CFC Application Training

1. CFC Application Training Northern New England Combined Federal Campaign 2010 Local Charity Applications

2. Contents • Introduction • CFC Information • Application Information • Applications • Appeals Process • Questions • Conclusion

3. CFC Information Mission:To promote and support philanthropy through a program that is employee-focused, cost-efficient, and effective in providing all Federal employees the opportunity to improve the quality of life for all.

4. CFC Information • Established in 1961, the CFC is the only government-authorized solicitation of employees in the Federal workplace on behalf of charitable organizations. Largest workplace fundraising campaign in the world. • NNE CFC raised $1,144,000 and served the 18,000+ federal employees of the states of New Hampshire, Vermont and the Portsmouth Naval Shipyard in 2009.

5. OPM Sets Policy & Procedures Conducts Local Campaign (Leadership) Local Federal Coordinating Committee (LFCC) CFC Information PCFO Local Federations & Local Independents Partners in Local Campaign Manages Campaign

6. Application Information Application Period: February 1 – Applications went out March 15 – Applications are due Review Process: March 16 – LFCC will begin review of applications April 30 – LFCC will notify local charities of decisions Appeals Process: June 4 – LFCC will complete the appeal review July 30 – OPM will complete the appeal review Campaign Dates: Sept 1 – Dec 15th – Campaign runs March/April 2011 – charities are notified of designations and disbursement of fund begins

7. Application Information • Organization Legal name of the applicant organization. If the name of the organization differs from the name that appears on the IRS determination letter, IRS Form 990, or audited financial statements, official Doing Business As (DBA) documentation from the IRS or state government authorizing use of this name must accompany the application. The EIN must be included. • Employer Identification Number (EIN) The nine-digit EIN that appears on the IRS determination letter and the IRS Form 990 submitted with this application.

8. Application Information • 5 Digit CFC Number The 5 digit number assigned to the organization. Organizations that did not previously participate in the CFC should leave this field blank. • Mailing Address A physical mailing address must be provided - Post Office Box addresses will not be accepted. • Telephone Organization’s telephone number.

9. Application Information • Contact Person* The contact person is the individual to whom the CFC will direct communications. This may be any individual in the organization. • Contact Address* Contact person’s physical mailing address if different than the organization's address. Post Office Boxes may be used. Participation decision letters and other CFC communications will be sent to the contact person at this address. • Contact Telephone* Contact person’s telephone number, if different than the organization’s telephone number.

10. Application Information • Fax* Contact person’s fax number. • Contact E-Mail* Contact person’s electronic mail address. Applicants are encouraged to provide more than one email address. • Website Address List the complete Internet address of the applicant organization (no e-mail addresses). This information is required, if the organization has an Internet address. * This will be used as the point of contact for all 2010 correspondence. Please insure that the information remains valid independent of possible staffing changes.

11. Application Information • Disbursement Address List the address where paper checks will be sent, if different from mailing address. Post office boxes may be used for the disbursement address. • Electronic Funds Transfer (EFT) Information List the Routing and Account numbers, along with the name of the financial institution, where funds should be disbursed. This is an optional method for receipt of CFC contributions. NOTE: Some campaigns may elect not to disburse funds electronically.

12. Certification #1For Local Independent Organizations • Applicants must fill in the hours of operation for each day of the week (minimum of 15 hours) and the county and state where the office is located. • Applicants must choose from one of the following three options: • Substantial Local Presence • Adjacent Local Campaign • Substantial Statewide Presence

13. Certification #1 (Cont.) For Local Independent Organizations Option #1: Substantial Local Presence • Organization is 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 by disseminating information or publications via the U.S. Postal Service, the Internet, or a combination thereof.

14. Certification #1 (Cont.) For Local Independent Organizations Option #2: Adjacent Local Campaign • A local campaign whose geographic border touches the geographic border of another local campaign. (Information on the geographic boundaries of local CFC Campaigns can be found on the CFC website at www.opm.gov/cfc/Search/Locator.asp.) • Participation in a local campaign via an adjacency determination does not grant the organization a substantial local presence in the adjacent local campaign and participation via adjacency cannot be used to establish adjacency to local • campaigns bordering the adjacent • campaign area.

15. Certification #1 (Cont.) For Local Independent Organizations Option #3: Substantial Statewide Presence • An Organization that provides or conducts real services, benefits, assistance or program activities in the previous year (calendar year 2009) 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 by disseminating information and publications via the U.S. Postal Service, • the Internet, or a combination thereof.

16. Attachment A For Local Independent Organizations Describe: • Who received the service, benefit, assistance, or program activity. • What the service, benefit, assistance, or program activity is. • Where the service, benefit, assistance, or program activity was delivered. • When the service, benefit, assistance, or program activity was delivered. • How the service, benefit, assistance, or program activity was delivered.

