Welcome to

2015 CFC Charity Guide Application Training for Local

Independent Charities

Introductions

Kim Kessler – Director, PCFO

Kevin Readey - Relationship Manager, PCFO

Nora Lyons – Campaign Associate, PCFO

PCFO – Principle Combined Fund Organization

Campaign Management

• Honor employee designations

• Help to ensure no employee is coerced

• Train Loaned Executives, Coordinators & Keyworkers

• Ensure no employee is questioned as to his or her designation

• Prepare campaign materials (with LFCC approval)

• Fiscal Management & Audit Responsibilities

PCFO Responsibilities

Structure

OPM

Area Federal

Agencies

PCFO

CABINET

Local, National and

International Charities

LFCC

Loaned Executive

s

Sets Policy & Procedures

Conducts Local Campaign

Manages Local Campaign(Principal Combined Fund Organization)

Leadership of LFCC(Local Federal Campaign Committee)

What is the CFC?• CFC is the world’s largest and most successful annual

workplace fundraising campaign.

• There are 151 CFC’s throughout the country and internationally that raise millions of dollars each year.

• To date federal employees have collected over $7 billion dollars for local, national, and international charitable organizations.

• Pledges made by Federal civilian, postal and military donors during the campaign season support eligible non–profit organizations that provide health and human service benefits throughout the world.

• The Central Ohio and WV CFC raised over $1.2 million dollars during the 2014 campaign.

33 County Giving AreaAdams, Athens, Brown, Coshocton, Delaware, Fairfield, Franklin, Gallia,

Guernsey, Highland, Hocking, Jackson, Lawrence, Licking, Logan, Madison, Marion, Meigs, Morgan, Morrow, Muskingum, Perry, Pickaway, Pike, Ross,

Scioto, Union, Vinton, and Washington counties in Ohio.

Cabell, Wayne and Wood counties in West Virginia.

Campaign Overview

- 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 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.

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/Unaffiliated Organization - An organization that applies to the CFC on its own behalf. Local unaffiliated organizations apply to the Local Federal Coordinating Committee (LFCC).

*International, National or Local

Campaign Overview

Each organization that is deemed eligible to participate in the CFC is entitled to only one listing in the CFC brochure, regardless of the number of federations to which that organization belongs, with the exception that a national organization and its local affiliate may both be listed if the requirements of 5 CFR § 950.401(i) are met. (EXAMPLE Boy Scouts)

If it comes to the attention of the Local Federal Coordinating Committee (LFCC) that an organization has applied more than once, the LFCC will contact the organization directly to request written confirmation of the one application to be considered.

In the absence of a satisfactory response, all of the applications may be denied.

Review Process – All Applicants

Completeness Review & LFCC Review• Applications must be physically received at 360 S.

Third Street, Columbus, OH 43215 by or postmarked by 5pm, March 2, 2015 to qualify for consideration – no late applications will be accepted

• PCFO conducts “Pre-Screening” and reviews for administrative oversights; contacts Charity for reply (March 2 – March 23)

• LFCC Application Committee – will meet for several days as needed between March 23 and March 27 to review all apps

• LFCC notifications (Approved/Denied) sent by April 30

Review Process – All Applicants

Completeness Review & LFCC Review – cont’d

• Replies from Charities to denial letters due by EOB day, Thursday, May 7

• LFCC Application Committee – Final Appeals Meeting (all denial replies are reviewed) held on May 14; Final notifications sent to Charities no later than June 4

• OPM Ruling on Appeals– July 31, 2015

What The Application Process is About

Slowly Review Exact Needs

Compiling & Labeling Documents

Taking your Time

Double Check Every Item

Contact our office for help

Application Timeline• February 2 to March 2 - open application period• February 4 – Local Independent training• February 6 – Huntington, WV Ind. training• March 2, 5pm – absolute closing – app must be

postmarked or received by this time• March 23 to March 27 – App Reviews by LFCC• April 24 – Denial Letter send via certified mail• April 30 (likely earlier) – Approval Letter sent• May 7 – Final day to submit REPLY to denial letter• May 14 – Final Appeals meeting by LFCC• June 4 – Final day PCFO to mail findings

Getting Started

• Obtain hard copy of CFC Charity Guide Application from Training Session

• Download from Central Ohio & WVA website: www.cowvcfc.org

• Look for “Local Independent Charities”

Attachments Required

Here’s a ‘Heads Up’ on what you need to include….

