2014 Eastern Panhandle Combined Federal Campaign Application Process

1. 2014 Eastern Panhandle Combined Federal Campaign Application Process BreAnne Rugh brugh@uwayep.org (304) 263-0603 www.epcfc.org

2. What is CFC? The CFC is the only authorized solicitation of employees in the Federal workplace on behalf of charitable organizations local, national and international. The mission is to support and to promote philanthropy through a voluntary program that is employee-focused, cost-efficient and effective in providing Federal employees the opportunity to improve the quality of life for all. CFC is the world’s largest and most successful annual federal workplace fundraising drive with almost 200 campaigns throughout the country and overseas raising millions of dollars each year. Pledges made by Federal civilian, postal and military donors during the campaign seasons support eligible non-profit organizations that provide health and human service benefits throughout the world. Each local campaign is managed by a Local Federal Coordinating Committee (LFCC), which serves as a Board of Directors. The LFCC is made up of Federal employees and representative labor unions with Federal employees as members. The Eastern Panhandle CFC covers federal workers in Berkeley, Jefferson and Morgan counties in West Virginia.

3. Goal and Objectives Goal: Assists charities in understanding the 2014 process to complete and ensure accurate application are submitted on time. Objectives: • Review the 2014 process. • Review the 2014 application. • Review the 2014 schedule.

4. Eligibility 5 CFR part950.104(b)(3) LFCC Responsibilities: Determining the eligibility of local organizations that apply to participate in the local campaign. This is the exclusive responsibility of the LFCC and may not be delegated to the PCFO.

5. Rules 950.203 Public Accountability Standards (d) the required certification and documentation must have been completed and submitted prior to the application filing deadline. Application received that are incomplete may not be perfected during the appeal process described in §905.205. • Only you are responsible for correct application. • Documents that did not exist at the time of the application deadline will not be accepted during the appeals process. • The Local Application Committee will not call you in March if items are omitted.

6. Charity Responsibilities • Ensure that you comply with all eligibility requirements. • Ensure that your organization is not listed in other federations which constitutes a duplicate listing and a regulatory violation. • Ensure that your organization 501(c)3 status hasn’t been revoked by the IRS. • Submit an application will all the required attachments. • If application committee request supporting documentation, furnish it with the allotted. • Failure to respond constitutes ground for denial of local eligibility. • Ensure that Federal employee designations are honored.

7. CFC Application Cover Page Same organization name and EIN throughout all documents. Organization contact information must be physical mailing address. No P.O. Boxes Contact information may include P.O. Boxes. Include five-digit CFC Code, if organization was listed in previous campaign periods. If new leave blank. Contact person should be someone we can contact with good phone number and email address. (Should be the person that completed the application).

8. CFC Certification Statement #1 Local, Adjacent or Statewide Presence Local – Office in local campaign area is open a minimum of 15 hours per week is required. Must have a dedicated phone line (no cell phone number). Adjacent – Local presence whose geographic border touches the geographic border of another local campaign. Statewide – Providing services to 30% of target population or in 30% of state’s geography. 2013 Human Health and Welfare Services – calendar year not fiscal year.

9. 2013 Attachment A • Required schedule of services or benefits should specify: • WHO – indicate the number and type of individuals benefits. • WHAT – services or benefits provided or conducted must include details and specific services. Include quantity, value, scope an impact of services or benefits. • WHERE – specific locations where services or benefits were provided. • WHEN – dates on which service or benefits were provided or conducted during the 2013 calendar year. • Annual reports and brochures will not be accepted.

10. Example of Qualifying Services or Benefits in Attachment A

11. Example of Non-Qualifying Attachment A

12. CFC Certification Statement #1 Local, Adjacent or Statewide Presence Applicants should avoid……… - Generalized statements - Listing “offered” services - Listing location of member, affiliates or board members - Listing the residences of visitors to a facility - Listing services provide by the service recipient or other entity. - Fundraising activities as a service.

13. CFC Certification Statement #1 Local, Adjacent or Statewide Presence Factors LFCC will consider: • Nature and extent of the service, benefit, assistance or program activity. • Frequency, continuity, and duration of services. • Impact on, or benefit to beneficiaries • Number of beneficiaries.

