APVG-CG
MEMORANDUM FOR All Military Personnel and/or Department of Defense Civilian Employees Within 25th Infantry Division (Light) & United States Army, Hawaii (25th ID (L) & USARHAW)
SUBJECT: Policy Memorandum SJA-3, A Guideline for Informal Funds, Unit MWR Funds, and Private Organizations
1. Purpose. The Commander, 25th ID (L) & USARHAW, as the installation commander for all United States Army installations in Hawaii, by virtue of his inherent authority as commander and through the specific authority granted to him by Army regulation, is responsible to ensure that personnel are aware of Army policy regarding private organizations and for establishing, if desired, more specific policy and procedures for private organization activities and informal funds on Army installations in Hawaii.
2. References.
a. Standards of Ethical Conduct for Employees of the Executive Branch, 5 Code of Federal Regulations (C.F.R.), 2635.
b. Joint Ethics Regulation (JER) (DoD 5500.7R).
c. AR 210-22, Private Organizations on Department of the Army Installations and Official Participation in Private Organizations (22 October 2001).
d. AR 600-29, Fund-Raising Within the Department of the Army (1 June 2001).
e. AR 600-20, Army Command Policy (13 May 2002).
f. AR 30-19, the Army Food Program (30 August 2002).
g. DA PAM 608-47, A Guide to Establishing Family Support Groups (16 August 1993).
h. Memorandum from the Director of Community Activities (DCA), Subject: Regular Unit Funds (2 October 1995).
3. Applicability.
a. This policy applies to all soldiers, family members and civilian personnel assigned or attached to the 25th ID (L) & USARHAW, and any private organization operating on an Army installation in Hawaii.
b. This policy letter rescinds USASCH Supplement 1 to AR 210-1 dated 17 January 1983, and the DCA Guidance Letter for Flower and Cup Type Private Organizations, dated 20 July 1994.
4. Funds Authorized To Operate and Fundraise On The Installation:
a. Informal Funds. An informal fund is an unofficial activity that is authorized to operate on DA installations without having to be authorized as a private organization, provided they generally do not exceed a net worth of $1000 and have a limited scope, activity, or purpose. Examples of these funds include: Cup and Flower or Plaque Funds, Office Coffee/Soda-Type Funds, Annual Picnic Funds, and Family Readiness Group Funds (FRG Funds).
b. Additional Funds. Additional Funds include Unit MWR Funds and Private Organizations (POs).
c. The Joint Ethics Regulation (JER), paragraph 3-300, prohibits fundraising within the federal government workplace. All fundraising must occur in public areas, e.g. outdoors, in front of the PX, etc.
5. Informal Funds.
a. A memorandum must be prepared which details the type of fund being established, the purpose of the fund, the members of the fund, spending and voting procedures, appointment of a designated fund custodian, etc. A constitution and bylaws are not necessary for an informal fund.
b. The memorandum must be reviewed and approved in writing by the battalion commander for all funds at the battalion or company level and brigade commander if it is a brigade-level fund. Staff section heads are authorized to approve informal funds operating within their sections.
c. The fund custodian may only administer fund business during off-duty time and must prepare an annual report to the fund approval authority, as appropriate, concerning the fund’s existence and purpose, financial status, or upon occurrence or suspicion of irregularities associated with the fund. Reports must show income and expenses during the previous year and be maintained with the fund records.
d. Money from the fund may be spent only for the stated purposes of the fund. Expenditures must not be contrary to Army interests.
e. While fundraising or participating in donation activities, soldiers must be off-duty, volunteers, and not in uniform (including the PT uniform). DoD employees are prohibited from soliciting door prizes, etc. for a DoD activity at any time, even when off-duty.
f. Generally, informal funds should not exceed $1,000 for any extended period of time.
g. See Appendix for further guidance regarding Cup and Flower or Plaque Funds, Office Coffee/Soda-Type Funds, and Family Readiness Group Funds (FRG Funds).
