Application Questions (Quirky & Weird Included)

Application Questions (quirky & weird included)

1. What do we put down for Federation/Fund? For Member Agency? a. A federation is a grouping of individual charities (ie: the United Way), while the member agency IS the individual charity.

2. Do we need to sign ALL of the sections (1-4) on the compliance agreement; I don’t think they apply to us? a. If they “don’t apply to you” then you can not participate. The locations requesting initials confirm that you have read all of the basic policies of the campaign and can adhere to them.

3. The application requests that we provide a letter from the accountant/CPA detailing the reconciliation between the 990 & the Auditor’s review…our executive director does the 990 and the auditor does the review…can the ED simply sign the reconciliation letter? a. A reconciliation letter only needs to be provided IF the Auditor’s Review & the 990 DO NOT match. This letter should detail the discrepancies, provide an explanation, and should be signed BY the CPA.

4. We have recently been reorganized to fall under the international parent organization and now we use the financial information (auditor’s review, 990, 501 C3 letter, etc.) of this world parent organization. We also do not have a local board of directors, only an advisory committee. Can we still participate? a. Yes, an organization may use a parent 990 and 501 (c)3 letter if that organization has the Certificate of Authority stating that they can do business in the State of Texas. Also as long as the organization has a committee that meets at least twice a year to set policy and manage affairs they are fine regardless if they are simply setting those policies and managing those affairs at an advisory level.

5. We receive money from multiple federations (ie: Sickel Cell Assoc. receives money from 4 different United Ways in different areas) because we serve a variety of geographic areas in the Houston campaign area. Can we apply as an affiliate to all of these UW’s? Thus allowing our name to appear multiple times on the listing? a. Yes, as stated in the application (Attachment L-1) a local organization who is applying under more than one federation must attach a document listing each federation under which it will apply as well as a document listing the separate and distinct populations which will be served under each federation. An organization failing to provide this will not be listed under more than one federation. b. It is considered to be “double dipping” and is not allowed, unless the affiliate has multiple branches (ie: satellite offices, outlying branches, etc.), or can provide a statement stating how they serve separate & distinct geographic regions/populations. Thus the affiliate will need to choose which federation they would like to represent them. c. Policy that addresses this issue: Attachment A 6. Do we need to send in multiple copies of the application? a. As a UWTGC affiliate, this is not necessary b/c we all reside in the same building and it essentially amounts to extra storage. However, for the other federations, this is requested so that they can retain a copy of the full application on file, and send in the other to us. Thus, the application requests that they send in an original & 1 copy. The original application requests up to ~ 4 copies! This is not necessary. b. We also request it to be tabbed and UNbinded for storage/filing purposes.

7. While our organization has a budget exceeding $100,000, we have not found the need to purchase the expensive & time consuming services of an Auditor in the past, and only have a “CPA’s Compilation Review” letter. Will this suffice for attachment D which requires an Auditors full review? This is our first year to apply to the SECC. (ie: Bridges to Life) a. An audit is required for any organization with a budget exceeding $100,000 as stated in Texas Gov’t Code Ann. Section 659.146 and there is really no way to get around this. This organization is NOT eligible for participation and in order to apply to the SECC in the future they will have to find the dollars to have an audit conducted.

8. What do we use for attachment A, these documents go by various titles? a. Articles of Incorporation, Certificate of Incorporation, Certificate of Authority.

9. Can Local Unaffiliated Charities go through the recertification process? a. NO, LUA’s must fill out a complete application each year. b. NOTE: 2007 is a FULL application year – no recertification allowed.

10.Our organization does not file a Form 990 since we have never had an income in excess of $20,000 per year (and it is not required). We do have our 501 C3 letter, but none of the other required attachments. Can we still apply/participate? a. Both of these are statute requirements. An organization without a IRS Form 990 is ineligible. They can go ahead and apply but most likely will be denied due to an incomplete application. Do they not file any type of form with the IRS?

11.Our organization categorizes expenses differently than the way you require to calculate admin. Expenses. You require that we (line 14 + line 15) / (line 12). Line 15 = Fundraising expenses which we automatically lump into the line 14 expenses (Management expenses)…thus, our true admin costs are 16%, but if we calculate it as required by the SECC it comes to ~ 45%. Can we still apply, and appeal to the SPC (we have never been accepted to the SECC, even though we apply every year)? a. As far as the fundraising expenses are concerned, this expense calculation is what we have always used for the SECC. They can go ahead and apply and expect to be automatically denied by the LEC and can appeal to the SPC, if they can convince the SPC to view their percentage differently then we go from there

12. We are helping one of our programs launch into its own, but they don’t have any of their own paperwork, financial statements, etc. yet. Can they simply use our paperwork to apply to the SECC? a. Yes, they may. However, if a start-up charity is using the paperwork and financials of an established charity to apply to the SECC, the established charity may not apply in addition. b. EX: Wheeler Ave. Church is helping a charity, ICV, (that began within the church) get started by helping them apply to the SECC with their financial paperwork (ie: 990, 501 c3 letter, etc), but Wheeler Ave. Church also plans to apply. The answer to this problem is that WAC can apply on behalf of ICV (using WAC’s paperwork, but ICV’s name), but they would have to step down and resign their position in the campaign. The other option is to continue to apply under WAC, and simply funnel funds to the charity until they get started on their own.

