Statewide Presence
  • Hours of Operation
  • Location – County/State
  • 2012 Human Health and Welfare Services
slide28

CFC Certification Statement #1Local, Adjacent, or Statewide Presence

Factors OPM/LFCC will consider

Nature and extent of the service, benefit, assistance, or program activity

  • Frequency, continuity, and duration
  • Impact on, or benefit to, beneficiaries
  • Number of beneficiaries
slide29

CFC Certification Statement #1Local, Adjacent, or Statewide Presence

Applicants should avoid

  • Generalized statements
  • Listing “offered” services
  • Listing location of members, affiliates, or board members
  • Listing the residencies of visitors to a facility
slide30

CFC Certification Statement #1Local, Adjacent, or Statewide Presence

Applicants should avoid

  • Listing services provided by another entity
  • Listing services provided by the service recipient
  • Information disseminated by United States Postal Service or Internet
  • Repetitive text
  • Fundraising activities as a service
slide31
Example of Qualifying Attachment A

Louisiana

New Orleans 1-3, 2012 ABC Charity conducted a national conference on cancer research and treatment in New Orleans. ABC Charity staff made presentations on new research, provided advocacy training to attendees, and facilitated a discussion between policymakers and medical researchers. 120 healthcare industry professionals attended the three-day conference

CFC Certification Statement #1Local, Adjacent, or Statewide Presence

cfc certification statement 1 local and adjacent presence
CFC Certification Statement #1Local and Adjacent Presence

Example of Qualifying AttachmentA

Louisiana – Calendar Year 2012 (scholarships awarded bimonthly)

Charity International awarded scholarships to the following Louisiana high school students pursuing a degree in computer technology to attend the college or university of their choice:

A. Smith, Jefferson Parish ($1,800)

J. Doe, St. Charles Parish ($5,000)

B. Callahan, Orleans Parish ($1,200)

D. Johnson, Jefferson Parish ($800)

C. Jones, Ascension Parish ($900)

32

cfc certification statement 1 local or adjacent presence
CFC Certification Statement #1Local or Adjacent Presence

Examples of Non-Qualifying Attachment A

Boulder, CODecember 2012 Charity Central held a Family Day attended by local physicians.

Denver, CO The Charity Museum, based in Fort Worth, recorded 300 visitors from 60 parishes since 2005.

Golden, CO August 2012 XYZ Institute conducted a fundraiser at the Golden Independence Day celebration that raised $33,000. 250 Golden residents contributed.

33

cfc certification statement 1 statewide presence
CFC Certification Statement #1Statewide Presence

Example of Non-qualifying Statewide Attachment A

Colorado Springs 2012 ABC Charity provides newsletters, mentoring program, recreational activities, and counseling to at-risk youth. We have two youth camps in the Pikes Peak area serving 100 young adults

Canon City 2012 ABC Charity provides newsletters, mentoring program, recreational activities, and counseling to at-risk youth. We have a youth camp in the Canon City area serving 130 young adults

34

cfc certification statement 1 local adjacent or statewide presence2
CFC Certification Statement #1Local, Adjacent, or Statewide Presence

Family support and youth activities (also known as Morale, Welfare and Recreation organizations or “MWRs”) must meet criteria outlined at 5 CFR 950.204(d).

35

slide36

Web-Based Service Requirements

  • Records indicating geographic distribution of users
  • Describe scope of services received
  • Document 2 of the following:
    • -Evidence that users registered for the service
    • -Summary reports documenting customer feedback
    • -Evidence that users paid a fee
cfc certification statement 2 irs determination letter
CFC Certification Statement #2IRS Determination Letter

Include a copy of the most recent IRS determination letter as ATTACHMENT B

Must be 501(c)(3) tax-exempt organization

Units of government are not eligible

OPM will verify applicant’s current 501(c)(3) status with the IRS

If name on IRS letter, IRS Form 990, or audit is different from applicant, official documentation from IRS or state government must be included

cfc certification statement 2 irs determination letter1
CFC Certification Statement #2IRS Determination Letter

Bona-Fide Chapters and Affiliates of a Parent Organization

Include a certification letter date no older than Oct 1, 2012, from CEO or equivalent verifying applicant is in good standing with parent and is covered by parent’s 501(c)(3) determination, IRS Form 990 and audited financial statements

cfc certification statement 2 tax exempt status
CFC Certification Statement #2Tax-Exempt Status

Family support and youth activities (also known as Morale, Welfare and Recreation organizations or “MWRs”) must meet criteria outlined at 5 CFR 950.204(d).

Commanding officer’s letter must specify that organization is a “Non-Appropriated Fund Instrumentality that supports the installation MWR/FSYA program.”  

