CFC Cabinet Meeting
Minutes of January 4, 2007
Host: Sharon Al-Uqdah
APWU Hall, 3824 E. 16^th Street , Kansas City , MO

Those in attendance:                           

Cabinet Members in attendance:      

Mokhtee Ahmad, FTA                                   Sharon Al-Uqdah, APWW    
Michael Anthony, USMC                               Jeff Beaton, USPS                                       
Gary Beets, FMS                                            Shelley Brodie, EPA
Patrick Bustos, EPA                                       Lee Cason, IRS                                  
Rob Cowan, DHS-NBC                                 Pat Clyma, SSA                                             
Debbie Danner, FAA                                      Linda Day, USPS                              
Melvin Hawkins, NTEU #264                        Cindy Hillman, FEB
Larry Hisle, CFC                                            Nadine Johnson, FDA
Rodger Matthews, USDA                              Matt Michell, USDA
Joe Parnacott, NATCA                                   Quo Tyler, USPS
Carol Starnes , VA Med -AFGE                                                           

Alternates & Others:

Alfreda Lewis, FTA, Harry Strader, United Way of Greater Topeka , Capt. Vincent Weber, USCG, Cara Christianson, FEB   

Welcome & Introduction – Rob Cowan & Sharon Al-Uqdah:

Rob & Sharon thanked the cabinet members for being involved in the campaign this year.  Each member in attendance introduced themselves.  

Results of the Campaign-Larry Hisle:

            Semi- Final Tally - $3,038,220         

(Amount announced at Awards Breakfast was on January 17^th was $3,045,076)

            Highlights:

·          As of the morning of the meeting, we had surpassed last year by $4,000, with up to $4,000 still projected to come in.

            ·          Participation is up from 34.94% to 36.34% (33.87% in 2003)   

(9,939 actual donors)

·          Federal employee count is down by 686 employees (we could/will lose up to 1,000 additional federal employees to the BRAC Closures.

            ·          Average gift was down by $4 to $305.69

            ·          Per Capita gift increased to $111.10vs $108.25in 2005

·                     Eagle Donor’s raised $995,581 which made up for 32.77% of the campaign

            ·          Leadership donors up to 788, a 5% over last year.

·                     We had 568 continuous donors and 220 new donors at this level.

·          We lost 153 donors from the prior year (56 from retirement)

·                     There were 576 Commander Club Members ($650)  & 1,291 Pillar Club 

Comparison Sheet

            ·          Copy of 2006 CFC results by divisions were available at the meeting.

                        Attached to these minutes

 New Regulation Changes    

Larry presented a powerpoint presentation of changes to the Eligibility Process and other major changes.

 Changes from 2006 Applications

ü       Terminology/Definitions

ü        Hours of Operations/Location

ü        Verification of 501(c)(3) Status

ü        Treatment of Bona-Fide Affiliates and Chapters

ü        Audit Thresholds

ü        Reconciliation

ü        Administrative and Fundraising Rates

ü        Certifications      

 Certifications and Documents No Longer Required

•          Lobbying Expenses

•          Reconciliation of Audit and IRS Form 990

•          Explanation and Plan for Reduction of AFR

•          Submission of board terms and meeting dates and locations*

•          Identification of State of Incorporation

•          80% Government Support Ceiling

•          Submission of Annual Report*

*(still required of federations)

 Continued Accountability CHARITIES

q        Core requirements remain

1.             IRS determination letter

2.             IRS Form 990

a)       LFCC no longer required to reconcile Form-990 and Audit (benefit:  past reconciliation proved time consuming and unmerited).

3.             Audited Financial Statements

a)       Charities with $250k or more in revenues must prepare and provide an audit with their application and can be grounds for denial (benefit:  the increased threshold will minimize the number of applications requiring extensive screening).  

b)       Charities with $100K-$250K in revenues must have an audit completed, but are not required to submit it as an official application attachment.  However, the LFCC can request an audit be provided with the application submission, but can not use this document as grounds for denial (benefit:  the LFCC’s authority to request audit statements will insure agencies below $250k still remain accountable.  The agency must provide an audit within 10-days of the request.  If an agency fail to provide an audit within the 10-day period, the LFCC has the right to deny the charity for failure to provide requested information it was required to have available).

c)       Charities with less than $100k in revenues are not required to submit or prepare an audit (no change in regulation). 