17. Attachment A (Cont)For Local Independent Organizations 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

18. Attachment A (Cont.)For Local Independent Organizations Applicants should avoid: • Generalized statements • Listing “offered” services • Listing location of members, affiliates, or board members • Listing the residencies of visitors to a facility

19. Attachment A (Cont.) For Local Independent Organizations Applicants should avoid (Cont.): • 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

20. Certification #1For Local Federations • Federations must have 15 or more member organizations that individually meet all local eligibility criteria for participation in this campaign. Include list of eligible members as Attachment A • The member organizations must have either a substantial local presence in the geographic area served by the local campaign, a substantial local presence in the geographic area served by an adjacent local campaign, or a substantial statewide presence.

21. Attachment AFor Local Federations • List of all eligible member organizations (minimum 15 members in addition to the federation) that meet all local eligibility criteria for participation. • NEW THIS YEAR: FEDERATIONS MUST COMPLETE THE EXCEL SPREADSHEET FOR ALL THEIR MEMBERS THAT THEY RECEIVED WITH THEIR APPLICATION. • Include their legal names, EINs, administrative and fundraising rates, and the local presence category under which each member is eligible for participation in the local campaign (e.g. Local, Adjacent, or Statewide).

22. Certification #2For Local Independent Organizations & For Local Federations Federations and individual charities: • Must be recognized by the Internal Revenue Service as a 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

23. Attachment BFor Local Independent Organizations & For Local Federations • Must submit a copy of a current, most recent IRS determination letter. (If the name of the applicant organization differs on the IRS determination letter, the IRS Form 990, or audited financial statements, documentation from the IRS or state government authorizing this name change must accompany the application.) • NEW THIS YEAR: FEDERATIONS MUST SUBMIT A COPY OF THE 501(C) 3 FOR EACH OF THEIR MEMBERS. • Federal Tax ID Number must be included.

24. Attachment B (Cont’d) For Local Independent Organizations & For Local Federations • An organization that is part of a group exemption or bona-fide chapter or affiliate of a national organization acting as a single corporate entity, must provide a letter from its affiliated national organization with its IRS determination letter.

25. Attachment B (Cont’d) For Local Independent Organizations & For Local Federations 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”

26. Certification #3For Local Independent Organizations Applicants must choose one of the following Options: • Organization is not part of a group exemption. • Organization is part of a group exemption. • Organization is a bona-fide chapter or affiliate operating under a national corporation’s tax ID.

27. Certification #3 (Cont.) For Local Independent Organizations Option 1: Not Part of a Group Exemption • Organization is not part of a group exemption. The Name and EIN on the IRS determination letter will be unique. Option 2: Part of a Group Exemption • Organization is part of a group exemption. The name may or may not be unique. Organizations should have an EIN that is different from the EIN on the national group exemption letter. Must have a certification letter from the national organization. • Organization is a bona-fide chapter or affiliate operating under a national corporation’s tax ID.

28. Certification #3 (Cont.) For Local Independent Organizations Option 3: Bona-fide Chapter or Affiliate • Organization is a bona-fide chapter or affiliate operating under a national corporation’s tax ID. Name and EIN will be the same as national. Must provide letter from national.

29. Certification #4For Local Independent Organizations ( #3 For Federations) • Must certify that it is a human health and welfare organization providing services, benefits, or assistance to, or conducting activities affecting human health and welfare. • The services, benefits, assistance, or program activities affecting human health and welfare provided in 2008 are reflected in ATTACHMENT A for Local Independent Organizations.

30. Certification #4For Local Federations Applicants must choose from one of the following two options: • Has been operating for more than one year. • Has not been operation for more than one year.

31. Certification #4 (Cont.)For Local Federations Option 1: Operating more than 1 Year • Organization accounts for its funds on an accrual basis in accordance with Generally Accepted Accounting Principals (GAAP) • Organization has been audited in accordance with Generally Accepted Auditing Standards (GAAS) by an independent CPA in the immediately preceding year. • Include as Attachment C a copy of the audited financial statement for a fiscal period ending on or after June 30, 2008.

32. Certification #4 (Cont.)For Local Federations Option 2: Operating Less than 1 Year • Organization accounts for its funds on an accrual basis in accordance with Generally Accepted Accounting Principals (GAAP) • Organization has been operating for less than one year and therefore is not required to submit audited financial statements.

33. Certification #5For Local Independent Organizations Applicants must choose one of the following threerevenue options: • Revenues over $250,000. • Revenues between $100,000 and $250,000. • Revenues less than $100,000.

34. Certification #5 (Cont.)For Local Independent Organizations Option 1: Revenues more than $250,000 • Organization accounts for its funds on the accrual basis in accordance with Generally Accepted Accounting Principles (GAAP) • Organization has an audit annually by an Independent certified public accountant in accordance with Generally Accepted Auditing Standards (GAAS). Include this audit as Attachment C. • If using national organization information, provide certification from CEO of affiliated national organization.

