2015 Local Charity Application Training March 2015

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


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:


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.


• 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

http://www.irs.gov/Charities-&-Non-Profits

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)


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




Item #6 cont


Common Problems on Item #6 (cont)


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

http://www.treas.gov/ofac

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:


• 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!