13. Will it disqualify someone if they do not put down their last three year’s admin expenses? I’ve had several organizations put down their current admin % (which is under 25%), but not the previous 3 years. a. Organization's need to provide admin expenses for the year's they were in the campaign. If they do not provide that then yes that would be an incomplete application.

14. Also, one more question about the USO organization – the USO organization has a local presence, and a local advisory committee, but are using the financial statements & 990 of the USO world organization (they have dropped their previous status, and recently joined the world organization). You had said they could use the World’s financials statements…but they are left without having Texas Articles of Incorporation, but they do have their 501 c3 letter, a 990, and an audit. Is that sufficient, or must we deny them? a. If the org you are referring to does not have a cert of authority then their application is incomplete, cut and dry. ATTACHMENT A: “Double Dipping Policy”

34 Texas Administrative Code: (n) Responsibilities of the state policy committee.

(1) Statutory responsibilities. The state policy committee shall fulfill its statutory responsibilities as set forth in the Government Code, Chapter 659, Subchapter H.

(2) Additional responsibilities. In addition to its statutory responsibilities, the state policy committee:

(A) shall establish an annual application, eligibility determination, and appeals period for statewide or local participation in the state employee charitable campaign;

(B) shall determine the eligibility of a federation or fund and its affiliated agencies for statewide participation in the state employee charitable campaign;

(C) shall review and resolve the appeals of entities not accepted for statewide or local participation in the state employee charitable campaign under procedures that comply with paragraph (3) of this subsection;

(D) shall disqualify a federation or fund from statewide participation in the state employee charitable campaign if the committee determines that the federation or fund intentionally filed an application that contains false or misleading information;

(E) shall establish penalties for non-compliance with this section by a statewide federation or fund, an eligible local charitable organization, the state campaign manager, or a local campaign manager;

(F) shall establish procedures for the selection and oversight of the state campaign manager and local campaign managers;

(G) shall select to act as the state campaign manager: (i) a federated community campaign organization in accordance with the criteria listed in paragraph (4) of this subsection, if any federated community campaign organization has applied to be the manager; or (ii) a charitable organization in accordance with the criteria listed in paragraph (4) of this subsection, if no federated community campaign organization has applied to be the manager;

(H) shall contract with the organization selected as the state campaign manager;

(I) may establish policies and procedures for the operation and administration of the state employee charitable campaign, including policies and procedures about the hearing of any grievance concerning the operation and administration of the campaign;

(J) shall consult with the state campaign manager and the state advisory committee before approving the campaign plan, budget, and materials; (K) may not approve campaign materials if: (i) they do not state that statewide federations or funds may or may not provide services in all local campaign areas; (ii) they list a charitable organization as both a statewide federation or fund and an eligible local charitable organization; (iii) they list a charitable organization as an affiliate of two or more statewide federations or funds unless the organization serves separate and distinct populations as part of each statewide federation or fund; (iv) they list similarly named eligible local charitable organizations in the same local campaign area unless the appropriate local employee committee has determined that each organization delivers services in different geographical areas within the local campaign area; (v) they list a charitable organization as an affiliate of more than one federation or fund certified as an eligible local charitable organization unless the appropriate local employee committee has determined that the charitable organization delivers services to separate and distinct populations in the local campaign area as part of its membership in the federations or funds;

It’s also included in the application: SECTION 4. AFFILIATE UNDER MORE THAN ONE FEDERATION.

INITIALS: This organization is is not applying to participate in this campaign under more than one federation or fund. 34 Tex. Admin. Code, Section 5.48(a)(2) and (n)(2)(K)(iii).. If this organization is applying to participate in this campaign under more than one federation or fund, an Attachment L-1 must be part of the application as submitted to the State Policy Committee for eligibility determination.

Attachment L-1 . Multiple listing. If a statewide charitable organization is applying under more than one federation in the statewide campaign, the organization must attach a document listing each federation under which it will apply. The organization must list the separate and distinct population(s) served under each federation. An organization failing to provide this attachment and establish that a separate and distinct population is served under each federation will not be listed under more than one federation in any campaign materials. 34 Tex. Admin. Code, Section 5.48 (a)(2) and (n)(2)(K)(iii).