[Federal Register Volume 60, Number 104 (Wednesday, May 31, 1995)]
[Rules and Regulations]
[Pages 28355-28356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13236]



=======================================================================
-----------------------------------------------------------------------

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Part 2544

RIN 3045-AA13


Solicitation and Acceptance of Donated Property and Services.

AGENCY: Corporation for National and Community Service.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Corporation for National Service (the Corporation) is 
issuing uniform rules and regulations regarding the solicitation and 
acceptance or rejection of property and services. Pursuant to the 
National and Community Service Act of 1990, as amended, the Corporation 
has the authority to solicit and accept donations. The Corporation is 
adopting these rules and regulations to eliminate the possibility of 
confusion for individuals who wish to donate property or services to 
the Corporation. In addition, the Corporation wants to insure that no 
situations arise involving a real or apparent conflict of interest with 
respect to a donation or an individual or group who offers a donation.

EFFECTIVE DATE: May 31, 1995.
FOR FURTHER INFORMATION CONTACT: Stewart Davis, Office of the General 
Counsel, The Corporation for National Service, 1201 New York Ave. NW., 
Washington DC, 20525. (202) 606-5000 x. 265.

SUPPLEMENTARY INFORMATION: The Corporation published in the Federal 
Register on April 7, 1995 (60 FR 17761) a notice of proposed rule 
making on the Solicitation and Acceptance of Donated Property and 
Services. The proposed rule established uniform rules and regulations 
regarding the solicitation and acceptance or rejection of property and 
services. The Corporation did not receive any comments in response to 
the April 7, 1995, notice. Accordingly, the Corporation is submitting 
the regulations as a Final Rule.

Miscellaneous Requirements

    The Corporation has determined that this is not a ``significant 
regulatory action'' within the meaning of Executive Order 12866 and 
accordingly this rule has not been reviewed by the Office of Management 
and Budget. This rule will not have a substantial impact on a 
significant number of small entities, thus a regulatory flexibility 
analysis has not been prepared pursuant to the Regulatory Flexibility 
Act, 5 U.S.C. 601 et seq. Because this rule does not involve collection 
of information or impose record keeping requirements, the Paperwork 
Reduction Act of 1980 does not apply. The Corporation has determined 
that this rule does not have sufficient federalism implications to 
warrant the preparation of a Federalism Assessment pursuant to 
Executive Order 12612. In addition, the Corporation has determined that 
implementation of this action will not have any significant impact on 
the quality of the human environment pursuant to the National 
Environmental Policy Act.

List of Subjects in 45 CFR Part 2544

    Administrative practice and procedure, Gifts to government, 
Government property.

    Dated: May 24, 1995.
Terry Russell,
General Counsel, Corporation for National Service.
    Accordingly, as set forth in the preamble, the Corporation amends 
title 45, chapter XXV of the Code of Federal Regulations by adding part 
2544 to read as follows:
PART 2544--SOLICITATION AND ACCEPTANCE OF DONATIONS

Sec.
2544.100  What is the purpose of this part?
2544.105  What is the legal authority for soliciting and accepting 
donations to the Corporation?

2544.110  What definitions apply to terms used in this part?
2544.115  Who may offer a donation?
2544.120  What personal services from a volunteer may be solicited 
and accepted?
2544.125  Who has the authority to solicit and accept or reject a 
donation?
2544.130  How will the Corporation determine whether to solicit or 
accept a donation?
2544.135  How should an offer of a donation be made?
2544.140  How will the Corporation accept or reject an offer?
2544.145  What will be done with property that is not accepted?
2544.150  How will accepted donations be recorded and used?

    Authority: 42 U.S.C. 12501 et seq.


Sec. 2544.100  What is the purpose of this part?

    This part establishes rules to ensure that the solicitation, 
acceptance, holding, administration, and use of property and services 
donated to the Corporation:
    (a) Will not reflect unfavorably upon the ability of the 
Corporation or its officers and employees, to carry out their official 
duties and responsibilities in a fair and objective manner; and
    (b) Will not compromise the integrity of the Corporation's programs 
or its officers and employees involved in such programs.


Sec. 2544.105  What is the legal authority for soliciting and accepting 
donations to the Corporation?

    Section 196(a) of the National and Community Service Act of 1990, 
as amended (42 U.S.C. 12651g(a)).


Sec. 2544.110  What definitions apply to terms used in this part?

    (a) Donation means a transfer of money, property, or services to or 
for the use of the Corporation by gift, devise, bequest, or other 
means.
    (b) Solicitation means a request for a donation.
    (c) Volunteer means an individual who donates his/her personal 
service to the Corporation to assist the Corporation in carrying out 
its duties under the national service laws, but who is not a 
participant in a program funded or sponsored by the Corporation under 
the National and Community Service Act of 1990, as amended. Such 
individual is not subject to provisions of law related to Federal 
employment, including those relating to hours of work, rates of 
compensation, leave, unemployment compensation and Federal employee 
benefits, except that--
    (1) Volunteers will be considered Federal employees for the purpose 
of the tort claims provisions of 28 U.S.C. chapter 171; [[Page 28356]] 
    (2) Volunteers will be considered Federal employees for the 
purposes of 5 U.S.C. chapter 81, subchapter I, relating to compensation 
to Federal employees for work injuries; and
    (3) Volunteers will be considered special Government employees for 
the purpose of ethics and public integrity under the provisions of 18 
U.S.C. chapter 11, part I, and 5 CFR chapter XVI, subchapter B.
    (d) Inherently governmental function means any activity that is so 
intimately related to the public interest as to mandate performance by 
an officer or employee of the Federal Government, including an activity 
that requires either the exercise of discretion in applying the 
authority of the Government or the use of value judgment in making a 
decision for the Government.


