FAMILY READINESS GROUPS: LEGAL AND FINANCIAL ISSUES

1. FAMILY READINESS GROUPS: LEGAL AND FINANCIAL ISSUES COL Michael J. McKenna Staff Judge Advocate Joint Force Headquarters Wisconsin 10 April 2010

2. FRG…Formal Definition Definition. An officially command-sponsored organization of family members, volunteers and soldiers belonging to a unit, that together provide an avenue of mutual support and assistance, and a network of communications among family members, the chain of command and community resources.Goal. One major goal of the FRG is to help family members feel that they are an integral part of the Army family. 2

3. Mission Statement from AR 608-1 FAMILY READINESS GROUPS Mission statement. FRGS will provide mutual support and assistance, a network of communications among family members, the chain of command and community resources. FRGs wil assist unit commanders in meeting military and personal deployment preparedness and enhance the family readiness of the unit’s soldiers and families. AR 608-1 App. J-1 3

4. FRG Mission An extension of the unit providing command information Mutual support between command and FRG membership Advocate efficient use of community resources Help families solve problems at the lowest level 4

5. AR 608-1, § J-2.c. FRG…What kind of entity? FRGs are official DA programs FRGs are subject to statutes & regulations on official activities Includes JER 5

6. AR 608-1, § J-8 As a DA activity, FRGs MAY NOT: - Engage in External Fundraising - Solicit Gifts & Donations In response to an inquiry, may inform potential donors of the needs of the Army in relation to assisting families.  6

7. AR 608-1, § J-7.e. FRGs are not established to: 1. Raise Funds 2. Solicit Donations, or 3. Manage large sums of money FRGs not equipped to: 1. Manage tax & 2. Accounting issues 7

8. FRGs-Resources 1. Can utilize government resources for their mission essential activities. 2. Can utilize volunteer efforts. 3. Can utilize “informal” funds with limitations. 8

9. AR 608-1, § J-7.e.FRG “informal” fund limitations May raise no more than $10,000 in one calendar year May not accept more than $1,000 per donation Funds must be earmarked for expenditure FRG must submit a written fundraising request to the Commander A fundraising request must specifically itemize how funds will be used Commander must approve fundraising 9

10. Funds Management Informal Fund is: Benefit of all FRG members IS NOT Not designed to generate profits Not a cup and flower fund – not used to buy baby gifts, wedding gifts, sympathy gifts Is not a Private Organization Is not for the purpose of fund raising Is not to be used for military activities 10

11. Authorized Use of FRG “informal” funds Create FRG newsletters that contain: 1. Predominantly unofficial information 2. Purely social activities Examples: - Parties - Social outings - Volunteer recognition - Picnics 11

12. Unauthorized Use of FRG Funds CAN NOT: Augmenting unit informal funds Purchasing items or services that can be paid for with appropriated funds Purchasing traditional military gifts Funding the unit ball 12

13. FRG Informal Funds Management Commanders must appoint a treasurer Must be different person than FRG leader Cannot be a military member Treasurer must Submit monthly report to commander Account for all funds in and out of the account 13

14. Raffles Raffles are Gambling if consisting of: Consideration A Game of Chance Offering of a Prize 14

15. Raffles JER § 2-302(b) prohibits gambling on federal property & requires compliance with state law Wis. Stat. § 563.90 License is required to conduct a raffle WING is not a qualifying agency eligible to obtain gambling license Raffles are a form of gambling Gambling is prohibited on state property 15

16. Authorized Fundraisers Fundraising by organizations composed primarily of DOD or DA employees and their dependents when fundraising among their own members or dependants for the benefit of their own welfare funds. Fundraising must be approved by the Commander after consultation with the ethics counselor. JER § 3-210(a)(6) 16

17. Fundraising Fundraising must be for the organization’s informal fund Fundraising not allowed for: 1. private charity 2. military member 3. similar cause Commander approval required 17

18. Fundraising in a Private Capacity FRG members in an off-duty status & in a private capacity may fundraise for private causes or non-Federal entities 18

19. Types of Volunteers Statutory Volunteers; 18 U.S.C. § 1588(a)(3)(A) – donate services to the Guard FRG however receive reimbursement for incidental expenses Travel pay for training events Child Care reimbursement while conducting training or preparation for unit events Telephone reimbursement for calling tree responsibilities 19

20. Types of Volunteers Statutory Volunteers May not receive reimbursement if they are participating in a unit fund raising event If you are volunteering for a private organization, even if the event is in support of a guard unit – you may not claim/ or receive reimbursement for this event 20

21. Types of Volunteers Gratuitous Service Provide service without the expectation of receiving any compensation or reimbursement Will agree in writing to waive any and all claims against the Government that may result during their volunteer time 21

22. FRG • Governed by service regulations. • Receives official support and endorsement by the command. • Receives appropriated Gov’t funding. • FRG volunteers are “statutory volunteers” under 10 U.S.C. § 1588. • Statutory volunteers are deemed Gov’t employees

23. Fundraising…key issues • Fundraising is like alcohol! • Almost everyone likes it. • Some people never get enough. • It is generally legal but presents many problems. • It causes people to do things to their co-workers or friends that they would not otherwise do.

24. Fundraising • An FRG can not supplement its official funding. • Article I, Section 9, Clause 7, U.S. Constitution: • “No money shall be drawn from the treasury except in consequence of appropriations made by law.” • 31 U.S.C. § 3302(b) – Miscellaneous Receipts • Bottom Line – you can only spend what Congress gave you! • The federal Gov’t does not beg for money!

25. Fundraising • FRG (government) can accept certain things: • Volunteer services under 10 U.S.C. § 1588. • Gifts, with proper approval and statutory authority. • Money – usually not. Even if yes, must deposit in the U.S. Treasury.

26. Unofficial FRG • Technically not an FRG. • Is considered a private organization or “NFE.” • Consists of . . . anybody. • Privately funded – no government funds. • Gets no official support or endorsement.

27. Unofficial FRGs • Unofficial FRGs incorrectly perceive themselves as an official arm of the WIARNG. • Unofficial FRGs request official support from the WIARNG: • Equipment • Personnel • Facilities • Official endorsement and support • Special access to WING members

28. Fundraising in a Personal Capacity • A DoD employee may engage in fundraising in a personal capacity. • Prohibitions-the employee cannot: • Personally solicit funds or other support from subordinates, • Personally solicit funds or other support from DoD contractors, OR • Use (or permit the use of) his or her government title or position or authority to further the fundraising effort (but using or allowing others to use your military rank and branch of service is permissible). 5 CFR 2635.808(c)

29. Summary • FRG may consist of 2 groups: - Official FRG - Unofficial FRG • Rules for two groups are vastly different. • Need to remain mindful about what group is doing what when. • Official FRG can’t fundraise or supplement government funds. • Unofficial FRG can do what it wants but official support is limited.

30. Questions? 30