6. Additional Funds (MWR and Private Organizations).
a. Funds raised on behalf of additional funds are subject to the same stated in paragraph 5 above.
b. Additional funds are not limited by a $1,000 cap.
c. All funds raised in support of a unit’s MWR fund must be spent by the send of the fiscal year or they will be lost.
d. See Appendix for further guidance regarding MWR and Private Organization funds
7. Other Considerations.
a. Pre-Approval Requirement From Preventive Medicine: If food is available at a fundraiser, coordination must be made with Preventive Medicine at 655-6037/6038. Foods may be inspected, without notice, by Preventive Medicine.
b. Car Wash Restrictions: Car washes must be approved by the appropriate Community Commander. On-post car washes may be held only at the designated car wash sites on Schofield Barracks and Fort Shafter.
c. Raffles: Raffles are illegal in the state of Hawaii. However, if donations are solicited for tickets and a free ticket (or chance to win) is provided to any person who wishes to participate without making a donation, the fundraising event is permissible (because not considered a “raffle” under state law). If conducted in this manner, these activities do not violate Hawaii’s anti-gambling laws because there is no required payment to participate. All persons who distribute tickets must be aware of the “free ticket” rule and be off-duty, out of uniform, and acting as volunteers only. These activities must be approved in advance by the appropriate Community Commander’s office.
d. Use Of MWR Facilities For Fundraising: All on-post POs, FRGs, and fundraisers in support of the unit MWR fund may use MWR facilities for fundraising. All requests must be submitted for approval by the following agencies in the listed order: 1) DCA, 2) the appropriate Community Commander, and 3) the facility requested.
8. Expiration Date. This policy remains in effect until canceled or superseded in writing.
9. Proponent. The Office of the Staff Judge Advocate (OSJA) is the proponent staff agency for this policy memorandum. Questions concerning this policy should be directed to the SJA, Administrative Law Branch, 655-8743.
Encl ERIC T. OLSON
as Major General, USA
Commanding
Appendix to Policy Memorandum SJA-3, A Guideline for Informal Funds, Unit MWR Funds, and Private Organizations
1. Informal Funds.
a. Cup and Flower/Plaque Fund. A cup and flower or plaque fund is considered an informal fund subject to AR 600-20, paragraph 4-21.
(1) Fund Purpose. Any monies collected for this fund may be used only for participating members or their immediate families for the purchase of gifts or services such as leis, flowers, baby cups, farewell gifts (plaques) and similar items as designated in the memo.
(2) Fund Approval Authority. Battalion or brigade commander, or staff section head.
(3) Fund Restrictions. Income may be derived from the collection of membership dues, assessments, or fundraising.
(4) Member Eligibility. All members, including the fund custodian, must be volunteers (they may become non-members at any time). Officers, NCO’s, Staff sections (sub-units) or similar groups may establish their own cup and flower fund.
(5) Reporting Requirements. Report to the fund approval authority, annually, or at a change of fund custodian or fund approval authority.
b. Family Readiness Group Funds. A family readiness group fund is considered an informal fund subject to AR 600-20.
(1) Fund Purpose. A family readiness group may periodically raise and spend money in such a manner that the broad goals of the FRG are supported (i.e. social events, supplies, child care for everyone during a meeting, dayrooms, newsletters, etc.). FRG funds must be used for activities that support the entire group rather than for specific individuals.
(2) Fund Approval Authority. Battalion or brigade commander, or staff section head.
(3) Fund Restrictions.
(a) The use of funds must not duplicate what other agencies provide (i.e., establishing a loan fund or emergency food locker when other agencies such as ACS or AER already have programs established).
(b) FRG funds may not be spent to help an individual family after a death, fire, etc.
(4) Member Eligibility.
(a) FRG membership may include unit family members and soldiers, as well as others interested in the welfare of the members (i.e. fiancées, retirees, etc.).
