Welcome to Applications 101

1

• Welcome to Applications 101
• CFC Federation Member Applications
• Thursday
• 1030 a.m. 1200 p.m.
• May 13, 2004

2
CFC Structure
3

• OPM

• Office of Personnel Management
• Publishes CFC Regulations
• Establishes Timelines
• Provides Direction and Guidance
• Develops Publishes National / International
  List
• Establishes Rules on All Applications
• Final Appeal
• Audits

4

• LFCC

• Local Federal Coordinating Committee
• Hires PCFO
• Approves Budget
• Conducts Local Agency Eligibility
• Provides Oversight of PCFO
• Approves Campaign Material
• Conducts Compliance Audit

5
Cabinet
LFCC

• Cabinet
• Leadership Element of LFCC
• Members from Federal Community (Federal
  Civilians, Military Postal)
• Final Campaign Decisions
• Liaison to Federal Agency Heads

6
PCFO
Local Federal Agencies
Coordinators, Project Officers, Key Workers
Loaned Executives
Charities

• Principal Combined Fund Organization
• Manages All Aspects of Campaign
• Develops Campaign Materials
• Fiscal Agent
• Collects Processes Distributes Pledges
• Train Loaned Executives Campaign Personnel

7

• The federation CFC application consists of
  three components
• Contact information
• 17 Certifications, and
• Attachments A thru G

8

• We will review each required certification
  statement and its corresponding supporting
  documentation, if applicable.
• Please ask questions as we proceed.

9

• Certification 1
• You must certify and demonstrate (Attachment A)
  that the organization named in this application
  provided or conducted real services, benefits,
  assistance, or program activities in 15 or more
  different states in the three year period
  immediately preceding this application.
• OR

10

• You must certify that the organization named in
  this application provided or conducted real
  services, benefits, assistance, or program
  activities in a foreign country in the three-year
  period immediately preceding this application.
• This does not mean you only have to describe the
  services you provided for 1 year in the past 3!

11

• Description of Services Attachment A
• Start with your IRS Form 990, Page 2, Part III
• Other resources include your annual report, your
  website, and internal program managers

12

• DESCRIBE
• WHO received the service
• WHAT was the service provided
• WHEN it was delivered
• WHERE it was delivered
• HOW it was delivered
• NOTE 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.

13

• Sample Description of Services for Jeffs Relief
  Fund
• Philippines
• Jeffs Relief Fund collects reusable commodities
  during the year and partners with non-government
  organizations throughout the world to distribute
  needed food, clothing and medicines.
• In 2004, Jeffs Relief Fund (JRF) made 33
  shipments of aid and relief to the Philippine
  Islands. These shipments, weighing more than 16
  tons, consisted of food, clothing, medicine and
  medical supplies, vitamins, educational materials
  (i.e. books, non-fiction and text), school
  supplies and toys. These commodities were
  distributed through the following agencies
  Charities For The Poor, The Stooges Foundation,
  University of Cebu, University of Southern
  Philippines and Universal Aide Society.

14

• In 2003, JRF made 26 shipments of food,
  clothing, medicine, medical supplies, toys, baby
  food and supplies, blankets, educational books
  and materials, and personal care items. Almost
  12 tons of supplies were distributed in
  partnership with Missionary Care Services, The
  ABCD Foundation, and University of Southern
  Philippines.
• In 2002, JRF made 19 shipments of food,
  clothing, medicine, medical supplies, toys, baby
  food and supplies, blankets, educational books
  and materials, and personal care items. Almost 8
  tons of supplies were distributed in partnership
  with Missionary Care Services, The ABCD
  Foundation, and University of Southern
  Philippines.

15

• Certification 2
• You must certify that the Internal Revenue
  Service recognizes the organization named in this
  application as tax-exempt under 26 U.S. 501(c)(3)
  and to which contributions are tax-deductible
  pursuant to 25 U.S.C. 170.

16

• IRS Determination Letter Attachment B
• Additional information must accompany letters
  with expired advance ruling periods.
• If name on IRS letter, IRS Form 990, audit, or
  annual report is different from applicant,
  official documentation from IRS or state
  government must be included.

17

• Certification 3
• You must also certify that the expenses of the
  organization named in this application connected
  with lobbying and all attempts to influence
  voting or legislation at the local, State or
  Federal level would classify it as a tax-exempt
  agency under 26 U.S.C. 501(h).
• OR

18

• You must certify that the federation named in
  this application does not engage in lobbying nor
  does it attempt to influence voting or
  legislation at the local, State or Federal level.

