[Code of Federal Regulations]
[Title 5, Volume 2]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR950.303]

[Page 619-620]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (CONTINUED)
 
PART 950_SOLICITATION OF FEDERAL CIVILIAN AND UNIFORMED SERVICE PERSONNEL FOR 
 
                          Subpart C_Federations
 
Sec.  950.303  Local federations eligibility.

    (a) LFCC's must approve local federations that meet the applicable 
requirements, except that in order to determine whether the LFCC must 
recognize a local federation, the LFCC may request evidence of 
corrective action regarding any prior violation of regulation or 
directive, sanction, or penalty, as appropriate. A local federation that 
has been notified that it will not be included on the Local part of the 
Charity List because of failure to correct a prior violation may appeal 
the LFCC's decision to the Director in accordance with Sec.  950.205(b). 
The Director retains the ultimate authority to decide whether the local 
federation has demonstrated, to the Director's satisfaction, that the 
local federation has taken appropriate corrective action. Failure to 
demonstrate satisfactory corrective action or to respond to a request by 
the LFCC or Director for information within 10 business days of the date 
of the request may result in a determination that the local federation 
will not be included in the Local part of the Charity List.
    (b) By applying for inclusion in the CFC, federations consent to 
allow the LFCC and Director complete access to it and its members' CFC 
books and records and to respond to requests for information by the LFCC 
and the Director.
    (c) An organization may apply to the LFCC for inclusion as a local 
federation to participate in the CFC if the applicant has as members of 
the proposed federation 15 or more charitable organizations, in addition 
to the federation itself, that meet the eligibility criteria of 
Sec. Sec.  950.202, 950.203 and 950.204. The initial year an 
organization applies for federation status, it must submit to the LFCC 
applications of all its proposed member organizations in addition to the 
federation application. A federation must re-establish eligibility each 
year, however only the applications of its new and former members that 
were not within the federation, as a CFC participant, in the previous

[[Page 620]]

year's campaign need accompany the annual federation application once an 
organization has obtained federation status, unless additional member 
applications are requested by the LFCC.
    (d) After an organization has been granted federation status, it may 
certify that its member organizations meet all eligibility criteria of 
Sec. Sec.  950.202, 950.203, and 950.204 to be included on the Local 
List. While deference should be given to federation certifications, the 
LFCC, during the review process, may request independent evidence of 
individual member organization's eligibility. 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 withdrawal of federation status subject to a 
hearing on the record.
    (e) An applicant for local federation status must certify and/or 
demonstrate:
    (1) That all member organizations seeking participation in the CFC 
are qualified for inclusion on the Local List and provide a complete 
list of those member organizations it certified.
    (2) That it meets the eligibility requirements contained in Sec.  
950.204 (including eligibility requirements and public accountability 
standards of Sec. Sec.  950.202 and 950.203 that are incorporated by 
reference). The federation can demonstrate that it has met the 
eligibility requirement in Sec.  950.204(b)(1) either through its own 
services, benefits, assistance or program activities or through its 15 
members' activities.
    (i) The federation must complete the certification set forth at 
Sec.  950.203(a)(2) without regard to the amount of revenue reported on 
its IRS Form 990 and must provide a copy of its audited financial 
statements. The audited financial statements provided must verify that 
the federation is honoring designations made to each member organization 
by distributing a proportionate share of receipts based on donor 
designations to each member. The audit requirement is waived for newly 
created federations operating for less than a year as determined from 
the date of its IRS tax-exemption letter to the closing date of the CFC 
application period.
    (ii) The federation must provide a listing of its board of 
directors, beginning and ending dates of each member's current term of 
office, and the board's meeting dates and locations for the year prior 
to the year of the campaign for which the organization is applying.
    (iii) The federation must certify that it prepares and makes 
available to the public, upon request, an annual report that includes a 
full description of the organization's activities and supporting 
services and identifies its directors and chief administrative 
personnel. The federation must provide a copy of its most recently 
completed annual report covering the fiscal year ending not more than 18 
months prior to January of the campaign year to which the federation is 
applying or the preceding calendar year. The annual report must also 
include an accurate description of the federation's membership dues and/
or service charges received by the federation from the charitable 
organizations participating as members. The information must clearly 
present the amounts raised, the sources of contributions, the cost of 
fundraising, and how costs are recovered from donations.
    (3) That is does not employ, in its CFC operations, the services of 
private consultants, consulting firms, advertising agencies or similar 
business organizations to perform the 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 LFCC 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.
    (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.

[60 FR 57890, Nov. 24, 1995, as amended at 71 FR 67287, Nov. 20, 2006]

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