(b) FRGs will not duplicate each other. For example, if each company in the battalion has a FRG, there will not also be a battalion level FRG. This does not prohibit battalion level steering committees, nor does it prohibit splitting a HHC FRG into a company FRG and a staff section FRG.
(c) Although typical FRGs will be unit-based, many organizations, directorates, and staff agencies also benefit from active FRGs. There are also circumstances during which community-based FRGs should be established. Contact the Office of the Staff Judge Advocate, Administrative Law, for guidance on community-based FRGs.
(5) Fundraising.
(a) DoD employees (including soldiers) are prohibited from soliciting gifts, on or off-duty, in support of this fund.
(b) Soldiers must be volunteers, off-duty, and out of uniform (including PT uniform) to fundraise for a FRG.
(c) To fundraise on post, FRGs must obtain the approval of the Community Commander and the owner of any facility that will be utilized for fundraising (e.g. PX manager, Commissary manager). In addition, if the FRG wishes to conduct a food sale, it must also obtain permission from Preventive Medicine. As an exception to this rule, FRG fundraisers solely within a battalion area may be approved by the battalion commander. Food sales must still be approved by Preventive Medicine.
(6) Taxes. As a federal entity, FRGs are not subject to local, state or federal taxes. However, FRGs that concentrate solely on fund raising do run the risk of losing their status as a tax exempt organization.
c. Office Coffee/Soda Funds:
(1) Fund Purpose. The primary purpose of an office coffee fund is to provide conveniently located coffee or similar substance within an organization at cost.
(2) Fund Approval Authority. Battalion or brigade commander, or staff section head.
(3) Fund Restrictions. A volunteer may purchase supplies at the commissary or post exchange as long as consumed by authorized patrons. If your organization consists primarily of personnel not authorized to use the commissary, you must purchase items from a commercial source.
(4) Member Eligibility. All personnel within the organization.
(5) Money Limitations. This is a non-profit fund. Items must be sold at cost.
(6) Fundraising. Prohibited.
(7) Reporting Requirements. The commander or supervisor must monitor the fund.
2. Other funds
a. Unit, Morale, Welfare, And Recreation (MWR) Fund:
(1) Fund Purpose. The primary purpose is to enhance the quality of life for members of the unit and their families.
(2) Fund Approval Authority. DCA.
(3) Fund Restrictions. All monies earned must be deposited to the unit MWR account within three business days.
(4) Member Eligibility. Individuals in the command or organization.
(5) Money Limitations. There are no dollar limitations on the amount that may be raised in support of the MWR account. MONEY THAT IS DEPOSITED IN THIS ACCOUNT BUT NOT SPENT BY THE END OF THE FISCAL YEAR WILL BE LOST.
(6) Fundraising.
(A) DoD employees (including soldiers) are prohibited from soliciting gifts, on or off-duty, in support of this fund.
(B) Soldiers must be volunteers, off-duty, and out of uniform to fundraise (including PT uniform).
(C) To fundraise on post, units must submit requests through the Community Commander and the owner of any facility that will be utilized for fundraising (e.g. PX manager, Commissary manager). In addition, if the unit wishes to conduct a food sale, it must also obtain permission from Preventive Medicine.
(D) Taxes. As a Nonappropriated Fund Instrumentality, this fund is not required to pay taxes.
b. Private Organizations (POs):
(1) Fund Purpose. Stated in the constitution and bylaws.
(2) Fund Approval Authority. All POs must abide by the requirements of AR 210-22 as administered by the DCA. The president or designated officer (treasurer preferred) must attend an annual training session required by the DCA. The training session will be provided two times per year. All other PO officers are encouraged to attend.
(3) Member Eligibility. The majority of PO membership must be composed of the DoD family.
(4) Fundraising. DCA and the Community Commander are the approval authorities for all requests to fundraise.
(5) Taxes. This fund must comply with all federal, state, and local tax laws.
(6) Insurance. The DCA may require POs to acquire and show proof of insurance before operating on the installation.