19

• Advocacy is permitted by 501(c)(3)
  organizations.
• Section 501(h) states that an organization does
  not spend more than 20 of its first 500,000,
  15 of the next 500,000, and so on.
• Verified by IRS Form 990, Schedule A, Page 5,
  Part VI-A and B.

20

• Certification 4
• You must 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.

21

• Human Health Welfare Statement Attachment C
• Describe what your organization does and how that
  helps people.
• It should be at least 1 paragraph but no more
  than one page.
• Must be printed on your organizations letterhead.

22

• Certification 5
• I certify that the organization named in the
  application accounts for its funds in accordance
  with generally accepted accounting principles
  (GAAP).

23

• Certification 6
• I certify that the organization named in the
  application was audited in accordance with
  generally accepted auditing standards (GAAS) by
  an independent certified public accountant in the
  immediately preceding year.

24

• Audited Financial Statements Attachment D
• Must be on an ACCRUAL basis.
• Certified Public Accountants (CPA) compilations
  and reviews are not accepted.
• Consolidated audits must contain a separate
  audited section on applicant.

25

• The IRS Form 990 and audit must cover the same
  fiscal period. If revenue and expenses on the two
  documents differ, these amounts must be
  reconciled by a certified public accountant
  either in an accompanying signed statement or IRS
  Form 990, Parts IV-A IV-B.)
• Should be on Auditors Letterhead.
• Should be signed by the auditor or a partner of
  the firm.

26

• Independent Auditors Report
• We have audited the accompanying consolidated
  statement of financial position of Jeffs Relief
  Fund. (JRF, a nonprofit organization) and its
  subsidiary as of June 30, 2003, and the related
  consolidated statements of activities, functional
  expenses and cash flows for the year then ended.
  These consolidated financial statements are the
  responsibility of JRFs management. Our
  responsibility is to express an opinion on these
  consolidated financial statements based upon our
  audit.
• We conducted our audit in accordance with U.S.
  generally accepted auditing standards and the
  standards applicable to financial audits
  contained in Government Auditing Standards,
  issued by the Comptroller General of the United
  States. Those standards
• In our opinion, the consolidated financial
  statements referred to above present fairly, in
  all material respects, the financial position of
  Jeffs Relief Fund, Inc. and its subsidiary as of
  June 30, 2003, and the changes in their net
  assets and cash flows for the year then ended in
  conformity with U.S. generally accepted
  accounting principles.
• NOTE This report must be printed on CPA
  Companys/Auditors letterhead and signed by the
  same.

27

• Certification 7
• 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.

28

• IRS Form 990 Attachment E
• The IRS Form 990 is the most critical component
  of any public sector workplace campaign.
• It is the foundation for the Combined Federal
  Campaign application and 99 of all state and
  local applications.

29

• Certification 8
• I certify that the federation named in this
  application in the immediately preceding year has
  spent 25 or less of its total support and
  revenue on administrative and fund-raising
  expenses.
• OR

30

• I certify that the federation named in this
  application in the immediately preceding year has
  spent in excess of 25 of its total support and
  revenue on administrative and fund-raising
  expenses. This percentage is reasonable under
  the circumstances.

31

• Detailed Justification Plan to Reduce Overhead
  - Attachment F
• Identify the special circumstances that
  attributed to overhead rising above 25.
• Action taken by the Board or management to
  correct.
• Do not over emphasize increasing revenue, show
  where costs are being reduced.

32

• IRS Form 990
• From the Top Page 1
• For organizations not required to file IRS Form
  990, simply type or write across the top of page
  1 For Campaign Purposes Only, Not Filed with the
  IRS. Must complete the first 12 pages including
  all attachments display on these pages.

33

• General Information
• A. Tax Year Blank if the same as the calendar
  year, otherwise the beginning and ending date of
  the tax or fiscal year must be entered. The
  ending date must be no older than 18 months prior
  to January of the campaign year (For the 2005
  campaign, June 30, 2003).

34

• B. Generally, not applicable.
• C. Name of Organization - Legal Name is required.
  It is highly recommended to parenthetically
  include your Doing Business As (DBA) name.

35

• D. Employer Identification Number (EIN)
  Assigned by the IRS as a unique identifier for
  all tax-exempt organizations.
• F. Accounting method - Must be accrual. No
  exceptions.
• J. Organization Type Must be 501(c)(3).

36

• Part I - Revenue, Expenses and Changes in Net
  Assets or Fund Balances
• Line 1c. Government contributions (grants) This
  amount must be 80 or less of your total revenue
  that appears on line 12.
• Line 1c/Line 12 .80 or less.