Day care centers located on Federal property may not participate under these guidelines.

cfc certification 3 affiliation status
CFC Certification #3Affiliation Status
  • Choose one of three options:
    • I certify the organization named in this application is not part of a group exemption;
      • Name and EIN on IRS Determination letter will be unique
    • I certify the organization named in this application is part of a group exemption;
      • Name may or may not be unique
      • Organizations using this certification should have an EIN that is different from the EIN on the national group exemption letter
      • Must have certification letter from national organization dated on

or after Oct 1, 2012.

cfc certification 3 affiliation status cont
CFC Certification #3Affiliation Status (cont.)
  • I certify the organization named in this application is a bona-fide chapter or affiliate which operates under a national organization’s single corporate tax-exemption.
    • Name and EIN will be the same as national
    • Must provide certification letter from national dated on or after Oct 1, 2012
cfc certification statement 4
CFC Certification Statement #4

I certify the organization named in the application is a human health and welfare organization providing services, benefits, or assistance to, or conducting activities affecting human health and welfare.

2012 human health/welfare service must be in Attachment A.

cfc certification statement 5
CFC Certification Statement #5
  • Choose one of three options:

1. Revenues over $250,000:

        • accounts for its funds on the accrual basis in accordance with generally accepted accounting principles (GAAP); and,
        • has an audit annually by an independent certified public accountant in accordance with generally accepted auditing standards (GAAS).
          • Include as Attachment C audit for FYE June 30, 2011 or more recent
          • If using national organization information, provide certification from CEO of affiliated national organization for FYE June 30, 2011 or more recent

OR

cfc certification statement 5 cont
CFC Certification Statement #5 (cont.)

2. Revenues between $100,000 and $250,000:

  • accounts for its funds on an accrual basis in accordance with generally accepted accounting principles (GAAP); and,
  • audited annually by an independent certified public accountant in accordance with generally accepted auditing standards (GAAS).
    • Do not need to provide audit, but must be available if requested by LFCC/OPM

OR

cfc certification statement 5 cont1
CFC Certification Statement #5 (cont.)

3. I certify the organization named in this application reports total revenue of less than $100,000 on its IRS Form 990 (or pro forma IRS Form 990) covering a period ending not more than 18 months prior to January 2013 and has controls in place to ensure funds are properly accounted for and it can provide accurate timely financial information to interested parties. (not required to use GAAP accounting; can use Cash Accounting.)

cfc certification statement 5 cont2
CFC Certification Statement #5 (cont.)
  • The audit must cover the fiscal period ending on or after June 30, 2011 (18 months prior to January 2013)
  • Audit must state organization accounts for its funds in accordance with generally accepted accounting principles (GAAP) and it was audited in accordance with generally accepted auditing standards (GAAS)
    • “except for” statements will cause denial
  • Audit report must be signed, dated and be on the audit firm’s letterhead
cfc certification statement 6
CFC Certification Statement #6

Two options:

Option 1

  • I certify the organization named in this application prepares and submits to the IRS a complete copy of the organization’s IRS Form 990.
    • Include a copy of the complete IRS Form 990 for a period ending no later than 18 months prior to January 2013, including signatures in the box marked “Signature of Officer”as ATTACHMENT D .
cfc certification statement 6 cont
CFC Certification Statement #6 (cont.)

Option 2

  • I certify the organization named in this application is not required to prepare and submit an IRS Form 990 to the IRS.
    • Download IRS From 990 (www.irs.gov)
    • Include a pro forma IRS Form 990 page 1(Part I, Summary and Part II, Signature Block), pages 7 and 8 (Part VII, Compensation sections A and B), page 9 (Part VIII, Statement of Revenues), Page 10 (Part IX, Statement of Functional Expenses), and Page 11 (Part XI, Financial Statements and Reporting).
cfc certification statement 6 990 vs pro forma 990 summary
CFC Certification Statement #6990 vs. Pro Forma 990Summary

IRS Form 990

  • Filed with IRS
  • Match FY of Audit
  • FY ended on or after 6/30/11
  • Officer’s Signature
  • All sections

Pro Forma 990

  • Download 990 from IRS website
  • FY ended on or after 6/30/11
  • Officer’s Signature
  • Parts I, II, VIIA, VIII, IX and XII only
cfc certification statement 6 cont1
CFC Certification Statement #6 (cont.)

Include as ATTACHMENT D a copy of the most recently completed IRS Form 990, including signature in the box marked “signature of Officer. The preparer’s signature alone is not sufficient

  • Must cover same time period as audited financial statements
  • Copies of IRS Forms 990 filed electronically are acceptable if IRS Form 8879-EO or 8453-EO is also provided. (See CFC Memo 2007-11)
  • If organization is not required to file the form 990, it must still provide a pro forma Form 990
  • Any organization’s IRS Form 990 that does not include a complete list of the officers, Board of Directors, trustees and key employees, and their compensation, if any, is incomplete and will result in a denial.  The number of voting members on page 1 must be equal to or less than the number of individuals identified as a director or trustee in Part VII (see CFC Memo 2010-5).
    • If page 1 lists more voting members than are listed in Part VII, the organization must either provide an explanation of the difference or submit an amended IRS Form 990
cfc certification statement 7
CFC Certification Statement #7

I certify the administrative and fundraising rate for the organization named in this application is __ __ .__%

Regulatory Formula

Regulatory Formula:

In Part IX (Statement of Functional Expenses, ADD Line 25, Column C to the amount in Line 25, Column D. Divide the sum by Part VIII (Statement of Revenue, Line 12, Column A (Total Revenue).