 Other Major Changes

 SELECTION OF THE PCFO

Ø       Previous Regulations

ü       Local Federal Coordinating Committee (LFCC) advertised via a Public Notice

ü       Annual PCFO Application and Selection  

Ø       New Regulations

ü       LFCC has discretion on how to advertise

ü       Multi-year agreements not to exceed 3 periods, subject to renewal each year.

 SOLICITATION PERIOD AND CAMPAIGN SCHEDULE

Ø       Previous Regulations

ü       6 week period between Sept. 1 – Dec. 15

ü       Contained many regulatory due dates

 Ø       New Regulations

ü       Removed the 6 week period limitation, but retained Sept. 1 – Dec. 15

ü       OPM removed the regulatory due dates and will issue a calendar no later than Oct. 31 (see handout)

 SOLICITATION METHODS

Ø       Previous Regulations

ü       Retirees, contractors and others employed on Federal premises can participate via check or money order, but not be solicited

ü       Special fundraising events are allowed with approval from Heads of Agency/Department

 Ø       New Regulations

ü       Still cannot be solicited, but can participate via cash, check, money order or other electronic means if approved by Director

ü       Events should be to promote interest in the CFC, open to all employees – regardless of whether they contribute, and prizes/gifts must be modest in nature or value.  

CAMPAIGN DISBURSEMENTS

Ø       Previous Regulations

Monthly beginning April 1 or Quarterly beginning June 1

 Ø       New Regulations

Quarterly beginning April 1, LFCC/PCFO can decide if they wish to make payments more frequently (monthly)

 ELECTRONIC INITIATIVES

Ø       Previous Regulations

Did not consider possible electronic initiatives  

Ø       New Regulations

Terminology changes

Adds ability for electronic contribution methods (e.g. credit cards) as approved by Director

Adds ability for electronic giving as approved by Director

Contribute outside of geographic areas during emergencies/disasters and eventually at all times as approved by Director                                   

GAO Report

Larry presented a powerpoint presentation on GAO Findings

GAO Findings

 GAO Review Findings

Ø       Non-existent charity application filed with three local campaigns – accepted into all three campaigns

Ø       Participating organizations not recognized as 501(c)(3) organizations by the IRS.

Ø       Several charities were found to be behind in Payroll Taxes and FICA fees.

 Charity Verification Process

•          OPM will Verify Charity Status with the IRS Business Master File

•          OPM will Verify Charity Status with IRS Publication 78

•          If unverified, OPM will require organization to request currently dated verification letter from the IRS

•          OPM may direct PCFO to freeze funds until verification complete

•          OPM may direct PCFO to distribute as undesignated any funds for organizations determined not to be 501(c)(3)

•          Verification is an annual process

Merger Opportunities

An unsolicited request was made by the Capital City ( Topeka )/Fort Riley CFC to have them merge with the Heartland CFC.  Slides were shown of the coverage area and the details of this campaign.  In order to merge, both LFCC’s must take a vote.  Harry Strader (PCFO rep and Capt. Vincent Weber (LFCC Chair) from the Capital Area/Fort Riley CFC were in attendance.  A motion was made by Carol Starnes to approve and send to the FEB for the official vote.  This was seconded by Jeff Beaton.  All members in attendance, minus one, approved.  A vote by the Capital Area/Fort Riley CFC is to be taken on January 11, 2007. 

(Members of the Capital Area/ Fort Riley CFC approved this merger at the January 11^th meeting, pending OPM’s written letter denying the split of the Topeka / Fort Riley Campaign.  The Greater Kansas City FEB approved the merger on January 17, 2007)

 A second discussion was held on incorporating the remaining counties which are not covered by any CFC into the Heartland CFC campaign.  This would be an additional 65 counties.  A motion was made by Linda Day to approve and send to the FEB for the official vote.  This was seconded by Shelley Brodie.  All members in attendance, minus one, approved. 

(The Greater Kansas City FEB approved the merger on January 17, 2007)

Vote on Awards

Members were asked to vote on the top four entries in the following categories:  

“Best Use of Marketing” in this year’s campaign.

Our nominees are:

1.  USDA - National Information Technology Center

2.  Kansas City VA Medical Center

3.  Federal Aviation Administration

4.  Social Security Administration

“Best/Unique Special Event” in this year’s campaign.