Sec. 2544.115  Who may offer a donation?

    Anyone, including an individual, group of individuals, 
organization, corporation, or association may offer a donation to the 
Corporation.


Sec. 2544.120  What personal services from a volunteer may be solicited 
and accepted?

    A donation in the form of personal services from a volunteer may be 
solicited and accepted to assist the Corporation in carrying out its 
duties. However, volunteers may not perform an inherently governmental 
function.


Sec. 2544.125  Who has the authority to solicit and accept or reject a 
donation?

    The Chief Executive Officer (CEO) of the Corporation has the 
authority to solicit, accept, or reject a donation offered to the 
Corporation and to make the determinations described in Sec. 2544.130 
(c) and (d). The CEO may delegate this authority in writing to other 
officials of the Corporation.


Sec. 2544.130  How will the Corporation determine whether to solicit or 
accept a donation?

    (a) The Corporation will solicit and accept a donation only for the 
purpose of furthering the mission and goals of the Corporation.
    (b) In order to be accepted, the donation must be economically 
advantageous to the Corporation, considering foreseeable expenditures 
for matters such as storage, transportation, maintenance, and 
distribution.
    (c) An official or employee of the Corporation will not solicit or 
accept a donation if the solicitation or acceptance would present a 
real or apparent conflict of interest. An apparent conflict of interest 
is presented if the solicitation or acceptance would raise a question 
in the mind of a reasonable person, with knowledge of the relevant 
facts, about the integrity of the Corporation's programs or operations.
    (d) The Corporation will determine whether a conflict of interest 
exists by considering any business relationship, financial interest, 
litigation, or other factors that may indicate such a conflict. 
Donations of property or voluntary services may not be solicited or 
accepted from a source which:
    (1) Is a party to a grant or contract with the Corporation or is 
seeking to do business with the Corporation;
    (2) Has pecuniary interests that may be substantially affected by 
performance or nonperformance of the Corporation; or
    (3) Is an organization a majority of whose members are described in 
paragraphs (d)(1) and (2) of this section.
    (e) Any solicitation or offer of a donation that raises a question 
or concern of a potential, real, or apparent conflict of interest will 
be forwarded to the Corporation's Designated Ethics Official for an 
opinion.


Sec. 2544.135  How should an offer of a donation be made?

    (a) In general, an offer of donation should be made by providing a 
letter of tender that offers a donation. The letter should be directed 
to an official authorized to accept donations, describe the property or 
service offered, and specify any purpose for, or condition on, the use 
of the donation.
    (b) If an offer is made orally, the Corporation will send a letter 
of acknowledgment to the offeror. If the donor is anonymous, the 
Corporation will prepare a memorandum to the file acknowledging receipt 
of a tendered donation and describing the donation including any 
special terms or conditions.
    (c) Only those employees or officials with expressed notice of 
authority may accept donations on behalf of the Corporation. If an 
offer is directed to an unauthorized employee or official of the 
Corporation, that person must immediately forward the offer to an 
appropriate official for disposition.


Sec. 2544.140  How will the Corporation accept or reject an offer?

    (a) In general, the Corporation will respond to an offer of a 
donation in writing and include in the response:
    (1) An acknowledgment of receipt of the offer;
    (2) A brief description of the offer and any purpose or condition 
that the offeror specified for the use of the donation;
    (3) A statement either accepting or rejecting the donation; and
    (4) A statement informing the donor that any acceptance of services 
or property can not be used in any manner, directly or indirectly, that 
endorses the donor's products or services or appears to benefit the 
financial interests or business goals of the donor.
    (b) If a purpose or condition for the use of the donation specified 
by the offeror can not be accommodated, the Corporation may request the 
offeror to modify the terms of the donation.


Sec. 2544.145  What will be done with property that is not accepted?

    In general, property offered to the Corporation but not accepted 
will be returned to the offeror. If the offeror is unknown or the 
donation would spoil if returned, the property will either be disposed 
of in accordance with Federal Property Management regulations (41 CFR 
chapter 101) or given to local charities determined by the Corporation.


Sec. 2544.150  How will accepted donations be recorded and used?

    (a) All accepted donations of money and other property will be 
reported to the Chief Financial Officer (CFO) of the Corporation for 
recording and appropriate disposition.
    (b) All donations of personal services of a volunteer will be 
reported to the CFO and to the Personnel Division of the Corporation 
for processing and documentation.
    (c) Donations not designated for a particular purpose will be used 
for an authorized purpose described in Sec. 2544.125.
    (d) Property will be used as nearly as possible in accordance with 
the terms of the donation. If no terms are specified, or the property 
can no longer be used for its original purpose, the property will be 
converted to another authorized use or sold in accordance with Federal 
regulations. The proceeds of the sale will be used for an authorized 
purpose described in Sec. 2544.125.
[FR Doc. 95-13236 Filed 5-30-95; 8:45 am]
BILLING CODE 6050-28-P