B-212418 OM, NOV 21, 1983
Highlights
THE MATCHING DONATION PROGRAM WOULD HAVE TWO MAJOR BENEFITS: COLLEGES AND UNIVERSITIES WOULD RECEIVE SUPPORT. WELLS IS AWARE THAT GAO HAS NO AUTHORITY TO FUND SUCH A PROGRAM BUT SUGGESTS THAT THE APPROPRIATE LEGISLATION BE SOUGHT. GAO'S PRIMARY FUNCTIONS ARE TO CONDUCT AUDITS AND REVIEWS AND TO ISSUE REPORTS AS AN INVESTIGATIVE ARM OF CONGRESS. THE GOVERNMENT'S POLICY IS TO ENCOURAGE PRIVATE CITIZENS AND BUSINESSES TO MAKE CHARITABLE DONATIONS AND CONTRIBUTIONS. ONE OF THE MAJOR MOTIVATIONS FOR PRIVATE FIRMS TO ESTABLISH MATCHING FUND PROGRAMS IS THE CHARITABLE TAX DEDUCTION ALLOWANCE. THE COMBINED FEDERAL CAMPAIGN (CFC) IS AN EXAMPLE OF HOW THE GOVERNMENT FACILITATES CHARITABLE CONTRIBUTIONS.
B-212418 OM, NOV 21, 1983
DIGEST: THE GENERAL ACCOUNTING OFFICE, OFFICE OF THE GENERAL COUNSEL, DOES NOT RECOMMEND THE ADOPTION OF AN EMPLOYEE SUGGESTION TO ESTABLISH A PROGRAM WHERE GAO MATCHES EMPLOYEES' GIFTS TO COLLEGES AND UNIVERSITIES. THE COST OF SUCH A PROGRAM WOULD BE HIGH, THE PROGRAM WOULD BE OUTSIDE THE AGENCY'S FUNCTIONS AND CONGRESS WOULD BE UNLIKELY TO AUTHORIZE FUNDS FOR A PROGRAM OF DIRECT CHARITABLE CONTRIBUTIONS. SUBJECT: EMPLOYEE SUGGESTION NO. 82-38 - B-212418 OM.
TO: SUGGESTION AWARDS ASSISTANT - DARLENE NEAL:
YOU REQUESTED OUR LEGAL OPINION CONCERNING A SUGGESTION BY MR. JOHN V. WELLS THAT THE GENERAL ACCOUNTING OFFICE MATCH EMPLOYEES' CHARITABLE CONTRIBUTIONS TO COLLEGES AND UNIVERSITIES. FOR THE REASONS DISCUSSED BELOW, WE DO NOT RECOMMEND ADOPTION OF THIS SUGGESTION.
MR. WELLS STATES THAT MOST OF THE LARGEST PRIVATE CORPORATIONS MAKE MATCHING GIFTS. ACCORDING TO MR. WELLS, THE MATCHING DONATION PROGRAM WOULD HAVE TWO MAJOR BENEFITS: COLLEGES AND UNIVERSITIES WOULD RECEIVE SUPPORT; AND GAO WOULD GAIN A VALUABLE RECRUITMENT TOOL. MR. WELLS IS AWARE THAT GAO HAS NO AUTHORITY TO FUND SUCH A PROGRAM BUT SUGGESTS THAT THE APPROPRIATE LEGISLATION BE SOUGHT.
WE DO NOT BELIEVE THAT IT WOULD BE APPROPRIATE FOR GAO TO MAKE THIS REQUEST. GAO'S PRIMARY FUNCTIONS ARE TO CONDUCT AUDITS AND REVIEWS AND TO ISSUE REPORTS AS AN INVESTIGATIVE ARM OF CONGRESS. THE PROPOSED DONATIONS DO NOT ADVANCE THESE GOALS.
MOREOVER, WE DO NOT BELIEVE THAT CONGRESS WOULD AUTHORIZE A MATCHING GRANT PROGRAM. FIRST, THE COST OF SUCH A PROGRAM WOULD BE EXTREMELY HIGH. MR. WELLS RECOGNIZES THIS BUT SUGGESTS THAT TO LIMIT THE BUDGETARY IMPACT A CAP COULD BE PLACED ON EITHER THE AMOUNT TO BE MATCHED OR THE TOTAL AMOUNT AVAILABLE. HOWEVER, THESE LIMITATIONS DO NOT ADDRESS THE ADMINISTRATIVE AND LEGAL EXPENSES INHERENT IN A MATCHING GRANT PROGRAM.
