Question
What are the eligibility requirements for an organization to participate in the CFC?
Answer
To be eligible to participate in the CFC, a charitable organization must be recognized as a tax-exempt non-profit organization under
26 U.S.C. 501(c)(3) of the Internal Revenue Code. An application to participate in the CFC must provide specific information about the organization's accounting, governance, and program functions, as specified in the
CFC regulations at 5 CFR §950. The organization must also provide a completed and signed copy of its IRS Form 990 for the most recent fiscal year.
Organizations must demonstrate that they provide services in the service area to which they are applying:
- National/International organizations provide services in 15 different U.S. states and/or one foreign country over the three year period immediately preceding the start of the campaign’s application year.
- International organizations are defined in regulation as charitable organizations that provide services either exclusively or in a substantial preponderance to persons in areas outside of the United States. These organizations must provide evidence of services in at least one foreign country over the three year period immediately preceding the start of the campaign’s application year.
- Local organizations are those that (1) have a substantial local presence in; and (2) provide services in the local campaign zone to which they apply. The services must be provided during the calendar year immediately preceding the start of the campaign’s application year.
Charities may apply to participate in the CFC individually (as an unaffiliated, or "independent", organization) or they may be represented by a federation. A federation is a coalition of individual charities that align to minimize administrative costs and to coordinate activities. All CFC application and participation requirements that apply to individual charities also apply to federations. In addition, federations must demonstrate that they have no fewer than 15 CFC member organizations that meet the CFC eligibility criteria.