1.       Environmental Protection Agency

2.       US Postal Service - Kansas City , MO Plant

3.       Financial Management Services

4.       Internal Revenue Service Campus

5.       Federal Aviation Administration

6.       US Army Corps of Engineers

7.       DHS - National Benefits Center

Each member was given a score card and the winners announced at the breakfast.

 It was decided to do Critique of the Past Year performing a SWOT Analysis -All:

Cabinet members were asked to email comments in the  following six areas.

 ·         Campaign Planning                      

·         Communications

·         Awards Programs

·         Agency Head Visits

·         Campaign Process

·         Other

 Campaign Planning  

• For me it starts with setting the goal.  It is easy to be influenced (pressured) in goal setting to automatically use the previous year's goal or final revenue number and add x% to it for your current goal.  The goal setting process should be a realistic outlook based upon factors known to exist or likely to exist during the campaign (e.g., BRAC closures, agency downsizing efforts, mergers, major disaster/crisis events such as Katrina, etc.).  I thought this year's goal setting was done under that approach and it worked out very well-- this is something that each new CFC Committee should keep in mind.

• Planning was a strength.  It was well thought out and communicated.

• S: good mix of personnel (experienced/newcomers) & ideas;

adaptable/flexible participants (i.e., difficulty obtaining kick-off
speaker &  parachute event yet made adjustments, agency appts.); great
"can-do" attitude by participants.  Strong organization; leadership
cordial, yet the business-like demeanor helps efficiency and schedule..

      W:  none that I observed

      O:  recommend a good mix of personnel next year

      T:  time limitations are the only "threat" to planning that I

could imagine

• S:    Overall campaign plan is good

W:   Need to work on Agency Head Visit planning/training

O:    1 on 1 training with past Loaned Executives (LE's), committee members, etc.

T:     Lack of Communication prior to campaign start

• I liked attending the cabinet meetings, I learned a lot about the CFC process and was glad to see that it definitely was/is an employee campaign and to see that we did/do have input about the campaign.

• CFC Planning Outline was excellent , need to push to make sure Postal representative is on board early

Communications

• S:  excellent community outreach, planning and implementation;

       very efficient communication among CFC team members as well.

      W:  none that I experienced.  Hectic pace at the onset of

campaign, but communication was still effective and timely, not

problematic.

      O: recommend we continue the "status" email updates re:  funds.

Easy to share these among coordinators and keeps morale strong.

• S:    Overall, campaign communication is good

W:   No comment

O:    Introduce loaned executives before agency head visits

T:     No Comment

• The video and posters were great, the communications committee did and excellent job.  The web site is a tremendous asset for the campaign.  Also Larry you did/do a great job of e-mailing and keeping everyone informed.

• Don’t assume that all participants understand the whole process, although all agencies have participated for years, new individuals may not understand what is needed when – who the process affects their campaign – general knowledge of what other agency reps have.  May not know what questions to ask

 Awards Programs

• S:  excellent variety in the awards; helped the CCs maintain

enthusiasm and have fun; good use of incentives (different levels of

giving)

       W:  difficult for a large agency to achieve the "Caring for

Community" award.  Many large agencies meet most of the criteria except the 50% participation.  

• S:    Well organized

W:   Set menu

O:    Go back to buffet style breakfast to better accommodate large crowd

T:     No Comment

• If your talking about the give always and the recognition awards, Nadine did a great job.

• Done well

Agency Head Visits  

• Understand the importance of the visits but they are very difficult to get scheduled and conducted within the timeframe allotted.  Don't know if other Divisions experienced the same difficulty or not.  I hope to improve upon this for the 2007 campaign by better up-front and more advanced coordination efforts with agencies within the division.

• Training was good but I think the training for the division reps and loaned executives shoud begin earlier. These people have to get an earlier understanding of the time constraints involved.  It may also be good to have the some past division reps and  loaned executives  attend the training so they could share their experiences and lessons learned.  During my visits I was only able to visit with about 50% of the agency heads, most of the time I met with the person that ran the campaign.

• S:  I consider this the backbone of the campaign and very

effective.  Early buy-in on the goal is essential so everyone is on the

same page. Well- run; adds an element of responsibility/ leadership that enhances the campaign.

