After months of silence the Combined Federal Campaign has issued guidance on how charities participating in this workplace-giving program for federal employees should implement its requirement that they certify they do not knowingly employ persons on various government terrorist watch lists. The CFC Memorandum 2004-12 provides background information and clarification, but does not change the interpretation that led a dozen nonprofits to file suit to block the policy. The CFC guidance, issued on Nov. 24, cites the Treasury Department's Voluntary Best Practice guidelines and Executive Order 13224 as authority for its action. But the Treasury guidelines themselves have been criticized for being overbroad, ineffective at combating terrorism, and inconsistent with existing law, and OMB Watch has called for their withdrawal. OMB Watch also sent a letter Sept. 7 to Mara Patermaster, the head of the CFC, asking a series of questions about how to implement the new requirements. While Patermaster did not respond, this memo provides some of the answers to questions we had. However, it does not resolve the fundamental problems with the list-checking requirement. The memo modifies the requirements in the 2005 CFC application to only checking two government watch lists -- one operated by the Treasury Department (the Office of Foreign Assets Control Specially Designated Nationals List) and the other by the State Department (the Terrorist Exclusion List). CFC "continues to encourage" organizations to also consult a United Nations list, but it is not required. The memorandum states that the list-checking requirement applies to employees, not volunteers, consultants or vendors. It also applies to direct contributions to any organization, but does not include non-cash contributions, and does not include tracking the regranting of such contributions. The memo indicates it "does not intend...to encompass the procurement of goods or services... unless the organization has reason to believe that a vendor of such goods or services commits or supports terrorist acts." This caveat is not described further. If a match is found at the time of submitting the CFC application — even if it is an incorrect match — the group "may not complete the certification and will be denied participation in the CFC." If at a time subsequent to certification, the group finds a person it employs or an organization it contributes to on the watch lists, it must notify CFC "immediately." CFC will take "appropriate" steps, which could include suspension from the program, retraction of funds already disbursed, and notifying "investigative and/or enforcement authorities." The memo does not provide information on how often to check the lists, but clearly indicates that the list must be checked when applying. The memo is less clear when it describes what it means by "knowingly" employ individuals or contribute funds to groups on the watch lists. The memo creates an ambiguous standard where CFC "determines that an organization in fact has exercised appropriate care to check the lists." CFC continues: "Intentional ignorance... is not an excuse for not knowing...." OMB Watch is among the plaintiffs in the lawsuit challenging the policy. For more information see the Nov. 16 OMB Watcher. A full analysis of the guidance will be released soon.