35. Certification #5 (Cont.) For Local Independent Organizations Option 2: Revenues between $100,000 & $250,000 • Organization accounts for its funds on the accrual basis in accordance with Generally Accepted Accounting Principles (GAAP) • Organization has an audit annually by an Independent certified public accountant in accordance with Generally Accepted Auditing Standards (GAAS). • The audit must be available if requested

36. Certification #5 (Cont.) For Local Independent Organizations Option 3: Revenues less than $100,000 • Organization must have controls in place to ensure funds are properly accounted for and it can provide accurate timely financial information to interested parties.

37. Attachment CFor Local Independent Organizations & For Local Federations • The audit must cover the fiscal period ending on or after June 30, 2007. • Audit period should match submitted IRS 990 period. • The audit must state the organization accounts for its funds in accordance with GAAP and it was audited in accordance with GAAS. • The audit must be signed, dated and be on the audit firm’s letterhead. • If it is a consolidated audit (covers a National Organization) their must be a separate audited section on this applicant. • “Except for” statements may cause denial. • Federations must have a statement in the • audit stating “honors designations made to each member organization.

38. Certification #6For Local Independent Organizations (#5 For Local Federations) Applicants must choose one of the following 2 options: • Organization is required to prepare and submit to the IRS an IRS Form 990. • Organization is not required to prepare or submit to the IRS an IRS Form 990.

39. Certification #6 (Cont,) For Local Independent Organizations (#5 For Local Federations) Option 1: Organization submits IRS Form 990 • Submit a copy of the complete IRS Form 990 for a period ending no later than June 30, 2007 as Attachment D. Option 2: Organization does not submit IRS FORM 990 • Submit a pro forma IRS Form 990 as Attachment D.

40. Attachment DFor Local Independent Organizations & For Local Federations • All supplemental information must be included. • A signature in the box marked “Signature of Officer” is required. The preparers signature alone is not sufficient. • IRS forms 990EZ, 990PF,and comparable forms are not acceptable substitutes. Smaller organizations that file a IRS Form 990EZ may submit it with the appropriate pro forma pages described below for organizations that submit to us a pro forma IRS Form 990.

41. Attachment D (Cont.) For Local Independent Organizations & For Local Federations • Organizations that submit a pro forma 2007 IRS Form 990 must complete page 1 and Part V only. • Organizations that submit a pro forma revised 2008 IRS Form 990 must complete 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); and page 10 (Part IX, Statement of Functional Expenses).

42. Certification #7For Local Independent Organizations (#6 For Local Federations) Applicants must choose one of the following two options: • If fiscal period ended before 12/31/08, Compute the administrative and fundraising rate of the organization from a 2007 IRS Form 990. • If fiscal period ended after 12/31/08, Compute the administrative and fundraising rate of the organization from a 2008 Revised IRS Form 990.

43. Certification #7 (Cont.) For Local Independent Organizations (#6 For Local Federations) Option 1: 2007 IRS Form 990 • Add the amount spent on “management and general” (line 14) to “fundraising” (line 15). • Divide the sum by “total revenue” (line 12).No other methods may be used to calculate this percentage. • All percentages must be listed to the tenth of a percent (XX.X%).

44. Certification #7 (Cont.) For Local Independent Organizations (#6 For Local Federations) • Option 2: 2008 Revised IRS Form 990 • Add the amount in Part IX (Statement of Functional Expenses), Line 25, Column C (Management and General Expenses) to the amount in Line 25, Column D (Fundraising Expenses). • Divide the sum by Part VIII (Statement of Revenues), Line 12, Column A (Total Revenues). • No other methods may be used to calculate this percentage. • All percentages must be listed to the tenth of a percent (XX.X%).

45. Certification #8For Local Independent Organizations (#7 For Local Federations) • The organization is directed by an active and responsible governing body. • The members of this governing body have no material conflict of interest. • The majority of the members of this governing body must serve without compensation. • Federations must include Attachment E.

46. Attachment EFor Local Federations • A complete list of the federation’s board of directors and the beginning and end dates of each individual’s current term of office. • A complete list of the board’s meeting dates and locations of the previous calendar year.

47. Certification # 9For Local Independent Organizations (#8 For Local Federations) • The organization prohibits the sale or lease of CFC contributor lists.

48. Certification # 10For Local Independent Organizations (#9 For Local Federations) • The Organization conducts publicity and promotional activities based upon its actual program and operations, that these activities are truthful and non-deceptive, include all material facts, and make no exaggerated or misleading claims.

49. Certification # 11For Local Independent Organizations (#10 For Local Federations) • The organization named in this application effectively uses the funds contributed for its announced purposes.

50. Certification # 11For Local Federations • The Federation 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.