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Due to the nature of the Combined Federal Campaign (CFC) process, there are occasions when an organization that participated in a campaign ceases operations prior to the distribution of all receipts for the campaign. This memorandum addresses the handling of funds due to those organizations.
Local federations and independent organizations should contact the Principal Combined Fund Organization (PCFO) for the campaign in which the organization participates as soon as it is known that the organization will be ceasing operations. National federations and independent organizations should contact the Office of CFC Operations. In some cases, the organization may still be able to receive funds as it finalizes its operations even though it is not open for services. The federation or independent organization should advise the PCFO or OCFC of the final date the organization will be accepting funds. In no case may an organization receive funds after the fiscal year ending date on its final IRS Form 990 filed with the Internal Revenue Service.
The remaining funds due to the organization should be distributed to the other participating organizations in the campaign as undesignated funds. This will require a recalculation of the percentages excluding the defunct organization. If a federation learns of a member organization which has ceased to exist after it has received funds for the member from a PCFO, the federation should return those funds to the PCFO for distribution as undesignated funds. Federations should not maintain any funds designated for a defunct organization and should not share any funds designated for a defunct organization among its members. The funds must be returned to the PCFO for proper distribution. Documentation received from the federation, independent organization, or OCFC regarding the closing of the organization should be maintained by the PCFO for audit purposes.
If you have any questions about this memorandum, please contact your OCFC regional representative at (202) 606-2564 or at firstname.lastname@example.org.