37

• Line 14. Management and General (from line 44,
  column C) combined with line 15 this determines
  an organizations administrative and fundraising
  (AFR) total.
• Go to Part II Statement of Functional Expenses

38

• Part II Statement of Functional Expenses
• Required of all 501(c)(3) organizations.
• Controlled by management.

39

• Line 15. Fundraising (from line 44, column D) -
  combined with line 14 this determines an
  organizations AFR (overhead) total.
• Calculations
• Line 14
• plus Line 15
• equals AFR Total

40

• Calculations (cont)
• AFR (Overhead) Total
• Divided by Line 12
• Equals AFR Ratio or Percentage
• Line 17. Total Expenses (add lines 16 and 44,
  (column A))

41

• IRS Form 990 - Page 2
• Part II Statement of Functional Expenses
• Required of all 501(c)(3) organizations.
• Controlled by management.

42

• Part III - Statement of Program Service
  Accomplishments
• Information contained here forms the basis of
  your organizations description of program
  service, benefits and assistance (Attachment A)
  and your organizations Human Health Welfare
  statement (Attachment C).

43

• Part IV-A and IV-B Reconciliation of Revenue and
  Expense
• The IRS Form 990 and audit must cover the same
  period. If the revenue and expenses on these two
  documents differ, the reconciliation must be
  included in the IRS Form 990 itself or include a
  letter of reconciliation submitted by the CPA who
  completed the audit.

44

• The US Office of Personnel Management and other
  campaign regulators WILL NOT do additional
  calculations in order to reconcile conflicting
  revenue and expense totals.

45

• Certification 9
• You must certify that an active and responsible
  governing body directs the federation named in
  this application whose members have no material
  conflict of interest and a majority of which
  serve without compensation.

46

• IRS Form 990 - Page 4
• Part V List of Officers, Directors, Trustees,
  and Key Employees (List each one even if not
  compensated)
• You must list ALL officers, directors, trustees,
  and key employees of the organization that served
  at any time during the year. See IRS 990
  instructions for Key Employee definition.

47

• IRS Form 990 - Page 6
• Signature
• MUST BE Signed/dated by an Organizational
  Officer.
• MUST also include printed name and title of
  officer.

48

• Schedule A Required of all 501(c)(3)
  Organizations
• Must be included with all other
  statements/attachments.
• NOTE Your 990 is not complete without these
  6 pages.

49
(No Transcript)
50
(No Transcript)
51

• Certification 10
• You must certify that the organization named in
  this application prohibits the sale or lease of
  CFC contributor lists.

52

• Certification 11
• You must 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.

53

• Certification 12
• You must certify that the organization named in
  this application effectively uses the funds
  contributed by federal personnel for its
  announced purposes.

54

• Certification 13
• I certify that the organization named in this
  application is chartered/incorporated under a
  government entity. This entity or State is
  _______________.
• Inclusion of state of incorporation is required.

55

• Certification 14
• You must certify that the organization named in
  this application has in the preceding year
  received no more than 80 percent of its total
  support and revenues from government sources.

56

• Revenue from government sources must be computed
  from the IRS Form 990.
• Calculated by Dividing Line 1c of the IRS Form
  990 by Line 12.
• Medicare/Medicaid funds are excluded from this
  calculation (line 93f).
• If figure is over 80, a request for a waiver may
  be included in the application. This must
  include an explanation for the rate.

57

• Certification 15
• You must certify that the organization prepares
  and makes available to the public an annual
  report that includes a full description of the
  organizations activities and identifies its
  directors/governing body and chief administrative
  personnel.

58

• Attachment G Annual Report
• The annual report must be for a fiscal period
  ending on or after June 30, 2003.
• The annual report should be for the same fiscal
  period as the audit and IRS Form 990.
• The annual report must include a listing of the
  Boards terms of office and meeting dates and
  locations of all Board meetings.

59

• Certification 16
• Include as Attachment H a 25-word statement for
  campaign brochures that describes the programs
  and benefits provided by the organization.

60

• Certification 17
• I certify that the organization named in this
  application does not knowingly employ individuals
  or contribute funds to organizations found on the
  following terrorist related list promulgated by
  the U.S. Government, the United Nations, or the
  European Union.

61

• Presently these lists include the Department of
  Treasurys Office of Foreign Assets Control
  Specially Designated Nationals List, the
  Department of Justices Terrorist Exclusion List,
  and the list annexed to Executive Order 13224.

62

• Signature
• The Certifying Officials signature on page 8
  MUST be original. Automatic pens and/or
  signature stamps may not be used.

63

• As always, thank you for your patience and
  participation!
• . Your Staff