2015 Local Charity ApplicationTraining
March 2015
• 1961 – President Kennedy -- Executive Order• Why? Federal employees being asked by many charities
regularly• Only authorized solicitation of Federal employees• World’s largest• Governed by Title 5, Part 950 of the code of Federal
Regulations• Memoranda & Guidelines
What Is CFC?
• Today, there are approximately 150 CFCs throughout the U.S., Puerto Rico, the U.S. Virgin Islands, and overseas military bases.
• Since inception, in excess of $7.6 billion has been raised.
What Is CFC?
Campaigning for Charities
• The federal government cannot raise money for charities• Local Federal Coordinating Committee (LFCC)• Memo of Agreement• Managing organization since March 1, 2011
Over $2.2 Million Pledged in 2014 Campaign
More than 20,000 Charities In the 2014 Universal Giving List
CFC Timelines
• April 1, 2015 -- Local Charity Applications Due • April 30, 2015 – Notification of LFCC’s Decision• June 4, 2015 -- Deadline for LFCC’s Appeal Decision• September-December 15, 2015 – Campaign Solicitation• September 2015 – Speakers Bureau Sign-Up • March 15, 2016 – Information about Designations • April 1, 2016 – First Disbursement to Charities• March 31, 2017 – Last Disbursement to Charities
Importance of Quality
• Legible• Easy to read• Attachments tabbed• Complete
Key Application Documents
Att. BIRS
Determination Letter
Att. C (if appl.) Audited
Financial Statements
Att. DIRS Form 990
(same period as audit)
Att. A 2014 Service
Description
Att. E 25-Word Statement
Doc
2015 CFC Application
Certifications
CFC Application Cover Page
• Name of the organization must be the one on the IRS master file
• Organization address must be a physical mailing address. No P.O. Boxes
• Contact info may include P.O. Boxes
• EFT – All Campaigns
Cover Page Common Problems
• Not providing DBA documentation• Not updating CFC with contact information• Using a post office box instead of a physical
address as the official charity’s address
All charities must prove “Local Presence” to be included in the Desert Southwest CFC.
• Local – Office in local campaign area open 15 hours per week with a dedicated phone line
CFC Certification Statement #1Local, Adjacent, or Statewide Presence
CFC Certification Statement #1Local, Adjacent, or Statewide Presence
Local Presence Requires:
Service Office Address (if different from Organization Address on previous page)
Hours of Operation per Each Day of the Week (Example: Monday-Friday, 9AM-5PM; Saturday, 10AM-3PM; Sunday, Closed)
Organization’s Dedicated Phone Number:
County and State Where Office is Located:
CFC Certification Statement #1Local, Adjacent, or Statewide Presence
Attachment A
• Supporting statements and/or documentation• Description of actual services, benefits, assistance, or program activities in CALENDAR YEAR 2014• How services, benefits, assistance, programs affect human health and welfare to target population
•WHO received the service, benefit, or assistance
•WHAT the service, benefit, or assistance was
•WHEN it was delivered
•WHERE it was delivered
Looking For …..
– Generalized statements– Listing “offered” services– Listing location of members, affiliates, or board
members– Listing the residences of visitors to a facility– Listing services provided by the service recipient or
other entity– Fundraising activities as a service
Applicants Should Avoid
Factors LFCC May Consider
• Nature and extent of the service, benefit, assistance, or program activity
• Frequency, continuity, and duration
• Impact on, or benefit to, beneficiaries
• Number of beneficiaries
Common Problems on Item #1
• Providing city not county • Not making a strong case of services provided in
calendar year 2014 on ATTACHMENT A• Writing “2013” instead of “2014” on Attachment A• Giving fiscal year statistics instead of calendar year
stats• Not giving examples of HOW services provided
helped• Not embracing statistics
Item #2
I certify that the Internal Revenue Service (IRS) recognizes the organization named in this application 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). Include as ATTACHMENT B a copy of the most recent IRS determination letter.
Statement #2 & #3Tax-Exempt Status
501(c)(3)Tax-
Exemption
Not part of group exemption Has own IRS letter
Part of Group ExemptionName may not be uniqueEIN listed in IRS BMF
Chapter/AffiliateLetter from CEO Name and EIN may be same as
the parent org.
Common Problems on Item #2
• IRS Letter outdated OR there are problems that the charity is not aware of
• Check IRS online to see if in good standing by going to www.irs.gov/Charities-&-Non-Profits. Select “EO Select Check”
• If group status – list of subordinates• If bonafide chapter of national organization – letter from
CEO dated on or after 10/1/14• Name on IRS Letter must match Form 990 and audit• If name doesn’t match, letter authorizing “Doing
Business As” name from state or federal government entity
Common Problem on Item #3
• Certify not part of group exemption, but marked as a group exemption on IRS Form 990
Item #4
I certify that the organization named in this application is a human health and welfare organization providing services, benefits, or assistance to, or conducting activities affecting human health and welfare. The services, benefits, assistance, or program activities affecting human health and welfare provided in calendar year 2014 are reflected in ATTACHMENT A.