      W:  none

      O:  recommend that campaign coordinators be present at the agency

head meetings if at all possible. Encourage agency heads to assign CC if no one volunteers.  Recommend a follow-up meeting or email to confirm dollar goal, particularly if the CC is not available during the Agency Head meeting.  Recommend the agency head be encouraged to 'check in" on their CCs for updates and provide any leadership/support to ensure the success of the campaign.

• S:    Good concept

W:   Not enough formal training provided and not provided early enough

O:    Need more detailed, formal training and more heads up.  Went to meetings and got involved, but did not realize the task at hand.  May need to start earlier, conduct a mock meeting, schedule 1 on 1 meetings with past LE's etc. - This would also be a good time to meet other LE's for the upcoming campaign.

T:     Lack of management support can make this an extremely difficult task, no cooperation from agency head is biggest threat

• I feel they went well, however as a first time loan executive I could have used a little more training/information before going out doing the calls.

• Can’t always get top level back-up – campaign is more successful when one on one visits are made

Campaign Process

• Not sure why, but it seems like each year the funds/pledges are slow to come in causing the campaign to be extended.  Can we identify the cause(s) for those delays and focus some attention on accelerating the collection of funds/pledges?
• Process is good.
• excellent training of LEs, excellent coordination and distribution of materials; excellent support re:  forms, contribution questions, etc.

• W.  would like  more time on the initial compilation and

distribution of campaign materials per division.  very hectic pace which led to minor distribution problems later re:  recognition items.

             O.  recommend materials be distributed before campaign begins, if

possible

T.       none

·         S:    Overall process is great

W:   Loaned Executives traveling in personal vehicles with large sums of money is a concern.  Need to establish a better system to collect cash.  Too much liability for a volunteer to assume.

O:   Solicitation of Contractors/Expansion into new counties

T:    No Comment

• Need to push to get agency involved early

 Other

• Loaned Executives are "crucial" to the success of the CFC Campaign.  They do most of the leg and face work with agency contacts.

 ·         I recommend that Heartland CFC publish examples throughout the year of how dollars benefited the local community

• These may already exist and you may already cover them in your training.  If not, I believe it would be useful to develop standard internal control guidelines for agency campaign coordinators – basically, the required steps that coordinators should be taking to take care of the money.  Things like collecting money every day, dual custody, especially during the counting of money, locking money up at night, etc.

• It would be useful to set clear expectations with agency campaign coordinators, to be monitored by LE’s, relating to the collection, counting, and reporting of donations.  I would suggest that coordinators be required to collect, count, and report at least every week, perhaps more often.  This information is vital as the LFCC/PCFO/FEB make decisions such as extending the campaign and/or encouraging participation if it appears we’re going to come up short.

• S:  personal approach is very successful; highly recommend that

this is nurtured and emphasized throughout the campaign.  The director overviews of CFC are very inspirational and motivating for employees.  This visibility and professionalism contributes greatly to the success of the campaign.  Excellent "can-do" attitude by leadership helped to motivate LEs and CCs.  This team approach is particularly helpful when encountering  challenging agencies.

• Instead or in addition to big LE notebooks, provide pocket or smaller journal style books for directions, numbers, notes, etc.  This makes it easier to carry or use while in the car or on the go.  Could also provide laminated cheat sheets/phone numbers that fit in journal pockets.

• I've always been involved with CFC in someway, however thanks to being the loan executive this year and working on the different committees, I really felt that I gave back and that is what I really feel it's about.

 Labor Update –  

 No Up-date, however Sharon did lose her election for president of the APWU and would be stepping down as Labor Co-Chair.

New Officers for 2007 – Rob Cowan, DHS-NBC/ Sharon Al-Uqdah, APWU

            Campaign Cabinet for 2007:

            CFC Co Chair:                                    Rodger Matthews, USDA
            CFC Labor Co Chair:                                                
            Associate Campaign Chair:                 Selwin Epperson, USPS
            Community Involvement Chair:         Rob Cowan, DHS-NBC
            Day of Caring Chair:                          Jeff Stetina, IRS
            Eligibility Chair:                                  , GSA
            Ex-Officio:                                          , OPM
                                                                        Cindy Hillman, FEB
            Division 0:                                           Gary Beets, FMS
            Division 3:                                           Dennis Johnson, Bureau of Census
            Division 5:                                           Terry Freeman, USPS

Upcoming Events

2006 Awards Breakfast                      January 17, 2007
2007 CFC Cabinet Meeting                March, 2007
Eligibility Process                               March 12^th to April 13^th