Fundraising
Ethics Counselor’s Deskbook
June 2020
12
b. Contributions must be truly voluntary. The DoD Directive guarantees freedom
of choice to give or not to give, and guarantees confidentiality of donation
decision. Be alert for undue command pressure to contribute. Requests from a
senior to a junior, particularly if they are in the same chain of command,
inherently may be perceived as coercive. Tracking and requiring that 100 per cent
of the personnel are contacted is permissible; tracking contributions is not. Watch
for subtle actions like donor badges or ubiquitous awards that identify non-
contributors. See 5 C.F.R. § 950.108, Preventing coercive activity.
c. Fundraising events such as car washes, bake sales, and races are permitted by 5
C.F.R. § 950.602, Solicitation methods. If a special fundraising event is
approved, the donor must be given the option of designating a participating
organization or the donor must advised that the proceeds will be donated to the
CFC as an undesignated contribution. Note that unit fundraising for CFC should
be similarly broadly aimed. See SOCO Advisory 09-07 on CFC issues generally.
d. Lotteries and raffles are permitted by 5 C.F.R. § 950.602 (b), when in
compliance with gambling regulations and approved by agency head in
accordance with agency regulations. Chances to win must be disassociated from
the 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. (See guidance on
gambling, V.A.5., below, in this section.)
e. Use of appropriated funds is authorized, but limited. Appropriated funds may
be used when the proper authority reasonably determines that the proposed
expenditure is logically connected to the appropriation's purpose, and that no
statute prevents it. The use of appropriated funds is usually limited to expenses
related to kick-offs, victory events, awards, and other events to build support for
the CFC. The use of appropriated funds for refreshments or personal gifts (other
than campaign worker recognition awards or prizes) is not authorized. Prizes
must comport to fiscal law. See paragraph 4.4. of DoDI 5035.01. The
expenditure of appropriated funds for any other item or activity that is not
essential to support the CFC is not authorized. Appropriated funds cannot be used
to conduct fundraising events. In making the determination, managers should be
mindful of all the surrounding circumstances, including the amount of the
proposed expenditure, the benefit expected to be gained, the importance to the
mission served by the appropriation, prior Departmental practice, and possible