1. 2015 Potomac CFC Application Training January 9, 2015

2. Today’s Agenda Information about the Combined Federal Campaign and the Potomac CFC Application Information Application Instructions Questions and Answers 2

3. C ombined Federal Campaign Only authorized solicitation of federal civilian employees and military service members in the workplace. Administered and regulated by the Office of Personnel Management (OPM). For more information: www.opm.gov/cfcwww.opm.gov/cfc Organizations must apply annually for participation in the CFC. 3

4. Combined Federal Campaign CFC is divided into geographic regions and is a separately run campaign in each region. Potomac CFC includes federal facilities (civilian and military) located in the counties of King George, Essex, King and Queen, Lancaster, Northumberland, Richmond, Westmoreland, Caroline, Stafford, Spotsylvania, Fauquier, Culpeper, Orange, Rappahannock and Madison and portions of Prince William and the City of Fredericksburg. 4

5. 5 Potomac CFC 0898

6. Local Management of Potomac CFC Potomac CFC is managed by the Local Federal Coordinating Committee (LFCC). A group of federal military and civilian personnel. Decision-making group for the Potomac CFC. Approve/deny applications after federal employee review. The Principal Combined Fund Organization or PCFO is the fiscal agent for the Potomac CFC. Rappahannock United Way is the PCFO for the Potomac CFC. Has been PCFO for 34 campaign years. 6

7. Application Information Strict Deadlines – February 13, 2015 at 4:30 p.m. - For both federations and independent charities. Make sure application is completed in its entirety. Must be submitted in hard copy. FEDERATIONS – email attachment A (spreadsheet). The Application Review Committee (federal employees) review all applications and make recommendations to LFCC. LFCC reviews applications and accepts/denies Can make denial appeal to local LFCC; then to OPM. 7

8. Application Instructions Please read all instructions before you begin! There has been substantial changes to application this year. Organizations must have a local presence in order to be in a CFC Campaign. Read and answer all questions carefully. It may be helpful to complete/compile attachments before answering the application questions. Please include EFT information (electronic funds transfer), if you have utilize EFT. See sample Completeness Review and Application Review Forms (in packet). 8

9. Application Cover Sheet Provide Official Name as listed by IRS on IRS Determination Letter. Include DBA, if there is one. Must have back-up info for DBA (official). Cannot use PO Box as Organization Address. Disbursement Address is only needed if you are receiving paper checks and address is different than organization address. Please include EFT Information, if applicable. 9

10. Certifications 1 - 3 Certification #1 – This year you must have a local presence/address and be open at least 15 hours per week with a dedicated phone number. There is no Adjacent or Statewide certification this year. Local – services within boundaries of Potomac CFC. Certification #2 – Are you a 501 (c) (3)? Must attach most recent IRS Determination Letter. Certification #3 – Group exemption information. Only check 1 box. If you are a group exemption, you must have group exemption #. Include a letter from national organization that your chapter is in good standing. If you are a Catholic organization, please include a copy of the page from Catholic Directory where Catholic Charity can be found – circle the agency. 10

11. Certifications 4 - 5 Certification #4 - Are you a human health and welfare organization providing services benefits or assistance to ….human health and welfare? If animal charity - must make a link between animal welfare and human welfare. Attachment A – specifics for 2014 only. Certification #5 – Revenue Reporting and Supporting Documents. $250,000 and over Must include audited financials dated no later than June 30, 2013. Must account for funds on the accrual basis. At least $100,000 but less than $250,000. Must have audited financials (but do not have to be included with application). Must account for funds on the accrual basis. Under $100,000. May use cash or accrual basis of accounting. Do not have to have audited financials. 11

12. Certifications 6 - 7 Certification #6 – Preparation of IRS Form 990. Required to submit IRS Form 990 Must attach copy Cannot be dated prior to June 30, 2013 If not required to submit IRS Form 990, you must: Must provide Proforma 990 Cannot accept 990 EZ, 990PF or others. Must have these parts: Page 1 Items A – M; Part I Lines 1-4 only; Part II signature; Part VII compensation section A only; Part VII comp section A; Part IX statement of functional expenses, and; Part XII financial statements and reporting. Cannot be dated prior to June 30, 2013. In Part VII, include compensation amounts or zeros in Columns D, E and F. Or check box indicating that no compensation is given. Certification #7 - Calculate AFR From Form 990 or Proforma Parts VII and IX. Please check the math! Report in % to one decimal - Example 10.5%. Can be denied if AFR is 0.0% and show expenses on audited financials. 12

