PURPOSE
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Restores the Community Support Program Standards for Charitable Giving through Payroll Deductions and establishes fundraising threshold for participating umbrella agencies.

REFERENCE
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June 2, 1998 Board Order, Synopsis 78. Government Code 1157.2 Section 501(c )(3) Internal Revenue Code Senate Bill 1256 (Chapter 452, Statutes of 1991)

POLICY
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To support local nonprofit charitable organizations which provide a broad range of health and human care services to the residents of Los Angeles County which reflect the cultural and ethnic diversity and the under-served areas impacting the status of men, women and children. This policy sets forth participating agency standards, reporting requirements for audit purposes, campaign requirements to comply with all laws covering qualified tax-exempt organizations, payroll deductions for both flat and percentage deductions, and periodic review by the Auditor-Controller, CAO, Labor Management Committee or other representative. COUNTY OF LOS ANGELES WORKPLACE GIVING PROGRAM STANDARDS County Campaign and Payroll Deductions 1. AUTHORITY Government Code §1157.2 enables the Los Angeles County Board of Supervisors, under such regulations as it may prescribe, to allow employees to authorize deductions to be made from their salaries or wages for their payment of contributions of designated sums to bona fide charitable local organizations or to nonprofit California corporations which are compelled by their laws to make and which do expend such sums solely by the making of contributions to charitable organizations qualified under Section §501 (c) (3) of the U. S. Internal Revenue Code of 1974; Senate Bill 1256 (Watson) (Chapter 452, Statutes of 1991) amending Government Code Section §26227 [which] allows a County Board of Supervisors to authorize work time activities related to Workplace Giving Programs and charitable giving activities; and the Los Angeles County Board of Supervisors approved County Workplace Giving Program Standards contained herein. 2. PROGRAM IN MISSION To support local nonprofit charitable organizations which provide a broad range of health and human care services to the residents of Los Angeles County which reflect the cultural and ethnic diversity of the region, and the underserved areas impacting the status of men, women, and children. To administer a voluntary cost-effective program that maximizes employee donor choices and maximizes dollar distribution to agencies providing direct services to local residents in Los Angeles County communities. 3. COMMITTEE ON WORKPLACE GIVING The Labor-Management Advisory Committee, authorized by the County Board of Supervisors shall appoint a Committee on Workplace Giving which will advise the Board of Supervisors on County Workplace Giving Campaign policies and campaign action plans. 4. DEFINITIONS: COUNTY CAMPAIGN - FUND DISTRIBUTION AGENCY The term "Fund Distribution Agency" means a nonprofit California corporation, 501 (c) (3) which distributes funds to member agencies who provide health and human care services to the residents of Los Angeles County, reflecting the cultural and ethnic diversity of the region and the underserved areas impacting the status of men, women, and children. Fund Distribution Agencies shall distribute employee dollars raised to a minimum of fifteen local nonprofit agencies serving Los Angeles County. Parent agencies and not their affiliates will be counted in local agency totals. Branches, chapters or such subunits of a parent agency will be counted as a single unit within the membership structure of a Fund Distribution Agency. Fund Distribution Agency "local agency" must be agencies whose principle service function is provided to the culturally diverse residents of Los Angeles County. This criterion intended to ensure that the widest and most diverse range of services possible is provided to the residents of Los Angeles County. COUNTY CAMPAIGN - INDEPENDENT AGENCIES The term "Independent Agency" means a nonprofit California corporation, 501 (c) (3) which raised $25,000 locally and provides services to local and diverse communities in Los Angeles County: These agencies (donor direct designated agencies) would receive 90% of the employee direct designation dollar (processed through the County FDA payroll deduction process) with 10% representing a processing fee required by the Fund Distribution Agency. 5. FUND DISTRIBUTION AGENCY CAMPAIGN STANDARDS A. Record of Fund-Raising Fund Distribution Agencies must have raised $100,000 locally and must raise at least $50,000 (on-going) through a combined effort of County employee cash contributions and County employee payroll deductions. A new Fund Distribution Agency may meet this two-part requirement by having raised at least $100,000 annually in local campaign and thereafter. FDA's must also raise at least $50,000 in a single County employee campaign, to be achieved by the second year of campaign participation, or be deemed ineligible to participate in future County campaigns. B. Administrative Costs The Fund Distribution Agency's administrative/marketing/campaign costs may not exceed twenty percent of the County employee donor dollars. Therefore, Fund Distribution Agencies are required to distribute not less than eighty percent of the dollars received from the County Employee Campaign to local nonprofit agencies which meet the County Workplace Giving Program criteria and mission. The County requires a maximum of ten percent administrative costs related to County employee direct designations (Independent Agencies), or a requirement that no less than ninety percent of the dollars received from the County Employee Campaign for direct designations (through Independent Agencies) be distributed directly to the designated nonprofit agency through the selected host Fund Distribution Agency. These administrative costs requirements will provide for the maximum dollar distribution to agencies providing direct community service. C. Fund Distribution Agency Report Requirements The Fund Distribution Agency must provide copies of its Annual Reports and audited financial statements for the previous five-year period and must: - Provide a document copy of the organization's 501 (c) (3) nonprofit status. - Provide a copy of the prior year's IRS Form 