over nonappropriated fund instrumentalities. Private organizations are not entitled to sovereign immunities and privileges accorded to nonappropriated fund instrumentalities. Their operation is of interest and concern to the Department of Defense because of their: (1) Location on DoD installations; (2) Relationships with elements of both the Federal and private sectors;

(3) Activities in support of certain recognized programs being conducted for the benefit of members of the DoD family; and

(4) Responsibilities as employers of U.S. citizens and other personnel.

(b) Specific policy applicable to all types of private organizations:

(1) A private organization normally will not utilize in its title or letterhead (1) the name or seal of the Department of Defense or the acronym "DoD;" (ii) the name, abbreviation, or seal of any Military Department or Military Service; or (iii) the seal, insignia, or other identifying device of the local installation. However, Heads of DoD Components may authorize exceptions if clarity of identification is necessary, provided official DoD sponsorship or endorsement is neither stated nor implied.

(2) Activities of private organizations will not in any way prejudice or discredit DoD Components or other agencies of the Federal Government.

(3) A private organization will not engage in activities which compete with those of any nonappropriated fund Instrumentality on a DoD installation.

(4) Discrimination with regard to race, color, marital status, age, religion, national origin, lawful political affiliation, labor organization membership, physical handicap, or sex, will not be permitted in employment practices 32 CFR part 191. Applicable laws with respect to labor standards for employment will be observed.

(5) Membership discrimination based on race, color, national origin or sex will not be permitted. This will not prohibit, however, the establishment of cultural or ethnic private organizations, providing membership is not restricted or discriminatory on the above basis.

(6) Neither appropriated fund activities nor nonappropriated fund instru

mentalities shall assert any claim to the assets or incur or assume any obligation of any private organization except as may possibly arise out of contractual relationships. Notwithstanding the foregoing, property abandoned by a private organization upon or after its disestablishment, or donated by it to the installation, may be acquired by the DoD installation under the terms of existing DoD policy on these matters and consistent with the laws applicable to that installation.

(7) Adequate insurance, if appropriate, will be secured in order to protect against public liability and property damage claims or other legal actions that may arise as a result of activities of the organization or one or more of its members acting in its behalf. Since there is no direct, vested interest of the Federal Government or any of its instrumentalities in the assets of a private organization, the direct protection of organizational assets, such as through fidelity or fire insurance, is the responsibility of each private organization's membership.

(8) Guidance on sources of income to private organizations will be as follows:

(i) Except for minimal logistical support authorized in accordance with § 212.6 and the sources of income and support authorized those private organizations referenced in the text of this part, private organizations will be generally self-sustaining, primarily through dues, contributions, service charges, fees, or special assessment of members. There will be no direct financial assistance to a private organization from a nonappropriated fund instrumentality in the form of contributions, dividends, or other donations of monies or other assets.

(ii) Private organizations will not engage in resale activities except through (A) thrift shop sales of used clothing and used merchandise; (B) museum shop sales of items related to museum activities; or (C) occasional sales for fund-raising purposes, such as raffles, dances, or carnivals, as approved by Heads of DoD Components or their designees.

(1) Only that merchandise which is listed in DoD Directive 1330.91 will be offered during such sales within the continental United States (CONUS), and in no case should sales at any DoD installation be on a frequent or continuing basis.

(2) Heads of DoD Components, or their designees, may approve exceptions to the above restrictions, providing (i) military exchanges or other nonappropriated fund instrumentalities cannot be responsive to the particular resale requirement; and (ii) merchandise is sold only to members and is directly related to the purpose and function of the private organization.

(9) All laws governing comparable private sector activities will be examined and the need for compliance by the private organization therewith determined.

(c) In addition to the foregoing policy, affiliated and independent private organizations will comply with the following:

(1) The nature, function and objectives of the local private organization will be delineated in writing and submitted for the approval of the head of the DoD installation. These written provisions will be in the form of a duly prepared constitution, by-laws, charter, articles of agreement, or other authorization documents acceptable to the membership. Documentation will also provide for:

(i) Establishment of local membership eligibility, which will be primarily for members of the DoD family.

(ii) Designation of management responsibilities, to include the accountability for assets, satisfaction of liabilities, disposition of any residual assets upon dissolution, and otherwise assuring responsible financial management.

