[Code of Federal Regulations]
[Title 5, Volume 2, Parts 700 to 1199]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR950.301]

[Page 521-522]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (Continued)
 
PART 950--SOLICITATION OF FEDERAL CIVILIAN AND UNIFORMED SERVICE PERSONNEL FOR CONTRIBUTIONS TO PRIVATE VOLUNTARY ORGANIZATIONS--Table of Contents
 
                         Subpart C--Federations
 
Sec. 950.301  National federations eligibility.


    (a) The Director may recognize national federations that conform to 
the requirements and are eligible to receive designations. The Director 
may from time to time place a moratorium on the recognition of national 
federations.
    (b) By applying for inclusion in the CFC, federations consent to 
allow the Director complete access to it and its members' CFC books and 
records and to respond to requests for information by the Director.
    (c) An organization may apply to the Director for inclusion as a 
national federation to participate in the CFC if the applicant has, as 
members of its proposed federation, 15 or more charitable organizations 
that meet the eligibility criteria of Sec. 950.202 and Sec. 950.203. The 
initial year an organization applies for federation status, it must 
submit the applications of all its proposed member organizations in 
addition to the federation application. Federations must re-establish 
eligibility each year, however, the applications of its member 
organizations need not accompany the annual federation application once 
an organization has obtained federation status, unless requested by the 
Director.
    (d) After an organization has been granted federation status, it may 
certify that its member organizations meet all eligibility criteria of 
Sec. 950.202 and Sec. 950.203 to be included on the national list. 
Federation status in a prior campaign is not a guarantee of federation 
status in a subsequent campaign. Failure to meet minimum federation 
eligibility requirements shall not be deemed to be a decertification 
subject to a hearing on the record.
    (e) An applicant for national federation status must annually 
certify and/or demonstrate:
    (1) That all member organizations seeking participation in the CFC 
are qualified for inclusion on the national list. Applicants must 
provide a complete list of those member organizations it certified.
    (2) That its financial records, practices and procedures conform to 
generally accepted accounting principles and that it is annually audited 
by an independent certified public accountant in accordance with 
generally accepted auditing standards. A copy of the audit must be 
included with the application. The audit must verify that the federation 
is honoring designations made to each member organization. The audit 
requirement is waived for newly created federations operating for less 
than a year.
    (3) That it does not employ in its CFC operations the services of 
private consultants, consulting firms, advertising agencies or similar 
business organizations to perform its policy-making or decision-making 
functions in the CFC. It may, however, contract with entities or 
individuals such as banks, accountants, lawyers, and other vendors of 
goods and/or services to assist in accomplishing its administrative 
tasks.
    (f) The Director will notify a federation if it is determined that 
the federation does not meet the eligibility requirements of this 
section. A federation may appeal an adverse eligibility decision in 
accordance with Sec. 950.205.

[[Page 522]]

    (g) The Director may waive any eligibility criteria for federation 
status if it is determined that such a waiver will be in the best 
interest of the CFC.
    (h) Two organizations--American Red Cross and United Service 
Organization--are exempt from the 15-member requirement of 
Sec. 950.301(c).