MILITARY FAMILIES FUND (the "MFF")

In recognition of the personal sacrifice and significant contribution made by military families to the operational readiness and effectiveness of the Canadian Forces, the Department of National Defence and the Chief of the Defence Staff have made it a priority to ensure that military families receive programs and services that fully and appropriately support their morale and welfare.

These programs and services are provided through numerous publicly and non-publicly funded organizations, including the Canadian Forces Personnel Support Agency, Personnel Support Programs, CANEX, SISIP and Military Chaplains Services.

Military Family Resource Centres form the vanguard of military family support, and the Military Families Fund will work in concert with MFRCs and all other support organizations to ensure that the families of CF members receive, not only the programs and services that are essential to thriving family and community lives, but immediate financial assistance when they are most in need.

TERMS OF REFERENCE

DEFINITIONS

1. The MFF is established as a Non-Public Property (NPP) account within the Canadian Forces Central Fund (the "CFCF").

2. All monies received for and deposited to the credit of the MFF in the CFCF are NPP within the meaning of the National Defence Act (the "NDA"), and are to be administered in accordance with these Terms of Reference and, in general, in accordance with the regulations and policies governing the administration of the CFCF and NPP funds.

AUTHORITIES

3. Subsection 18(1) of the National Defence Act (the "NDA") provides that, under the direction of the Minister, the Chief of the Defence Staff (the "CDS") is charged with the control and administration of the Canadian Forces.

4. In addition, sections 2 and 38 to 41 of the NDA set out the powers, functions and duties of the CDS with respect to NPP, including the collection, administration and distribution of contributions received for the benefit of serving and former Canadian Forces members, their dependants, and other purposes approved by the CDS.

5. Section 2 of the NDA defines NPP to include "all money and property received for ... institutes ... of the Canadian Forces ".

6. CFSO 191 created the CFCF February 1, 1968. Subsection 41(3) of the NDA provides that The Financial Administration Act does not apply to NPP. The CEO of the Canadian Forces Personnel Support Agency, pursuant to DAOD 9003-1, is the managing director of NPP, and is responsible for the administration of NPP to the CDS through the Chief, Military Personnel (the "CMP").

7. The particulars of approved sources of NPP monies are set out in CFAO 27-6, Base/Wing and Station Funds. In general, the monies that are deposited to the various CFCF accounts to support NPP programs and services are largely generated by:

a. revenues from resale operations;

b. CF member mess dues and assessments in messes, clubs and other facilities;

c. assessments against individuals participating in or attending NPP activities; and

d. contributions for the benefit of CF members and their families.

8. Sections 38 and 39 of the NDA provide, in part, the following:

38. (1) The non-public property of a unit or other element of the Canadian Forces shall vest in the officer from time to time in command of that unit or other element, and shall be used for the benefit of officers and non-commissioned members or for any other purpose approved by the Chief of the Defence Staff in the manner and to the extent authorized by the Chief of the Defence Staff.
39. (1) Non-public property acquired by contribution but not contributed to any specific unit or other element of the Canadian Forces shall vest in the Chief of the Defence Staff and, subject to any specific directions by the contributor as to its disposal, may be disposed of at the discretion and direction of the Chief of the Defence Staff for the benefit of all or any officers and non-commissioned members or former officers and non-commissioned members, or their dependants.
(3) Except as authorized by the Chief of the Defence Staff, no gift, sale or other alienation or attempted alienation of non-public property is effectual to pass the property therein.
9. Although subsection 41(1) of the NDA provides that the CDS shall exercise his NDA authority subject to any directions of the Minister, the Minister's authority does not extend to directing the CDS with regard to the authority to dispose of or alienate NPP, pursuant to subsection 39(3) of the NDA.
41. (1) The Chief of the Defence Staff shall exercise his authority under subsections 38(1) and (2) and 39(1) subject to any directions that may be given to him by the Minister for carrying the purposes and provisions of this section and sections 38 to 40 into effect.

OBJECTS

10. The objects of the MFF are: to solicit, collect and receive contributions by way of donations to the MFF CFCF account, the sponsorship of MFF activities and events and to administer and distribute funds in the MFF CFCF account in accordance with these Terms of Reference and for the following benevolent purposes:

a. providing interest-free loans or grants to persons identified as Beneficiaries in accordance with these Terms of Reference by Base and Wing Commanders and their equivalents who have signing authority for the MFF as determined by the CEO, CFPSA (hereinafter referred to as "Base/Wing Commanders");

b. providing financial support for new short-term programs and services that are identified by the MFF Executive Committee as being a significant benefit to the morale and welfare of military families;

c. paying all costs and expenses properly incurred for the purposes of soliciting contributions by way of donations to the MFF account and the sponsorship of MFF activities and events;

d. paying all costs and expenses properly incurred for the administration of the MFF and all MFF activities, events, programs and services; and

e. any other purpose approved by the CDS.

