Transcript Sponsorships Usage, Ethic & Events & The Repercussions of

Sponsorships Use,
Ethics & Events &
The Repercussions of the
Berry Food / Beverage
Directive
2013 MDRT Conference
Atlanta, GA
Facilitators: Dennis Burns & Lonna Moaratty
The Berry Directive

Directive was effective immediately, March 28, 2012, and is not limited to a
specific campaign period. Campaigns are prohibited from incurring
expenses or seeking reimbursement using CFC funds for food and/or
entertainment from that date forward.

Does the Directive impact the reimbursement for meals incurred by
PCFO staff, federal loaned executives and campaign workers when
traveling out-of-town for example to the annual OPM workshop?

The directive prohibiting paying for food and entertainment from CFC funds
does not prohibit reimbursement for travel costs incurred by an individual
needed in order to conduct CFC business or attend a training event. Of
course, those travel costs may not exceed the per diem rates established by
the General Service Administration (GSA). This would include travel for the
annual CFC training or overnight travel to campaign sites in large regional
campaigns. No expenses for entertainment during the travel may be
charged to or reimbursed by the CFC. As always, expenses must be
preapproved by the LFCC. If you and/or the LFCC are concerned about
whether the cost of planned travel is reasonable and reimbursable, please
seek guidance from OCFC.
The Berry Directive




Are other costs associated with campaign events permitted?
The reasonable costs of items such as room rental, balloons, programs, etc,
are permitted if approved by the LFCC. In its review of these expenditures,
the LFCC should consider whether the expenses are reasonable and
whether they promote the goal of securing the most funds possible for the
charities designated by CFC donors. When in doubt, the OCFC is available
to offer guidance.
Can the CFC charge donors to attend an event? The fee would cover
the cost of food and/or entertainment.
Yes. However, the expenses and the revenues cannot be accounted for as
CFC funds. The PCFO or the Federal agency where the event is held must
provide the financial support in advance and be the point of reimbursement
from employees. The CFC cannot incur the expenses in advance, even if it
will be fully reimbursed from attendance fees at a later date. Attendees
must be informed that the fee is not a CFC contribution and is not taxdeductible.
The Berry Directive

Are food/entertainment expenses permissible if they are provided by a
business or another source and not charged to the campaign?

Food and/or entertainment may be provided at campaign events if the costs
are not borne at any time by the CFC. CFC Memorandum 2006-05
provides additional information on the accounting for such expenses. The
phrase “campaign events” for these purposes means events that are open
to all potential donors with the purpose of encouraging them to make a
contribution or to thank them for their participation. Campaign events also
include award ceremonies. Campaign events do not include LFCC
meetings, LE or keyworker or other campaign personnel trainings or other
events that are not open to all potential donors in a Federal agency or the
campaign region. As always, campaigns must clear all sponsorships with the Designated
Agency Ethics Officers of the Federal agencies that will participate in the event.

Can the CFC accept in-kind contributions, such as food, from
businesses or other sponsors?

The campaign may accept non-monetary items for usage in the CFC if the
Designated Agency Ethics Officer of every Federal agency with staff
attending the event has approved the source of the contributions and the
value per employee.
The Berry Directive

Is there a rational in not bringing MDRT stake-holders
into decisions like this and the potential/proposed
regulatory changes that were not recommended by the
50 Commission? Particularly consider the 3 months it
took to clarify all the needed “exceptions” to the Berry
Directive which would have been identified.

The out-of-pocket burden on CFC staff, LE’s, LFCCs,
keyworkers…

The Workarounds:




Federal Sponsorship
PCFOs
FEB / FEA’s
Other Creative Options
Sponsorships & Donations

GEICO
What are you getting?
 How are you using it?
 How do we make it a win / win?
 New requirements

 Using
the FEB/FEA in 2013?
 Directly to 3rd Party vendors?
Sponsorships & Donations

Who else is sponsoring you?