14. CFC Certification Statement #2IRS Determination Letter Include a copy of the most recent IRS Determination letter as Attachment B: • Must be 501(c)3 tax-exempt organization. • Private foundation and units of government are not eligible. • Organizations need to make sure that their IRS status hasn’t been revoked. • Additional information for advanced ruling periods that expired on or before December 31, 2013. • If name on IRS letter or IRS Form 990 is different from applicant, official documentations from IRS or state government must be included. • Applicants whose current 501(c)3 status cannot be confirmed by the IRS will be denied participation. • OPM encourages organization to request current letters from IRS confirming the group’s tax-exempt status. This request can be made by contacting the IRS at (877)829-5500.

15. IRS DETERMINATION LETTER

16. AFFIRMATION LETTER

17. CFC Certification Affiliation Status Choose one of the three options listed below: • I certify that the organization named in this application is not part of an group exemption; • Name and EIN on IRS Determination will be unique. • I certify that the organization named in this application is a part of a group exemption; • Name may or may not be unique • Organizations using this certification will have an EIN different from the EIN on the national group exemption. • Must have certification from national organization dated on or after October 2013. • 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 organization CEO/President dated on or after October 1, 2013.

18. CFC Certification #3 Bona-fide Chapters and Affiliates of National Organization: • Include certification from CEO or equivalent (of parent organization) verifying that applicant is in good standing with national organization and is covered by the national’s 501(c)3 determination letter. • Must be in the form of a letter signed by the CEO or President of the organization affirming that they are a recognized affiliate of the parent organization. • If financial data for that member is included in the parent group’s audit, that must be acknowledged as well by the CEO.

19. CFC Certification Statement #4 I certify that the organization name in the application is a human health and welfare organization providing services, benefits or assistance to, or conducting activities affecting human health and welfare. • Refers back to Attachment A (2013 Human Health/Welfare service statement).

20. CFC Certification Statement #5 Choose one of the three options: • Revenues over $250,000 must meet both the following: • Accounts for its funds on the accrual basis in accordance with generally accepted accounting principles (GAAP); • Hass an annual audit by an independent certified public accountant in accordance with general accepted auditing standards (GAAS) • Submit audit for fiscal year ending June 30, 2012 or more recent. • If using national organization information provide certification from CEO of affiliated national organization for fiscal year ending June 30, 2012 or more recent. OR

21. CFC Certification Statement #5(cont.) • Revenues between $100,000 and $250,000: • Accounts for it funds on an accrual basis in accordance with generally accepted accounting principles (GAAP); and • Has an annual audit by an independent certified public accountant in accordance with generally accepted auditing standards (GAAS). • Include as Attachment C (Required)

22. CFC Certification Statement #5(cont.) • Audit must state that organization accounts for its funds in accordance with generally accepted accounting principles and that it was audited in accordance with generally accepted auditing standards. • “except for” statements may cause denial • Audit report must be signed and be on the audit firm’s letterhead. • The audit must cover the fiscal period ending no more than 18 months prior to January of the campaign year which the organization is applying (January 2014-18 months = June 30, 2012).

23. Sample Audit Report

24. CFC Certification Statement #5(cont.) I certify that the organization 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 not more then 18 months prior to January 2014 and has controls in place to ensure funds are properly accounted for and that it can provide accurate timely financial information to interested parties.

25. CFC Certification Statement #6 Two options: • I certify that the organization named in this application prepares and submits to the IRS a completed copy of the organization’s IRS Form 990. • Include a copy of the complete IRS Form 990 for period ending no later than 18 months prior to January 2014, including signatures in the box marked “Signature of Officer” as Attachment D. IRS Forms 990EZm 990PF and Comparable forms are not acceptable substitutes. • Schedule B (Schedule of Contributors) is not required, but all other supporting schedule are required. • Organization that file the IRS form electronically may submit a signed copy of the IRS Form 8879-EO or 8453-EO in lieu of a signature on the IRS form 990. The preparer’s signature alone is not sufficient. • The CFC will compare the number of voting members disclosed in Part I, Line 3 with the number of individuals that have the ‘individual trustee or director’ or ‘institutional trustee’ position selected in Part VII, Column C. If the number in Part I is more than the number in Part VII, the organization must provide an explanation for the difference. Failure to clarify the difference or to timely file an amended IRS Form 990 with the IRS may result in the denial of the application.

26. CFC Certification Statement #6

27. CFC Certification Statement #6

28. CFC Certification Statement #6(cont.) • If an organization filed an 990EZ, then it must ALSO provide that with a pro-forma 990 which is Page 1 Items A-M; (Part I Summary and Part II, Signature block), Lines 1-4 only; Part VII (Compensation section A only); Part VIII (Statement of Revenues); Part IX (Statement of Functional Expenses), and Part XII (Financial Statements and Reporting).

