2012 Charity ApplicationTraining

March 2012

• 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 over 105 CFCs throughout the U.S., Puerto Rico, the U.S. Virgin Islands, and overseas military bases.

• Since inception, in excess of $7 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 beginning March 1st

Over $1.72 Million Pledged in 2011 Campaign

More than 2,600 Charities In the 2011 Charity List

148 Local Charities In the 2011 Charity List

Importance of Quality

• Legible• Easy to read• Attachments tabbed• Complete

Front Page

Organization: Employer Identification Number (EIN): __ __ - __ __ __ __ __ __ __

5-Digit CFC Number (If a previous participant): __ __ __ __ __Organization Address:

(Post Office Box addresses are not accepted and may result in automatic disqualification)

Check this box if the above address is different from the address

submitted with the 2011 CFC application:

Telephone (_____)

Contact Person:

Contact Title:

Front Page (cont)

Contact Address: (If different from the above address – Post Office Boxes are acceptable.

All CFC correspondence will be sent to this address).Contact Telephone:

Contact E-Mail Address:

Website Address (required, if available):

Disbursement Address: (This is the address where paper checks will be sent.)

Pg 1 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

Item #1 (cont)

Place a check in the one appropriate box:

I certify that the organization named in the application has a substantial local presence in the geographical area covered by the local campaign.

--OR –

I certify that the applicant organization named in the application has a substantial local presence in the geographical area covered by an adjacent local campaign.

--OR –

Item #1 (cont)

I certify that the organization named in the application has a substantial statewide presence.

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:

Item #1 (cont)

Local & Adjacency Presence Requires:

Attachment A

• Supporting statements and/or documentation• Description of actual services, benefits, assistance, or program activities in CALENDAR YEAR 2011• How services, benefits, assistance, programs affect human health and welfare to target population

NOTE: Statewide Presence: Must show LFCC that provided real services, benefits, assistance to 30% of New Mexico’s geographic boundaries or 30% of the state’s population.

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 • Assuming it is better to be “statewide” • Not making a strong case of services provided in

calendar year 2011 on ATTACHMENT A• Writing “2010” instead of “2011” on Attachment A• Giving fiscal year statistics instead of calendar year

stats• Give examples of HOW services provided helpe• Embrace 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.

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

www.irs.gov/taxstats/charitablestats/article/0,,id=97186,00.html

• If group status – list of subordinates• If bonafide chapter of national organization – letter from

CEO • Name on IRS Letter must match Form 990 and audit• If name doesn’t match, letter authorizing name change

from state or federal government entity

Item #3Place a check in the one appropriate box:

I certify that the organization named in this application is not part of a group exemption.

-- OR –

I certify that the organization named in this application is part of a group exemption.

-- OR –

I certify that the organization named in this application is a bona-fide chapter or affiliate that operates under a national organization’s single corporation tax-exemption

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 2011 are reflected in ATTACHMENT A.

Common Problems: Not making a strong case of services provided in calendar year 2011 (See #1)

Item #5

Place a check in the one appropriate box:

I certify that the organization named in this application reports total revenue of $250,000 or more on its IRS Form 990 (or pro forma IRS Form 990) covering a period ending not more than 18 months prior to January 2012 and meets both of the following two conditions:

• Accounts for its funds on the accrual basis in accordance with generally accepted accounting principles (GAAP); and

• Has an audit of its fiscal operations completed annually by an independent certified public accountant in accordance with generally accepted auditing standards (GAAS). (Include as ATTACHMENT C a copy of the auditor’s report and the complete audited financial statements for a fiscal period ending not more than 18 months prior to January 2012.)

--OR--

Item #5 (cont) I certify that the organization named in this application reports total revenue

of at least $100,000 but less than $250,000 on its IRS Form 990 (or pro forma IRS Form 990) covering a period ending not more than 18 months prior to January 2012 and meets both of the following two conditions:

• Accounts for its funds on the accrual basis in accordance with generally accepted accounting principles (GAAP); and

• Has an audit of its fiscal operations completed annually by an independent certified public accountant in accordance with generally accepted auditing standards (GAAS).

--OR— I certify that the organization named 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 ending not more than 18 months prior to January 2012 and has controls in place to ensure funds are properly accounted for and that it can provide accurate timely financial information to interested parties.

Item #5 (cont)

• Audit must cover the fiscal period ending on or after June 30, 2010 (18 months prior to January 2012)

• 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

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 2012)

-- 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 2012. 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)

LFCC will confirm following information:1. Signature in “Signature of Officer” 2. IRS Forms 990 EX, 990 PF, and comparable forms are not acceptable

substitutes3. Number of voting members disclosed in Part I, Line 3 matches the number

of individuals that have the “individual trustee or director” or “institutional trustee” position selected in Part VII, Column C

4. If the number in Part I is more than Part VII, the charity must provide a written explanation

5. 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

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 pages on the 2009/2010 IRS Form 990: Part I (Summary and Part II, Signature Block) Part VII (Compensation sections A and B) Part VIII (Statement of Revenues) Part IX (Statement of Functional Expenses) Part XII (Financial Statements and Reporting)

Common Problems on Item #6

Page 7, IRS Form 990

Common Problems on Item #6

Page 1, IRS Form 990

Common Problems on Item #6 (cont)

Page 12, IRS Form 990

Common Problems on Item #6 (cont)

Page 1, 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 #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: _______ _______ . _______%

Taxonomy Codes (up to three): _______ _______ _______

25-word statement:

Common Problems of 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

• The Certifying official’s signature MUST be original • Automatic pens and/or signature stamps may not be used• Applicants must check the box next to each statement to demonstrate compliance with each certification statement

Questions ????

Thank you!