Locally & Nationally
In-kind donations
Varied Agency Ethics
How to deal with the inconsistancies, challenge the
“won’t approve anything” agencies
 What do you do with the CFC-wide events: the
lowest common denominator or just have agencies
“opt out”

Ethics & Events

Is it a drawing, is it a raffle, is there anyway to have an affective
fundraiser? The Rules as we know them:
OPM Regulations regarding fundraising events and CFC: § 950.602 Solicitation methods.



(a) Employee solicitations shall be conducted during duty hours using methods that
permit true voluntary giving and shall reserve to the individual the option of disclosing
any gift or keeping it confidential. Campaign kick-offs, victory events, awards, and
other non-solicitation events to build support for the CFC are encouraged.
(b) Special CFC fundraising events, such as raffles, lotteries, auctions, bake
sales, carnivals, athletic events, or other activities not specifically provided for
in these regulations are permitted during the campaign period if approved by
the appropriate agency head or government official, consistent with agency
ethics regulations. CFC special fundraising events should be undertaken in the
spirit of generating interest in the CFC and be open to all individuals without regard to
whether an individual participates in the CFC. Chances to win must be disassociated
from amount of contributions, if any. Raffle prizes should be modest in nature and
value. Examples of appropriate raffle prizes may include opportunities for lunch with
Agency Officials, agency parking spaces for a specific time period, and gifts of
minimal financial value. Any special CFC fundraising event and prize or gift should be
approved in advance by the Agency's ethics official.
(c) In all approved special fundraising events the donor must have the option of
designating to a specific participating organization or federation or be advised that the
donation will be counted as an undesignated contribution and distributed according to
these regulations.
Ethics & Events

Legal Opinion to Make a Raffle a Nongambling Event (VARIES BY STATE)

1) the raffle must involve a "general and
indiscriminate distribution" of tickets (meaning that
tickets must be sent/distributed broadly and available
freely upon request); 2) free tickets must be offered
on the same terms as those tickets for which a
donation is given (i.e., free tickets must have the
same chance to win); and 3) participants must not
have to pay to have a chance to win, and the tickets
should make absolutely clear that people may
participate at all stages of the event for free.
Ethics & Events
CASE STUDY
Our Proposal: Eventually approved by OPM with the agency disclaimer of course:

Teams create baskets. Our goal is to raise CFC funds that would
correspond to the value of the baskets.

Baskets will be displayed and employees can place tickets in
boxes in front of each basket. Winners will be drawn from tickets
placed in the boxes provided for each basket.

Tickets will not be tied in any way to CFC contributions/pledges.

Tickets will be available at a suggested donation level but not
required (ie. if someone wanted a ticket without a donation it
would be given) removing the pay to play scenario.
Ethics & Events

All Kinds of Shades of Grey
Open to all employees – “ALL” – REALLY?

The phrase “campaign events” for these purposes means events that are open to all
potential donors with the purpose of encouraging them to make a contribution or to thank
them for their participation. Campaign events also include award ceremonies. Campaign
events do not include LFCC meetings, LE or keyworker or other campaign personnel
trainings or other events that are not open to all potential donors in a Federal agency or the
campaign region.


SO IF LUNCH IS SPONSORED AT YOUR KEYWORKER TRAINING IN A FEDERAL
AGENCY AND NEVER HITS THE “CFC BOOKS” IS IT OK IF THE AGENCY
APPROVES IT?
IF YOUR FEA SPONSORS AN EVENT IS IT OK?
Reasonable Gifts?
 Is it $20, Or if it is going to tens of thousands of federal employees is it a Harley?
Reasonable Costs?
 OPM: The room charge is reimbursable as long as it is reasonable.
 Room fees, “All-Inclusive” Room fees
Ethics & Events

So at the End of The Day What Is “OK”?
Dunk Tanks? Pie in the Face?– is it ethical?
 Gift Baskets – is it ethical?
 Most money gets dunked – is it ethical?
 Vote for your fav “XYZ” ie chili contest – is it
ethical?
 Other events?

Wrap Up

Final Questions?

Final Comments?
THANK YOU!