Department of the Army

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Department of the Army Fort Gordons
Family Readiness GroupsMoney Matters
Fundraising Policy

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What is a Family Readiness Group?

• An organization of family members, volunteers,
  and soldiers/civilian employees belonging to a
  unit/organization that together provide an avenue
  of mutual support and assistance and a network
  of communication among the family members, the
  chain of command, and community resources.
• (AR 608-1, dtd 21 Jul 06)

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Funding The FRG

• Commander provides-both appropriate (APF) (the
  units share of the Defense budget) and
  non-appropriated (revenues earned by post
  activities) to support legitimate requests.
• APF can be used for FRG training of volunteers
  at conferences or academies. The Commander can
  also provide other supplies and equipment for the
  FRG.
• The FRG informal fund can plan and conduct
  fundraisers within their battalion/brigade area
  but must seek approval if outside of their
  battalion area through Financial Management
  Division and have SOP on file.

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Appropriated Funds Units Funds
NAF 9J Supplemental Funds Unsolicited
Donations Informal Funds Fundraisers
Donations

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Major Changes to FRG Operations

• FRGs are an official government entity, may be
  funded just as any commanders mission and must
  abide by all Army rules.
• The Command may create an informal fund for
  Family Readiness Groups.
• Informal funds cap increased to 5,000
  annually.
• Solicitation and fundraising restrictions
  applicable to the Army must be followed by FRGs.

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FRG Official Status

• FRG is a unit commanders program
• It is not a private organization or a
  non-appropriated fund instrumentality (NAFI)
• FRG mission activities funded with APF.

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FRG Mission Activities, Resources

• Government office space and equipment
• FRG Newsletters
• Use of Official Mail Privileges
• Use of Government Vehicles
• Registered volunteers expenses, depending
  upon availability
• - Travel and training (ITOs for FRG
  volunteers)
• - Reimbursement of incidental expenses
• - Childcare while volunteering
• Childcare for Armed Forces members in support
  of a contingency operation, depending upon
  availability of funds.

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FRG Informal Funds

• IAW AR 600-20,Commanders may authorize FRGs to
  maintain informal funds for a specific purposes
• Operation of the fund must be consistent with
  Army Values, DOD 5500.7R, Joint Ethics Regulation
  and AR 600-20, Command Policy
• Fund is capped at 5,000 average balance per
  year to avoid IRS Taxes. The fund cannot raise
  over 5,000 p/yr
  

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• FRG INFOMAL FUNDS
• May be used for purely social activities,
• Holiday and FRG parties and outings, volunteer
  recognition, supplemental unit send off and
  welcome home social activities.
• MAY NOT BE USED to augment other unit informal
  funds, to purchase items which may be purchased
  with APFs, or to purchase traditional military
  gifts not related to family readiness

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Fund-Raising Activities

• FRGs are not established to be fund-raising
  organizations
• Informal funds FRGs may only conduct internal
  fundraising amongst its own member IAW AR 600-29
  and Joint Ethics Regulations (JER), for informal
  funds (AR 600-20).
• FRGs may not engage in external fundraising off
  post and only upon approval on post to go outside
  the Battalion area.
• The Garrison Ethics Advisor should be consulted
  to define the scope of internal and external
  fundraising.
• Financial Management Division (FMD) Ms. Ophelia
  Espirtu Fundraising outside Bn area 791-2012
• Food Safety Class DDEAMC 787-1215
• Ms. Pat Camacho - Private Organizations

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FRG Informal Funds

• FRG funds are authorized to maintain informal
  funds for the benefit of the membership (not for
  any specific individuals)
• Normally, not subject to formal inspections
  however, sound accounting procedures must be
  used.
• FRG funds can be investigated in the event of
  alleged wrong-doing (misuse, unexplained loss,
  theft. etc.)
• The commander or any other soldier should not be
  the signatories of the account. The FRG should
  primarily be run by spouses, with support and
  occasional oversight as needed by the commander.
  

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Cont

• The Commander also appoints a treasurer and an
  alternate to manage the FRG fund. Outings and
  activities as well as fundraisers and
  solicitations to help with those activities.
• FRG fund accounts should not be interest-bearing
  accounts.
• FRGs should not apply for private organization
  or non-profit organizational status.
• FRG does not sell goods and services- it seeks
  donations and gives goods and services to donors.
• FRG monies cannot be commingled with personal or
  unit funds, and visa versa.

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• Donations are capped off at 1,000
• The fund balance must not exceed 5,000 gross
  income annually.
• FRGs Private Organizations (PO) are separate
  bodies that are immune from command influence.
• No mission/formal unit money for cake or pie
• Unit money can be used for mission of the FRG,
  but cannot be used for the informal FRG
  functions. Unit money for the formal newsletter,
  not for hot dogs.

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Cont

• FRG treasurer and alternate are the custodians of
  the FRG fund are personally responsible for
  the fund and liable for any loss or misuse of
  funds.
• The Commander is the approving authority for FRG
  outings and activities.
• The fund balance must not exceed 5,000 and
  donations cannot be more than 1,000.
• Monies in the account should be earmarked for
  specific purposes. Fundraising should not occur
  without a purpose.

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Establishing An FRG Fund Account

• Apply for Employee Identification Number through
  IRS using Form SS-4. The form can be downloaded
  from IRS website www.irs.gov then type SS-4 in
  Forms and publication finder search box. EIN is
  needed to avoid paying federal income tax and to
  open the account. Questionable as to whether one
  is needed due to the low income of informal
  organizations.
• The Fort Gordon Credit Union/Wachovia must be
  utilized as your banking institution. (Find
  out the charges per check, monthly fees if act
  drop below minimum and other charges
• Who can draw on the acct on behalf of FRG.
  Usually FRG leader, treasurer and alternate.
  Soldiers should not!

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• LUCK IS WHERE PREPARATION
• MEETS OPPORTUNITY