990, completed and signed. - Provide a listing of the organization's Board of Directors and Officers. - Provide a detailed report on the allocation proves for designated and undesignated dollars. - Provide information on any changes to the above reporting and campaign requirements to the Labor-Management Advisory Committee, in writing, within 30 days of the change. A. Fund Distribution Agency Campaign Requirements (Other) Fund Distribution Agency shall comply with the following County campaign policies and procedures: - Transmit donor dollars, as designated by County employees, to organizations qualified as tax-exempt organizations under Section §501 (c) (3) of the U. S. Internal Revenue Code of 1974, on a monthly basis or an authorized allocation process. - Provide campaign educational/informational material for the County's campaign, as requested by the Labor-Management Advisory Committee. - Provide appropriate funding for related County campaign expenses, as deemed necessary and appropriate by the Labor-Management Advisory Committee. - Comply with all other provisions deemed necessary by the Los Angeles County Board of Supervisors, Chief Administrative Officer, the County Auditor-Controller and the Labor-Management Advisory Committee. 1. EMPLOYEE PAYROLL DEDUCTION Any County officer or employee may authorize payroll deductions from his/her wages for payment of charitable contributions to eligible nonprofit agencies, as approved by the Board of Supervisors. Payroll deductions for such contributions shall include the following: A. Employee authorization must be in writing upon the form prescribed by the County Auditor-Controller. B. Payroll deductions may be authorized at such percentage of salary per pay period as printed on the prescribed form. C. An authorization or cancellation shall be effective for that payroll period for which it is received by the Auditor-Controller. Adequate time for processing a new deduction or cancellation must be provided. 7. EMPLOYEE DIRECT DESIGNATIONS TO INDEPENDENT AGENCIES Employees may make direct designations to any eligible nonprofit organization of their choice, or Independent Agency, by submitting the prescribed direct designation form to their departmental coordinators or a host Fund Distribution Agency. A. Required Payroll Deduction Authority: Employees will submit payroll deduction cards (identifying the deduction percentage amount) and direct designation forms (identifying the selected agency/agencies and direct designation amounts) to their departmental coordinators. B. One-Time Cash/Check Donation: Employees will submit a check/cash to their Departmental Campaign Coordinator identifying the Fund Distribution Agency and designated agency agencies and amount(s) selected. Fund Distribution Agencies (FDA) will maintain an informational system on employee direct designations and prepare a County Direct Designation Report, annually. FDA's will retain only ten percent of the employee donation for administrative handling fees and will forward ninety percent to the designated agency. 8. FUND DISTRIBUTION AGENCY PERIODIC REVIEW Payroll deduction privileges shall be reviewed annually by the County Labor-Management Advisory Committee and the Chief Administrative Office to determine continued compliance with Program criteria. 9. FUND DISTRIBUTION AGENCY TERMS FOR CAMPAIGN INELIGIBILITY Fund Distribution Agencies (FDA) shall be deemed ineligible for continued campaign participation as a result of any of the following conditions: A. FDA exceeds the twenty percent administrative, marketing and campaign funding requirement. B. FDA is determined to have less than 15 local member agencies. C. FDA raises less than $100,000 locally (and on-going) and raises less than $50,000 during the previous County Employee campaign, through a combined fund-raising effort of cash contributions and County employee payroll donations. 10. INDEPENDENT AGENCY INELIGIBILITY Independent Agencies (Employee donor direct designated agencies) shall be deemed ineligible for direct designation status through an approved Fund Distribution Agency as a result of any of the following conditions: A. Independent Agency exceeds a twenty percent administrative, marketing and campaign funding level. B. Independent Agency raises less than $25,000 during the previous local campaign. Authorization and Policies Approved by the Board of Supervisors 1. Authorize use of County funds and property by County departments, within each department's approved budget allocation, in connection with the County's Workplace Giving Program and campaign. 2. Authorize, as part of the Workplace Giving Program, direct solicitation of employees, on a voluntary basis, by County and /or representatives of Fund Distribution Agencies during working hours, before or after official working hours, during breaks or lunch hours and during other nonworking hours, as determined by each department. Attendance at or participation in work time solicitation of employees in any department or unit within a department shall be strictly voluntary. 3. Authorize the assignment of County officers and employees, on a voluntary basis, to attend or assist in the administration of Program activities during working hours. 4. Reaffirm the policy that all employee participation in the Program and /or Program activities shall be on a strictly voluntary basis. An employee's decision on whether to participate shall not be a basis, directly or indirectly, for any adverse employment action. 5. Direct that employees be notified, in writing, of the opportunity to participate in charitable giving activities through the Workplace Giving Program and of the Board's policy that all participation in the Program is strictly voluntary and has significant and broad union and community support. 6. Authorize the Labor-Management Advisory Committee, Committee on Workplace Giving to recommend County campaign time frames and strategies and to develop general campaign program guidelines to assist County department heads and departmental coordinators. 7. Authorize department heads to implement Workplace Giving Program campaigns as determined by each department.

RESPONSIBLE DEPARTMENT
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Chief Administrative Office

DATE ISSUED/SUNSET DATE
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Issue Date: June 2, 1998	Sunset Date: June 2, 2002
Review Date: January 16, 2003	Sunset Date: January 16, 2007