• Attachment A – Who, What, When, Where• Attachment B – IRS Determination Letter• Attachment C – Independent Audit (may/may not)

• Attachment D – IRS Form 990 (full or Pro Forma)

• Attachment E – 25 Words & Taxonomy codes

Application – Page 8• OPM Form 1647-C (fancy for “2015 Application Instructions for Local

Independent Organizations and Members of Federations”)• Pages 1-7 are instructions/guidelines• Pages 8-12 makeup the actual application• Organization legal name and EIN• Include 5 Digit Code (if previously participated)• Organization Address: MUST be a physical mailing address,

NO PO BOX ADDRESSES CAN BE USED HERE!• Contact info – Who is responsible for the application?• Contact can be different than the certifying official• Website address• Electronic Funds Transfer (EFT) – NOT APPLICABLE – UWCO

does not send electronic transfers – please leave blank

Box 1 – Page 9

CHECK THE BOX!!!

This THE ONLY change to the application for 2015 from 2014. Due to the implementation of Universal Giving, all approved charities are considered “local” so long as all criteria are met

The great news is that charities only need to apply to ONE CFC, because of Universal Giving

So, you must be able to demonstrate that your charity has a substantial ‘local’ presence – meaning…

Apply to 1 CFC – NICE!!

Local presence is defined as:

• A staffed facility, office or portion of a residence dedicated exclusively to that organization and is located within the COWV CFC campaign area

• Available to members of the public seeking its services or benefits• The facility must be open at least 15 hours a week• Have a telephone dedicated exclusively to the organization• May be staffed by volunteers; Substantial local presence cannot be met on the basis of

services provided solely through an “800” telephone number, the internet, the U.S. Postal Service or a combination thereof

All approved ‘Local’ COWV charities will be listed among all charities available via OPM website, the COWVCFC.com website and online platforms. Only approved local charities within the Central Ohio West Virginia campaign will be listed in the printed paper Charity Guide

• Once you’ve checked the box, • List office address – if different from previous

page• Include standard hours of operation• Include dedicated phone number• Include County and State office is located

Attachment A

“ATTACHMENT A” provides support to your local presence/declaration.

ASKS YOU TO DESCRIBE:

• WHO received the service, benefit, assistance, or program activity in 2014

• WHAT the service, benefit, assistance, or program activity

• WHEN it was delivered in 2014• WHERE it was delivered in 2014

Attachment A

Factors OPM/LFCC will consider from Attachment A

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

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

Attachment A

Applicants should avoid– Generalized statements– Listing “offered” services– Listing location of members, affiliates, or

board members– Listing the residencies of visitors to a facility– Listing services with no detail (who, what ,

qty, etc)– Repetitive text– Fundraising activities as a service

Attachment A

Example of a “Qualifying” Attachment A

OhioColumbus 1-3, 2014 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

Attachment A

Example of a “Non-Qualifying” Attachment A:

Columbus, OH Charity Central holds an annual health fair to promote healthier lifestyles in our community.

Or

Columbus, OH November 2014 ABC Charity’s Ohio chapter held a workshop for local families interested in learning more about ABC’s research programs. Presentations were made by ABC Charity Ohio’s Executive Director and Vice President of Research.

Attachment A

Example of a “Qualifying” Attachment A

Columbus – Calendar Year 2014 (scholarships awarded bimonthly)Charity awarded scholarships to the following Columbus high school students pursuing a degree in computer technology to attend the college or university of their choice:

A. Smith, Grandview Heights ($1,800) J. Doe, St. Charles Preparatory ($5,000)B. Callahan, Whitehall City ($1,200)D. Johnson, Pickerington South ($800)C. Woods, Brookhaven ($900)

Attachment A

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

Box 2 – Page 9CHECK THE BOX!!!