13. Certifications 8 - 12 Certification #8 - Do you have an active and responsible governing body? Are they compensated? More than 50% of board must not be compensated. If it is 50/50, application will be denied. Must use director/trustee as a member of governing body with voting rights. Number of voting members on Page 1, Line 3 of Form 990 must be equal to or less than the number listed as director/trustee in Part VII. Certification #9 – Will not sell or lease the CFC contributor/donor list. Certification #10 – Conducts publicity and promotional activities based upon actual programs, are truthful and non-deceptive. Don’t mislead or exaggerate! Certification #11 – Use funds for the announced purpose. Certification #12 – Compliance. 13

14. Certification 13 and Signature Certification #13 – Attachment E 25 word statement with taxonomy codes – ONLY 25 WORDS. Codes are listed in the instructions. Certifying Official Signature of the person who is responsible for the organization. Can affirm that all statements are accurate. DON’T FORGET TO SIGN THE APPLICATION! 14

15. Attachment A Local Independent Describe actual services and programs provided in calendar year 2014 only. Who do you serve? What services/programs do you provide? When are the services delivered? Where are the services delivered? How do your services benefit human health and welfare? How many do you serve? 15

16. Attachment A Instructions (continued) Be specific and detailed. Describe your programs and services in your own words and include impact information. – How many served and what was impact. Don’t cut and paste from past applications or your annual report or newsletters. 16

17. Sample Attachment A Chart Form Program/Service Title Brief Description of Program/Service Target PopulationNumber of Beneficiaries Date(s)Human Health and Welfare Benefit Happy Time After- school Youth Program 100 Maple Ave. Anywhere, VA 22182 Maple County, VA 2:00 -5:30 p.m. Monday-Friday (123)456-7890 Provides supervision for youth after school. Homework assistance, snack, recreational activities Children ages 5-15150September 1 – June 15, 2014 Provides a safe environment for children after school which promotes school readiness, healthy habits and physical well-being. Pre-School Enrichment Program 100 Maple Ave. Anywhere, VA 22182 Maple County, VA 9:00 a.m. – 5:30 p.m. Monday-Friday (123)456-7890 Provides school readiness and day care services for children 2-5 years of age. Certified child care, hot meals, recreational and educational activities. Children ages 2-5100January 2, 2014 – December 31, 2014 Provides a safe child care environment which promotes educational readiness and healthy child care. 17

18. Attachment B Local Independent Attach a copy of your organization’s most recent IRS determination letter. Confirm EIN is valid and matches EIN on 990 and application 501(c) (3) status will be verified through the IRS. If 501(c) (3) cannot be confirmed by the IRS, applicant will be denied. Verify your status prior to submitting your application (Call IRS - 877-829-5500). If organization is using something other than legal name, official DBA paperwork in your home state or jurisdiction is required. We must have a copy in the application packet or the application will be denied. 18

19. Attachment C Local Independent Audited Financial Statements Required for organizations with $250,000 or more in annual revenue. Must be signed, dated and on the audit firm’s letterhead. If revenue is at least $100,000 but less than $250,000 must certify (#5) that organization has an audit completed annually by independent CPA but do not have to provide it in the packet. Will not have attachment C in application if under $250,000 but must have it available if we/donor asks for it. If revenue is less than $100,000 must certify (#5) that organization has financial controls in place. Will not have attachment C if under $100,000. 19

20. Attachment D Local Independent Must provide complete, signed IRS form 990 for a period ended not more than 18 months prior to January 2015 (no later than June 2013). Must have signature of Officer. Include all supplemental statements and schedules with 990. If not required by IRS to file standard 990 (revenue less than $100,000). Include Pro forma IRS Form 990 with appropriate parts. More details on page 6 of application instructions (also on slide 12). 20

21. Attachment E Local Independent Calculation of Administration/Fundraising Expenses Calculate by using IRS 990 List to the tenth % (e.g. 12.3%) For details see Item 7 page 6 of application instructions If Statement of Functional Expenses results in 0% rate, but show expenses on the audited financial statement, the application will be denied unless the audited financial statements specifically state that these services were donated. Taxonomy codes Up to 3; minimum of 1 Most closely identify mission, services and activities of organization Codes listed on page 7 of application instructions Codes were revised in 2012-13 – review and make sure they are still relevant Statement of 25 words or less Published in campaign materials Can only be 25 words! See handout of sample Attachment E for statement grid 21

22. 22 2015 SAMPLE ATTACHMENT E

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24. Application Instructions Federations New federations Must submit the federation application and the complete applications of all member organizations. Member organizations must have a local presence within the Potomac CFC area. If they are a Catholic organizations, please include a copy of the page from Catholic Directory where Catholic Charity can be found – circle the agency. Currently participating federations (Member Organizations must have a local presence within the Potomac CFC area). Must submit the federation application. Must submit a complete application for any new member organizations. Must submit a complete application for any organization denied participation in 2014. Currently participating federations will be audited by Potomac CFC. Will be notified by Feb. 17 th. Will audit 20% of member agencies of all federations. One Federation may have a 100% audit. 24