29. CFC Certification Statement #6(cont.) • I certify that the organization named in this application is not required to prepare and submit an IRS Form990 to the IRS. • Include a pro forma IRS Form 990 only for the period ending no later than 18 months prior to January 2014 as Attachment D. (IRS Form 990EZ, 990PF and comparable forms are not acceptable substitutes.)

30. CFC Certification Statement #7 • Calculation for AFR: 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), and divide the sum by Part VIII (Statement of Revenue), Line 12, Column A (Total Revenue). • No other methods may be used to calculate this percentage. • Charities which do not reflect administrative and fundraising expenses in the Statement of Functional Expenses of the IRS Form 990, resulting in 0% rate, but show such expenses on the audited financial statement will be denied unless the audited financial statements specifically state that the these services were donated.

31. CFC Certification Statement #8Board of Directors “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.” • Cases where 50% of the board received compensation and 50% of the board was not compensated will be denied, regardless of the amount of compensation.

32. Sale/Lease of CFC Contributor Information “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 their contribution. CFC regulations prohibit the sale or lease of this information.

33. CFC Certification Statement #10 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.

34. CFC Certification Statement #11 “I certify that the organization name in this application effectively uses the funds contributed by Federal personnel for its announced purposes.”

35. CFC Certification Statement #12Sanctions Compliance • Sanctions compliance certification required. • It is the intention OPM that applicants enhance their efforts to ensure that funds collected through the CFC not be used to finance the unlawful activities or those who engage in them, not that such efforts be diminished. • Further guidance in CFC Memorandum 2005-13 • The list of countries, entities, or individuals referenced in the certification can be found at www.treasurery.gov/ofac.

36. CFC Certification Statement #1325-word Statement • The statement should NOT repeat the organization’s name. • The organization must provide the legal name as registered with the IRS if the organization does business under name. • All organization must include their telephone number, EIN, taxonomy codes and administrative and fundraising rate will NOT count as part of the 25-word statement. • The statement can not be more then 25 words. • The statement should have your organization’s name, phone number, EIN and the statement. Then the administrative/fundraising rate and taxonomy codes.

37. ACCEPTABLE ATTACHMENT E

38. UNACCEPTABLE ATTACHMENT E

39. Certifying Official’s Signature • Certifying official does not have to be Executive Director or CEO, but must be individual in a position to verify the validity of the application and all attachments. • The certifying official’s signature MUST be original. • Automatic pens and/or signature stamps may not be used. Federation my provide photocopies. • Applicants MUST check the box next to each statement to demonstrate agreement to comply with the statement.

40. Charity Verification Process • ALL charities applying to CFC are submitted to OPM annually for IRS verification. • OPM will verify charity status with the IRS Business Master File, IRS Publication 78 and GuideStar. • All applicants must be submitted to OPM for tax-exempt validation. If the applicant is new, then OPM will assign a5-digit CFC Code, if it is verified. • If unverified, OPM will require organization to request currently dated verification letter from the IRS. • OPM may direct PCFO to freeze funds until verification is complete. • OPM may direct PCFO to distribute as undesignated any funds for organization determined not to be 501(c)3. • OPM will review charity lists annually for compliance. • Charities that do not pass OPM’s automated validation process must submit documentation to OPM manual verification.

41. Most Common Errors • Typographical errors in EIN provided. • Proper legal name not provided (insufficient DBA documentation). • Legal name is not identical to the legal name on file with IRS, including punctuation and spacing. • Legal name and EIN do not match. • Governmental entity without 501(c)3 recognition. • Charity moved (or address changed) and IRS was not notified. • Expired advance ruling. • Merged with another organization – EIN changed. • IRS Form 990 was marked “Final Return.” • Parent organization has not notified OPM that the application is tax-exempt or OPM has not received proper verification documents from the campaign.

42. Federation Responsibilities • Local federation must ensure that only those organizations that comply with all eligibility requirements are certified for participation. • Ensure that organization members are not listed in other federation or as local independents with constitutes an duplicate listing and a regulatory violation. • If the LFCC requests supporting documentation, it must be furnished. Failure to respond constitutes ground for denial of local eligibility. • Ensure, as fiscal agents, the federal employee designations are honored.

43. POINTS TO REMEMBER • Application must be complete • Appropriate boxes checked. • Forms are signed (application, 990 and audit letter). • Required attachments are provided. • No new material will be accepted in the appeal process.

44. CFCNCA Timeline

45. Eastern Panhandle CFCTimeline