If you are here, you must be a 501(c)(3) organizationInclude 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 stating relationship

• FEDERATIONS – Must submit all member charity 501c3 letters

Attachment B

501(c)(3) Status:

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)

Any charity that has not been verified as having 501(c)(3) tax-exempt status cannot be approved by the LFCC

You MUST have it or don’t waste postage

Attachment B

Bona-Fide Chapters and Affiliates of a National Organization

• Include certification from CEO or equivalent (of parent) verifying that applicant is in good standing with the national organization and is covered by the national organization’s 501(c)(3) determination.

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

Attachment B 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”

NEED A NEW IRS FORM?:

– Contact the IRS Tax-Exempt Division at: (877) 829-5500.

– Request an “Affirmation Letter” and submit the letter to the CFC with application.

Box 3 – Page 9Choose one of three options:

OPTION ONEI certify that the organization named in this application is not part of a group exemption;

- Name and EIN on IRS Determination letter will be the same

OPTION TWOI certify that the organization named in this application is part of a group exemption;

- Name may or may not be the same- Organizations using this certification WILL have an EIN that is

different from the EIN on the national group exemption letter- Must have group number, usually a four digit number. This

number comes from the national organization and is mentioned in 501c3 letter.

- Must have certification letter from national organization verifying group exemption dated on or after 10/1/13.

Box 3

OPTION THREE

I certify that the organization named in this application is a bona-fide chapter or affiliate that 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

office dated on or after 10/1/14 stating your affiliation

Box 4 – Page 9

Human Health & Welfare Statement

Check the Box!!!

I certify that 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.

2014 human health/welfare service(s) must be explained in Attachment A

Box 5 – Page 10Audit & ReportingChoose 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) for FYE June 30, 2013 or more recent

- Include as Attachment C (most current auditors report & financial statements)

- CHAPTERS - If using national organization information, you must provide a certification letter from CEO of affiliated national organization for FYE June 30, 2013 or more recent

OR

Box 5 – Page 10

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,

- Has an audit annually by an independent certified public accountant in accordance with generally accepted auditing standards (GAAS)

- Provide charity tax form IRS 990 or modified Pro-Forma 990 for period ending no earlier than June 30, 2013

Do not need to provide actual audit, but must be available if requested by LFCC/OPM

OR

Box 5 – Page 10

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 no earlier than June 30, 2013 and has controls in place to ensure funds are properly accounted for and it can provide accurate timely financial information to interested parties.

Box 5IMPORTANT INFO RE: FINANCIALS….

Audit must cover the fiscal period ending not more than 18 months prior to the January of the campaign year to which the organization is applying (January 2015 – 18 months = June 30, 2013)

Audit must state that the 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 may cause denial

Audit report must be signed, dated and be on the audit firm’s letterhead. Copies are accepted

Box 6 – Page 10TWO OPTIONS

OPTION ONE

I certify that 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 earlier than June 30, 2013, including signatures in the box marked “Signature of Officer” as Attachment D .

Tax Form 990 – Signature needed on Page 1 (Copy is accepted)

Schedule B of 990 is not required, but all other supporting schedules are required.

Box 6 – Page 10

OPTION TWO

I certify that the organization named in this application is not required to prepare and submit an IRS Form 990 to the IRS

This does NOT mean you do not have to provide any financial documentation…..

You must submit a Pro-Forma 990 for a period ending no earlier than June 30, 2013

Box 6 – Page 10

IF YOU CHECK THE SECOND BOX, YOU NEED TO PROVIDE A “PRO FORMA 990”

If the organization’s fiscal period ended on or after June 30, 2013, application must include a pro forma IRS Form 990 (or summary report) of the most current financials and MUST include the following from an IRS Form 990:

• Page 1 (Part I, Summary and Part II, Signature Block)• Pages 7 and 8 (Part VII, Compensation section A)• Page 9 (Part VIII, Statement of Revenues)• Page 10 (Part IX, Statement of Functional Expenses)• Page 12 (Part XII, Financial Statements and Reporting)

Box 6 – Page 10IMPORTANT INFOMRATION

Any organization’s IRS Form 990 (or Pro Forma 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

Uncompensated members must have a -0- in the compensation column

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, theorganization must either provide a letter of explanation of the differenceor submit an amended IRS Form 990

Box 6 – Page 10

Box 6 – Page 10

Boxes 7, 8, 9,10,11 & 12

Important Certifications toward your application

READ, THEN CHECK EACH BOX!!!