25. Attachment A Federations List of the federation and all member organizations applying for participation in CFC. Include information on excel spreadsheet. Complete the Column for page number of Catholic Directory where Catholic Charity can be found, if applicable Only use the official spreadsheet as designed. Please do not change the spreadsheet format. Please enter AFR as a % - Example: 26.5%. Email the spreadsheet for Attachment A to spatrick@rappahannockunitedway.org by the deadline.@rappahannockunitedway.org 25

26. Attachments B – D Federations Attachment B – IRS determination letter – 501(c)(3) Provide copies for the federation and all member agencies Will be verified with the IRS. Attachment C – Audited Financial Statements For the federation Attachment D – Signed IRS Form 990 If not required to file 990 must include Pro forma 990 with appropriate parts. 26

27. Attachment E Federations Listing of Board of Directors - REQUIRED Beginning & ending dates of each member’s term of office. List Board meeting dates and locations for calendar year 2014. 27

28. Attachment F Federations Copy of the federation’s most recently completed annual report – REQUIRED Dated no later than June 2013. Full description of the federation’s activities and supporting services. Accurate descriptions of the federation’s membership dues and/or service charges. The annual report or more frequently published document 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. 28

29. Please read carefully and don’t forget to sign! 13 Certifications must be completed. Read carefully! Certifying Official – Individual who has the authority to affirm everything that is in the application. – Affirms accuracy of application. 29

30. CFC Code Your 5-digit CFC Code stays the same as long as your organization is eligible. Code may be used on marketing and promotional materials, brochures, websites, newsletters. If you don’t have a 5-digit CFC code: OPM will assign a code and provide it to the CFC We will notify organization/federation with CFC code. 30

31. Hints & Tips for the Application Process Make sure you use the correct 2015 application  Get your application in prior to the Feb. 13, 2015 deadline.  Do you use accrual method or cash method of accounting? MUST use accrual method if revenue is over $100,000 Signatures/certifications Every application must be signed by a certifying official, but OPM no longer requires that each application contain an original signature. All certifications must be addressed Only 1 box may be checked for certifications that have more than 1 qualification  Board Member designations on 990 Number of voting members on 990 – Part 1 Line 3 must be equal to or less than the number listed as director/trustees in Part VII (C) If compensate 50% or more of officers, application will be denied 31

32. Hints & Tips for the Application Process You must have a local presence in the Potomac CFC area! Acceptance by CFC does not guarantee that OPM will accept, especially if there are IRS issues.  Use correct calculation for AFR % Read CFC Memo 2012-05 for info on calculation Correct Pro Forma 990 990EZ, 990PF, 990-N and comparable forms are not acceptable. DBA – “Doing Business As” Must provide documentation of DBA with application. Documentation must be from an “official” or government organization 32

33. Hints & Tips for the Appeal Process If your application is denied, follow through with the appeal process. Be aware of appeal deadlines. Specific reason for denial will be stated and that is the only issue you need to address in the appeal. Take the time to appeal! Federations - If you have a member charity that is denied, your denial letter will state how many charities are approved and how many denied. This correspondence serves as both your approval and denial notification and will be in a letter format sent by mail according to the denial regulations Federations - If you have all member charities approved, you will receive an email notification only. 33

34. Completeness Review Process When application is received, a Completeness Review will be completed by CFC staff. Completeness review is for your convenience, in case anything is incorrect or missing. If there is an issue, staff will contact you by email outlining the issues prior to the application deadline. Corrections can be made to application and/or attachments prior to the deadline. After the deadline, you cannot make corrections to the application or any attachments or add any information to the application or attachments. GET APPLICATION IN BEFORE THE DEADLINE! 34

35. Application Review Process Federal employees conduct the Application Review Process after the deadline. All local independent organizations, federations and new members of federations are reviewed. If there are issues, staff will contact you for a written explanation. You cannot change or add anything, you can only provide a written explanation about the situation. After application review, the LFCC meets and votes on approval/denial. 35

36. 2015 Application Calendar February 13 COB 4:30 p.m.-Deadline for all Applications  February 17 Notify Federations of Agency Audits  February 27Deadline for Federation Agency Audits April 30Notifications of denial/approval will be emailed/mailed May 8Local Appeals due May 13Final Denial notices mailed June 5OPM appeal deadline July 31Appeals completed by OPM August 31Database Updated/Booklet Complete Sept 1 – Dec 152014 Campaign  Federations only 36

37. Contact Information Sharon Patrick, CFC Campaign Coordinator spatrick@rappahannockunitedway.org 540-373-0041 Ext. 318 3310 Shannon Park Drive Fredericksburg, VA 22408 www.potomaccfc.org 37