Common Problems: Not making a strong case of services provided in calendar year 2014 (See #1)
Item #5 – Audited Financial Statements
Total Revenue Per 990
>$250k $100-250k
<$100k
Accrual Accounting (GAAP)
Audited Annually
Submit Audit
Item #5 (cont)
• Audit must cover the fiscal period ending on or after June 30, 2013 (18 months prior to January 2015)
• Audit must state 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
Common Problems on #5
Page 9, IRS Form 990
Common Problems on #5 (cont)
Page 12, IRS Form 990
Item #6 IRS Form 990 vs Pro Forma 990
IRS Form 990• Filed with IRS• Match FY of Audit• FY ended on or after
6/30/13• Officer’s Signature or
E-File signed form• All sections
Pro Forma 990•Download 990 from IRS website (www.irs.gov)•FY ended on or after 6/30/13•Officer’s Signature•Parts I (items A-M, Summary, & Lines 1-4 only), II, VII, VIII, IX, and XII only
Check the one appropriate box:
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 as ATTACHMENT D a copy of the complete IRS Form 990 for a period not more than 18 months prior to January 2015)
-- OR – I certify that the organization named in this application is not required to
prepare and submit an IRS Form 990 to the IRS. (Include as ATTACHMENT D a pro forma IRS Form 990 for a period ending not more than 18 months prior to January 2015. See application instructions for pro forma IRS Form 990 requirements. IRS Forms 990 EZ, 990PF, and comparable forms are not acceptable substitutes.)
Item #6 (cont)
Item #6 (cont)
LFCC will confirm following information:1. Signature in “Signature of Officer” & Date (or e-file proof) 2. IRS Forms 990 EX, 990 PF, and comparable forms are not acceptable
substitutes3. Number of voting members disclosed in Part I, Line 3 equal to or less than
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 Part VII, the charity must provide a written explanation
• Failure to clarify the difference or to timely file an amended IRS Form 990 with the IRS may result in a denial of the CFC application
4. Part XII – Method of Accounting is “Accrual” for charities with revenues of $100,000+
Item #6
• IRS changed the threshold that a charity can use 990 EZ• If charity submitted 990 EZ to IRS, CFC will still need the IRS Pro Forma
990. This includes the following sections on the IRS Form 990: Page 1, Items A-M Part I (Summary and Part II, Signature Block), Lines 1-4 only Part VII (Compensation sections A only) Part VIII (Statement of Revenues) Part IX (Statement of Functional Expenses) Part XII (Financial Statements and Reporting)
Item #6 cont
Page 1, IRS Form 990
Common Problems on Item #6
Page 1, IRS Form 990
Item #6 cont
Page 7, IRS Form 990
Common Problems on Item #6 (cont)
Page 12, IRS Form 990
Item #7
I certify that the administrative and fundraising rate for the organization named in this application is ___ ___ . ___ %. This percentage is computed from the IRS Form 990 submitted with this application.
Common Problems: Not rounding to the nearest tenth of percent. For example: 10.56 = 10.6% 10.52 = 10.5%
Item #7 (cont)IRS Form 990Page 10 – Line 25, Add Column C to
Column D
Add Line 25 Column A to Column D, Divide sum by Line 12 Column A($15,000 + $15,000=$30,000. $30,000/$500,000 =
Page 9 – Divide sum of Line 25 Column A + Column D to Line 12, Column A
6.0%
Item #8
I certify an active and responsible governing body, whose members have no material conflict of interest and a majority of whom serves without compensation, directs the organization named in this application.
Item #8 (cont)
Item #8 (cont)
Item #9
I certify the organization named in this application prohibits the sale or lease of CFC contributor lists.
Item #10
I certify the organization named in this application conducts publicity and promotional activities based upon its actual program and operations, and that these activities are truthful and non-deceptive, include all material facts, and make no exaggerated or misleading claims.
Item #11
I certify that the organization named in this application effectively uses the funds contributed for its announced purposes.
Item #12
• Sanctions compliance certification is required• Wording in CFC application provided by OPM must be used• The list of countries, entities, or individuals referenced in the certification can be found at www.treas.gov/ofac. • Guidance in CFC Memorandum 2005-13• Charity’s responsibility to notify OPM’s CFC Operations immediately if, at any time, the circumstances of this certification changes
Attachment EOrganization’s Legal Name:
Organization’s DBA:
Telephone number: (_____)
Website (if applicable):
IRS Employer Identification Number:
Administrative & Fundraising Rate: _______ _______ . _______%
CFC #: ______________
Taxonomy Codes (up to three): _______ _______ _______
25-word statement:
Common Problems on Item #13
• Did not use the Attachment E provided• More than 25 words• Website not included• Administrative & Fundraising Rate is not the same as on Item #7• No taxonomy code(s) listed
Certifying Official
• Applicants must check the box next to each statement to demonstrate compliance with each certification statement
Questions ????
Thank you!