(iii) An understanding by all members as to whether they are personally liable if the assets are insufficient to discharge all liabilities. (Also, see paragraph (b)(9) of this section).

(2) In reviewing the above documentation and during periodic review of private organizations, activities that

1 Copies may be obtained, if needed, from the U.S. Naval Publications and Forms Center, 5801 Tabor Avenue, Philadelphia, PA 19120; Attention: Code 301.

result in a monetary gain to the membership, either individually or collectively, will be carefully considered by the head of the DoD installation.

(i) Income will not accrue to individual members, except through wages and salaries as employees of the private organization or through remuneration for services rendered, and will be derived primarily for the purpose of offsetting expenses of operation, which may include competitive awards or charitable contributions contemplated by the organization.

(ii) However, the head of the DoD installation may approve the operation of such a private organization as an investment club on the installation, providing compliance with all other policy provisions outlined above is required.

(3) Type 2 or Type 3 private organizations may be discontinued or dissolved upon determination of its membership or upon determination by the head of a DoD installation to withdraw authorization to operate on the installation.

§ 212.5 Responsibilities.

(a) The Assistant Secretary of Defense (Manpower, Reserve Affairs and Logistics) (ASD(MRA&L)) is responsible for all policy matters related to the organization and monitoring of private organizations, not otherwise delineated in referenced issuances. Coordination of private organization matters will be accomplished with DoD Components through normal staff procedures.

(b) DoD Components will assure implementation of this Instruction and compliance with its provisions. Specifically, Heads of DoD Components, or their designees, will:

(1) Maintain cognizance over all private organizations located on the installations, facilities, or activities for which responsible, including their initial identification and classification, and

(2) Conduct a periodic review of each private organization in order to:

(i) Insure that the membership provisions and purposes for which created still apply, thereby justifying continuance. Any revisions to the conditions under which originally established will necessitate further review, documentation and approval action for continued recognition;

(ii) Determine conditions under which an audit of the funds of the private organization would be appropriate as part of an official inquiry designed to preserve the best interests of the United States, based on DoD Instruction 7600.6.1

(iii) Furnish reports or other information to the ASD(MRA&L) on private organizations as required, and in accordance with DoD Directive 5000.19.1

212.6 Logistical support and services. (a) The amount and type of support provided and/or authorized a private organization varies according to the authority under which organized. Type 1 private organizations have Federal sanction; provide important services to the DoD family, and thereby receive certain support, both reimbursable and nonreimbursable, from the head of the DoD installation. The DoD issuances cited in the text of this part include provisions for support to applicable Type 1 private organizations. Other Type 1 private organizations authorized by a DoD Component may be provided similar reimbursable and nonreimbursable support. Type 2, affiliated private organizations, and Type 3, independent private organizations are provided support by the head of the DoD installation as prescribed below.

(b) The nature of the activities conducted by most Types 2 and 3 private organizations normally should require only enough space in which to conduct organizational meetings. If the use of the space, to include Governmentowned portable equipment in place, utilities, and janitorial supplies is occasional and only incidental to other uses of the facility, and provided its use will entail no added maintenance expenses, reimbursement is not required.

(1) However, if the private organization has exclusive use of the facility or space on a full-time basis, an outgrant document is required under the authority of the Head of the DoD Component concerned.

(2) Reimbursement for any space occupied, utilities, maintenance, and other support services will be determined in accordance with policies pre

1 See footnote to §212.4(b)(8)(ii)(1).

scribed in DoD Instruction 7230.7,1 which, in general, prescribes that charges may be waived or reduced for a nonprofit activitiy contributing to the welfare of DoD personnel.

(c) Private organizations are responsible for furnishing or procuring equipment, supplies, and other materials at their own expense. However, Government-owned equipment may be loaned or rented to a private organization physically located on a DoD installation within the limitations imposed by mission, availability, and statutory authority for such utilization.

(1) Neither appropriated nor nonappropriated funds will be used to repair or otherwise restore equipment which has been used on a temporary or loan basis by tenant private organizations since such costs should be properly borne by the user.

(2) Nonappropriated funds will not be used to repair private organization equipment.