SECOND, AND MORE IMPORTANTLY, THE GOVERNMENT'S POLICY IS TO ENCOURAGE PRIVATE CITIZENS AND BUSINESSES TO MAKE CHARITABLE DONATIONS AND CONTRIBUTIONS. ONE OF THE MAJOR MOTIVATIONS FOR PRIVATE FIRMS TO ESTABLISH MATCHING FUND PROGRAMS IS THE CHARITABLE TAX DEDUCTION ALLOWANCE. THROUGH TAX INCENTIVES THE GOVERNMENT SUPPORTS DONATIONS TO INSTITUTES OF HIGHER EDUCATION AS WELL AS OTHER CHARITIES. THE COMBINED FEDERAL CAMPAIGN (CFC) IS AN EXAMPLE OF HOW THE GOVERNMENT FACILITATES CHARITABLE CONTRIBUTIONS. (CFC PROVIDES A CONVENIENT CHANNEL FOR FEDERAL EMPLOYEES TO CONTRIBUTE TO HEALTH AND WELFARE ORGANIZATIONS WITH MINIMAL DISRUPTION OF THE WORKPLACE AND COST TO THE TAXPAYERS.)
WHILE THE GOVERNMENT ENCOURAGES CITIZENS TO SUPPORT CHARITY, FEDERAL FUNDS ARE GENERALLY NOT EXPENDED AS DIRECT CONTRIBUTIONS. FOR EXAMPLE, UNDER THE DEFENSE ACQUISITION REGULATION, CONTRIBUTIONS AND DONATIONS ARE UNALLOWABLE CONTRACT COSTS. DAR 15-205.8. SEE ALSO, 41 C.F.R. SEC. 1- 15.303(10). SUCH COSTS ARE ALSO DISALLOWED IN PROGRAMS ADMINISTERED BY STATE, LOCAL AND FEDERALLY RECOGNIZED INDIAN TRIBAL GOVERNMENTS UNDER FEDERAL GOVERNMENT CONTRACTS. 41 C.F.R. SEC. 1 15.713-3.
THE GOVERNMENT IS RESPONSIBLE FOR SPENDING TAXPAYERS DOLLARS; THEREFORE, DISBURSAL OF FEDERAL FUNDS IS BOUNDED BY CONSTITUTIONAL AND STATUTORY CONSTRAINTS. HENCE, NOT ALL COLLEGES AND UNIVERSITIES WOULD QUALIFY FOR FEDERAL MONIES. CLEARLY, THE GOVERNMENT COULD NOT PROVIDE MATCHING FUNDS TO INSTITUTIONS THAT PRACTICE DISCRIMINATION. THUS, IN VIEW OF FEDERAL POLICIES AND THE COMPLEXITY OF ADMINISTERING A MATCHING GRANT PROGRAM, IT IS HIGHLY UNLIKELY THAT CONGRESS WOULD SUPPORT A PROGRAM OF DIRECT CHARITABLE CONTRIBUTIONS.
FINALLY, THE RELATIONSHIP BETWEEN DONATIONS AND RECRUITMENT IS HYPOTHETICAL. BESIDES, GAO HAS AN EXCELLENT RECRUITMENT AND TRAINING PROGRAM FOR COLLEGE STUDENTS AND OFFERS A WIDE RANGE OF INTERNSHIP AND WORK-STUDY OPPORTUNITIES.
ACCORDINGLY, WE DO NOT BELIEVE THE BENEFITS OF THE PROPOSED PROGRAM WOULD OFFSET ITS COST. FURTHER, THE PROGRAM IS OUTSIDE THE AGENCY'S MANDATE AND WE DO NOT BELIEVE THAT CONGRESS WOULD APPROPRIATE FUNDS FOR SUCH A PROGRAM. FOR THESE REASONS, WE DO NOT RECOMMEND THE ADOPTION OF EMPLOYEE SUGGESTION NO. 82-38.