Box 7 – Page 11

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

Regulatory Formula• Use 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), & dividing the sum by Part VIII (Statement of Revenue), Line 12, Column A (Total Revenue). 

• No other methods may be used to calculate this percentage. All percentages must be listed to the tenth of a percent (i.e. 10.0% or 15.5%).

Box 8 – Page 11

I certify that 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.

Box 9 – Page 11

I certify that 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

Box 10 – Page 11

I certify that the organization named in this application 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.

Box 11 – Page 11

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

Box 12 – Page 11

I certify that the organization named in this application is in compliance with all statures, Executive order, and regulations restricting or prohibiting US persons from engaging in transactions and dealings with countries, entities, or individuals subject to economic sanctions….

Sanctions compliance is required

The list of countries, entities, or individuals referenced in the certification can found at www.treasury.gov/ofac.

Guidance in CFC Memorandum 2005-13

Item 13 – Attachment E

Include as Attachment E a 25-word statement for listing in the campaign brochure and taxonomy code specification. (See Instructions Item 13 for additional required information and the new optional taxonomy codes.)

We encourage you to list what county you provide service to or where county office resides if not in Franklin County

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

Automatic pens and/or signature stamps MAY be used

Federations may provide photocopies for member charities

Applicants must check the box next to each statement to demonstrate agreement to comply with the statement

Eligibility Appeals

All organizations that apply for local eligibility and are found ineligible have only 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 OPM 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

Appeals may not be used to supplement applications that had missing or outdated documents

Automatically Denied From Campaign

All required documents and attachments must be complete and submitted before the application deadline

Missing or out of date documents will not be accepted during the appeals process

The CFC will not accept applications with modifications to any of the certification statements

Most Common Mistakes• One of more of the certifications does not have a box

checked.

• IRS Form 990 not signed by an Officer on page 1 (June 30, 2013 or current)

• IRS Form 990 and Audit time periods do not match. (June 30, 2013 or current)

• IRS Form 990 and Audit are prepare using two different accounting methods; one is prepared using cash method of accounting; one is prepared using accrual method of accounting. (Must be accrual accounting method)

Most Common Mistakes• IRS From 990 is incomplete – does not include all

supplemental statements and schedules

• Agency with income over $100,000 did not use accrual method of accounting

• Board member count and list does not match or is less than stated

• Agency does not provide adequate documentation of Human Health and Welfare 2014 as defined by the regulations. (Attachment A)

Completeness StatementThe PCFO is not required to offer an application pre-screening and that the PCFO is not responsible for ensuring the application is complete or correct by pre-screening it. The PCFO will pre-screen the application only as a courtesy and will pre-screen for completeness, not correctness. It is the responsibility of the applicant to verify the information submitted is correct. Should the PCFO note an application or application information that is not complete, it may notify the applicant of such discrepancy (ies) as a courtesy but is not required to do so and is not responsible should a notation of a discrepancy not be noted by the PCFO. It is the responsibility of the applicant to correct or not correct any application discrepancies noted by the PCFO as it deems appropriate. If an applicant resubmits an application or application information it is the responsibility of the applicant to confirm with the PCFO that it was received prior to the application deadline and included in their application file.

What’s Next?

Double check everything

Make sure it arrives by mail only (electronic/faxed applications are not accepted)

Make sure the package is postmarked no later than 5pm Monday, March 2, 2015

Where to Send?

Send your completed application packet to:

2015 CFC Applications

c/o UWCO

Attn: Kevin Readey

360 S. Third Street

Columbus, Ohio 43215

A Word about what is happening with the CFC beginning with the 2016 campaign….

Campaign Website

www.cowvcfc.org