The regulatory formula must be used. No other calculations/methods are allowed

cfc certification statement 8 board of directors
CFC Certification Statement #8Board of Directors

I certify an active and responsible governing body, whose members have no material conflict of interest and a majority of which serve without compensation, directs the organization named in this application.

  • Listing of Board terms of office and meeting dates/locations required of Federations only.

*Verified on IRS form 990 – The number of voting members on page 1 must be equal to or less than the number of individuals identified as a director or trustee in Part VII (see Memo 2010-5)

If page 1 lists more voting members than are listed in Part VII, the organization must either provide an explanation of the difference or submit an amended IRS Form 990

cfc certification statement 9 sale lease of contributor information
CFC Certification Statement #9Sale/Lease of Contributor Information

I certify the organization named in this application prohibits the sale or lease of CFC contributor lists.

  • Donor names and addresses may be used to acknowledge the contribution. CFC regulations prohibit the sale or lease of this information.
cfc certification statement 10
CFC Certification Statement #10

I certify the organization named in this application conducts publicity and promotional activities based upon its actual program and operations, these activities are truthful and non-deceptive, include all material facts, and make no exaggerated or misleading claims.

cfc certification statement 11
CFC Certification Statement #11

I certify the organization named in this application effectively uses the funds contributed by Federal personnel for its announced purposes.

cfc certification statement 12 sanctions compliance
CFC Certification Statement #12Sanctions Compliance
  • Sanctions compliance certification is required
  • Wording in CFC application provided by OPM must be used
  • The list of countries, entities, or individuals referenced in the certification can be found at www.treas.gov/ofac.
  • Guidance in CFC Memorandum 2005-13
attachment e 25 word statement
Attachment E 25 Word Statement
  • Include as ATTACHMENT E a 25-word statement for listing in the campaign brochure. (See Instructions Item 13 for additional required information and the taxonomy codes.)

EXAMPLE: 00000 Name of Organization (legal name of organization, if applicable) (202)555-1234 www.opm.gov/cfc EIN#123456789 The description will contain no more than 25 words. It should be worded so the donor understands the program services provided. 4.2% B,V,O

key application documents
Key Application Documents

Att. A

2012 Service Description

Att. C (if appl.)

Audited

Financial Statements

2013 CFC

Application

Certifications

Att. B

IRS Determination Letter

Att. D

IRS Form 990 (same period as audit)

slide62

Certifying Official’s Signature

  • Certifying official does not have to be Executive Director, but must be individual in a position to verify the validity of the application and all attachments.
  • Applicants must check the box next to each statement to demonstrate agreement to comply with the statement
  • Federations may provide photocopies
  • Applicants must check the box next to each statement to demonstrate compliance with each certification statement; Failure to check box is interpreted as refusal to comply with the certification statement and charity will be denied eligibility
2012 common application mistakes
2012 Common Application Mistakes
  • Application not signed.
  • Incorrect certification for local presence, adjacent campaign presence or statewide presence.
  • Agency does not provide adequate documentation of Human Health and Welfare as defined by the regulations. (Attachment A)
  • Missing or incomplete board information included on IRS for 990.
  • IRS Form 990 not signed by an Officer.
  • There were more voting members listed on part 1 line 3 of IRS Form 990 than were listed in Part VII, and the organization did not provide an explanation of the difference or submit an amended IRS form 990.
slide64

Eligibility Appeals

  • All organizations that apply for local eligibility and are found ineligible haveonly one opportunity to appeal to the LFCC.
  • If found ineligible on appeal by the LFCC, the organization will have only one opportunity to appeal to the Director of OPM.
  • The Director's decision is final for administrative purposes.
  • Appellants should insure that their appeals are complete and responsive to the actual reasons for the LFCC denial decision.
eligibility appeals process
Eligibility Appeals Process
  • Appeals limited to the facts justifying the reversal of the original decision
  • Appeals may not be used to supplement applications with missing or outdated documents
  • No oral arguments. All appeals are in writing only.
federation requirements
Federation Requirements
  • Listing of Eligible Member Organizations (Legal name, DBA, EIN, AFR, and Local Presence Category)
  • Submission of Audit Regardless of Size
    • Audit must include verification organization is honoring designations
  • Board Terms and Meeting Dates/Locations
  • Annual Report
    • Describe Dues and/or Fees Arrangements
application self audit form
Application Self - Audit Form

Prepare Self Audit of your application using provided form

- Submit Self Audit with application

  • LFCC will compare your self audit with theirs
application receipt confirmation
APPLICATION RECEIPTCONFIRMATION

If sent with application, e-mail from PCFO will confirm arrival of application.

pcfo application completeness pre screen
PCFO APPLICATION COMPLETENESS PRE SCREEN
  • If the indemnification statement is signed and returned with application
  • Charity will be notified via e-mail or telephone of screening findings.
  • Organization may choose to provide items noted or not.
  • The PCFO does NOT make any eligibility decisions
slide70
Q & A

Questions?