FAMILY READINESS GROUPS:
LEGAL AND FINANCIAL
ISSUES
10 April 2010
COL Michael J. McKenna
Staff Judge Advocate
Joint Force Headquarters
Wisconsin
FRG…Formal Definition
Definition.
An
officially
commandsponsored organization of family members,
volunteers and soldiers belonging to a unit,
that together provide an avenue of mutual
support and assistance, and a network of
communications among family members,
the chain of command and community
resources.
Goal. One major goal of the FRG is to
help family members feel that they are an
integral part of the Army family.
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Mission Statement from AR 608-1
FAMILY READINESS GROUPS
Mission statement. FRGS will provide
mutual support and assistance, a network
of
communications
among
family
members, the chain of command and
community resources. FRGs wil assist unit
commanders in meeting military and
personal deployment preparedness and
enhance the family readiness of the unit’s
soldiers and families. AR 608-1 App. J-1
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FRG Mission
 An extension of the unit providing command
information
 Mutual support between command and FRG
membership
 Advocate efficient use of community
resources
 Help families solve problems at the lowest
level
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AR 608-1, § J-2.c.
FRG…What kind of entity?
 FRGs are official DA programs
 FRGs are subject to statutes & regulations on
official activities
 Includes JER
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AR 608-1, § J-8
 As a DA activity, FRGs
MAY NOT:
- Engage in External Fundraising
- Solicit Gifts & Donations
 In response to an inquiry, may inform
potential donors of the needs of the Army in
relation to assisting families.
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AR 608-1, § J-7.e.
 FRGs are not established to:
1. Raise Funds
2. Solicit Donations, or
3. Manage large sums of money
 FRGs not equipped to:
1. Manage tax &
2. Accounting issues
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FRGs-Resources
1. Can utilize government resources for their
mission essential activities.
2. Can utilize volunteer efforts.
3. Can utilize “informal” funds with
limitations.
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AR 608-1, § J-7.e.
FRG “informal” fund limitations
 May raise no more than $10,000 in one calendar year
 May not accept more than $1,000 per donation
 Funds must be earmarked for expenditure
 FRG must submit a written fundraising request to the
Commander
 A fundraising request must specifically itemize how
funds will be used
 Commander must approve fundraising
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Funds Management
 Informal Fund is:


Benefit of all FRG members
IS NOT





Not designed to generate profits
Not a cup and flower fund – not used to buy baby
gifts, wedding gifts, sympathy gifts
Is not a Private Organization
Is not for the purpose of fund raising
Is not to be used for military activities
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Authorized Use of FRG “informal” funds
 Create FRG newsletters that contain:
1. Predominantly unofficial information
2. Purely social activities
 Examples:
- Parties
- Social outings
- Volunteer recognition
- Picnics
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Unauthorized Use of FRG Funds
CAN NOT:
 Augmenting unit informal funds
 Purchasing items or services that can be paid
for with appropriated funds
 Purchasing traditional military gifts
 Funding the unit ball
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FRG Informal Funds Management
 Commanders must appoint a treasurer
 Must be different person than FRG leader
 Cannot be a military member

Treasurer must


Submit monthly report to commander
Account for all funds in and out of the account
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Raffles
Raffles are Gambling if consisting of:
1. Consideration
2. A Game of Chance
3. Offering of a Prize
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Raffles
 JER § 2-302(b) prohibits gambling on federal
property & requires compliance with state law
 Wis. Stat. § 563.90
 License is required to conduct a raffle
 WING is not a qualifying agency eligible to
obtain gambling license
 Raffles are a form of gambling
 Gambling is prohibited on state property
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Authorized Fundraisers
 Fundraising by organizations composed
primarily of DOD or DA employees and their
dependents when fundraising among their
own members or dependants for the benefit
of their own welfare funds.
 Fundraising must be approved by the
Commander after consultation with the ethics
counselor.
JER § 3-210(a)(6)
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Fundraising
 Fundraising must be for the organization’s
informal fund
 Fundraising not allowed for:
1. private charity
2. military member
3. similar cause
 Commander approval required
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Fundraising in a Private Capacity
 FRG members in an off-duty status & in a
private capacity may fundraise for private
causes or non-Federal entities
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Types of Volunteers
 Statutory Volunteers; 18 U.S.C. § 1588(a)(3)(A)
– donate services to the Guard FRG however receive
reimbursement for incidental expenses
 Travel pay for training events
 Child Care reimbursement while conducting training
or preparation for unit events
 Telephone reimbursement for calling tree
responsibilities
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Types of Volunteers
 Statutory Volunteers

May not receive reimbursement if they are
participating in a unit fund raising event

If you are volunteering for a private organization,
even if the event is in support of a guard unit –
you may not claim/ or receive reimbursement for
this event
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Types of Volunteers
 Gratuitous Service

Provide service without the expectation of
receiving any compensation or reimbursement

Will agree in writing to waive any and all
claims against the Government that may result
during their volunteer time
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FRG
 Governed by service regulations.
 Receives official support and endorsement by
the command.
 Receives appropriated Gov’t funding.
 FRG volunteers are “statutory volunteers”
under 10 U.S.C. § 1588.
 Statutory volunteers are deemed Gov’t
employees
Fundraising…key issues
 Fundraising is like alcohol!
 Almost everyone likes it.
 Some people never get enough.
 It is generally legal but presents many
problems.
 It causes people to do things to their coworkers or friends that they would not
otherwise do.
Fundraising
 An FRG can not supplement its official funding.
 Article I, Section 9, Clause 7, U.S. Constitution:
 “No money shall be drawn from the treasury except in
consequence of appropriations made by law.”
 31 U.S.C. § 3302(b) – Miscellaneous Receipts
 Bottom Line – you can only spend what Congress
gave you!
 The federal Gov’t does not beg for money!
Fundraising
 FRG (government) can accept certain things:


Volunteer services under 10 U.S.C. § 1588.
Gifts, with proper approval and statutory
authority.
 Money – usually not. Even if yes, must
deposit in the U.S. Treasury.
Unofficial FRG
 Technically not an FRG.
 Is considered a private organization or “NFE.”
 Consists of . . . anybody.
 Privately funded – no government funds.
 Gets no official support or endorsement.
Unofficial FRGs
 Unofficial FRGs incorrectly perceive
themselves as an official arm of the WIARNG.
 Unofficial FRGs request official support from
the WIARNG:





Equipment
Personnel
Facilities
Official endorsement and support
Special access to WING members
Fundraising in a
Personal Capacity
 A DoD employee may engage in fundraising in a
personal capacity.
 Prohibitions-the employee cannot:
Personally solicit funds or other support from
subordinates,
• Personally solicit funds or other support from DoD
contractors, OR
• Use (or permit the use of) his or her government title or
position or authority to further the fundraising effort (but
using or allowing others to use your military rank and
branch of service is permissible).
5 CFR 2635.808(c)
•
Summary
 FRG may consist of 2 groups:
- Official FRG
- Unofficial FRG
 Rules for two groups are vastly different.
 Need to remain mindful about what group is doing
what when.


Official FRG can’t fundraise or supplement government
funds.
Unofficial FRG can do what it wants but official support
is limited.
Questions?
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