(d) Classification System For Private Organizations by Type and Subtype. (1) Types of Private Organizations. (i) Type 1-Federally Sanctioned (ii) Type 2-Affiliated

(iii) Type 3-Independent

(2) Subtypes of Private Organizations. (i) Financial Institutions

(ii) Community Services, Fraternal, and Benevolent

(iii) Labor Organizations and DoD Management Associations

(iv) Sports, Hobbies, and Crafts
(v) Distaff/Spouse Organizations
(vi) Youth Organizations

(vii) Professional, Scientific, and Management

(viii) Religious Groups

(3) Examples of Private Organizations by Type and Subtype.2

(e) Type 1-Federally Sanctioned.

SUBTYPES

Financial Institutions

Banking Offices Credit Unions

1 See footnote 1 on previous page.

2 Specific organizations are listed herein for categorization purpose only. These organizations, as well as those not specifically identified, must conform to the policy provisions of this Instruction to be eligible to operate on DoD installations.

(a) DoD Family. Active duty military personnel, retired members and those of Reserve components, dependents and surviving spouses of the foregoing, and authorized civilians as determined by DoD Components.

(b) DoD Installation. A location, facility, or activity owned, leased, assigned to, controlled, or occupied by a DoD Component.

(c) Private Organization. A generally self-sustaining, non-Federal entity, incorporated or not, and constituted or established and operated on a DoD installation, with the written consent of the installation commander or higher authority, by individuals acting exclusively outside the scope of any official capacity as officers, employees, or agents of the Federal Government.

(d) Type 1-Federally Sanctioned Private Organizations. Type 1 private organizations are those which are recognized in accordance with specific DoD authority or by special authority granted at DoD Component level. All Type 1 private organizations, except those exempted in section D., are subject to the provisions of this Instruction. Examples of federally sanctioned private organizations are provided in § 212.6.

(e) Type 2-Affiliated Private Organizations. Type 2 private organizations which (1) operate on a DoD installation upon the written approval of the DoD installation commander, (2) operate as local affiliations of chapters, lodges (fraternal or benevolent organizations), posts (veterans' organizations), or elements of national or State chartered

organizations of the private sector, and (3) engage in activities of special interest to a voluntary membership or group of participants; examples of which are provided in §212.6.

(f) Type 3-Independent Private Organizations. Independent private organizations which are organized, established, operated and controlled locally by common interest groups conducting specific activities that fulfill certain accepted needs or wants of some members of the DoD family, and have no formal connection or affiliation with an organization outside of the installation; examples of which are provided in $212.6. Local initiative is exercised in securing written permission from the head of the DoD installation for their operation on the DoD installation.

(g) Subtype of Private Organizations. For classification purposes this is a relatively homogeneous functional grouping of private organizations, based on one or more of the following characteristics, having similar purposes or objectives, furthering related interests or conducting related activities, and comprising membership or participation of contemporary age levels.

(1) A subtype designation may be applied to more than one type of private organization, since the function being performed on a DoD installation is not limited by the connection or affiliation of the organization(s) comprising the subtype.

(2) For example, the funtion of community services, as a subtype of private organization, may be carried out through a Type 1 federally sanctioned private organization (Red Cross), a Type 2 affiliated private organization (PTA), or a Type 3 independent private organization (Thrift Shop).

(3) Section 212.6 provides a listing of the eight authorized classifications of private organizations by subtype and furnishes examples. The examples are illustrative and not all-inclusive.

(4) Classification of each private organization by type and subtype is a basis for positive identification of all private organizations and is a means of differentiating from nonappropriated

fund instrumentalities.

$215.1 Purpose and scope.

This part establishes uniform Department of Defense policies, assigns responsibilities, and furnishes general guidance for utilizing DoD military and civilian personnel, facilities, equipment or supplies:

(a) In support of civil authorities during civil disturbances within the 50 States, District of Columbia, Commonwealth of Puerto Rico, U.S. possessions and territories, or any political subdivision thereof.

(b) In other related instances where military resources may be used to protect life or Federal property or to prevent disruption of Federal functions. § 215.2 Applicability.

This part is applicable to all components of the Department of Defense (the Military Departments, Organization of the Joint Chiefs of Staff, Defense Agencies, and the unified and specified commands) having cognizance over military resources which may be utilized in accordance with the policies set forth herein.