BENEFICIARY

11. Subject to the following paragraphs, a "Beneficiary" is defined herein to include any individual related by blood or law to a serving or former CF member, or to a member of that individual's immediate family who meets the criteria for financial assistance established by these Terms of Reference.

12. Without limiting the generality of the foregoing, a Beneficiary may include a spouse, parent, grandparent, guardian, child, grandchild, brother, sister, mother-in-law, father-in-law, brother-in-law, sister-in-law, aunt, uncle, niece or nephew.

13. In addition, an individual who is not related by blood or law to a CF member may be a Beneficiary of the MFF if the relationship between the CF member and the individual is or has been of significance to the CF member, in the opinion of the CF member's Base/Wing Commander, and the CF member has been killed, disabled or injured while serving as a member of Her Majesty's Forces.

CRITERIA FOR FINANCIAL ASSISTANCE

14. There are two categories of criteria for financial assistance to a Beneficiary from the MFF:

a. CATEGORY "A": The Beneficiary is identified by a Base/Wing Commander to be in need of financial assistance by way of interest-free loan or grant in circumstances where there has been an injury, disability or death of a CF member related to the Beneficiary that occurred as a result of the CF member's service; and

b. CATEGORY "B": All other cases where a Beneficiary is identified by a Base/Wing Commander to be in need of financial assistance by way of interest-free loan or grant. In such cases, the Base/Wing Commander must be satisfied that the circumstances are such that the inability of the beneficiary to obtain financial assistance would be deleterious to the morale and welfare of a serving or former member, that member's family, or the members of the Base/Wing Commander's Base, Wing or Unit.

15. Where a Beneficiary is seeking financial assistance for purposes set out in Category "A", the Base/Wing Commander must complete Part A of the Base/Wing Commander Beneficiary Checklist and Recommendation Form (the "Checklist") attached hereto as Schedule "A", sign the recommendation, and obtain two signatures from the Beneficiary as set out in the Verification and Consent Form attached hereto as Schedule "B".

16. Where a Beneficiary is seeking financial assistance for purposes set out in Category "B", the Base/Wing Commander must complete Parts A and B of the Checklist, sign the recommendation, and obtain two signatures from the Beneficiary as set out in the Verification and Consent Form.

17. While the nature of the circumstances will vary from case to case, determining whether or not a financial need meets the necessary criteria, and whether or not the assistance should be by way of interest-free loan or a grant, consideration must be given to the following:

a. the urgency of the need;

b. the availability of financial assistance from other sources, including public funding (Note: if the purpose of the request for financial assistance is related to the injury or death of a CF member, particular efforts must be made in advance to determine whether public funding is available to cover the financial need);

c. the reasonable ability of the individual to obtain financial assistance from other sources such as a financial institution or relative;

d. the reasonable ability of the individual to reimburse the MFF;

e. the cause of the financial need;

f. the purpose of the financial assistance;

g. the need for financial counseling;

h. the need for other professional assistance, support or counseling; and

i. the likelihood of financial assistance being permanently curative of the circumstances.

18. In cases where all other criteria are met, and without limiting the generality of the preceding provisions, financial needs associated with the following are deemed to be appropriate purposes for financial assistance:

a. disease, injury, disability or death of any family member, and whether or not resulting from service if a member of Her Majesty's Forces;

b. rehabilitation;

c. education;

d. career counseling;

e. small business start-up; and

f. urgent and extraordinary financial demands that put the ability to provide family necessities at risk.

LIMITATIONS

19. The solicitation of donations to the MFF and sponsorships of MFF activities and events will be conducted in accordance with the NPP Sponsorships and Donations Policy in effect from time to time and the Treasury Board Communications Policy for the Government of Canada.

20. In addition, all solicitation of donations will be subject to the following:

a. No person soliciting donations on behalf of the MFF may suggest or promise that a donation will inure to the benefit of the donor with respect to any dealings with the government by the donor or by any person related to the donor, and

b. Solicitations may not be targeted specifically to businesses or individuals conducting business with DND, but such businesses and individuals may be part of a wide or public appeal for donations so long as best efforts have been made to ensure that:

(1) only publicly available information is used for the purposes of making up a distribution list for solicitation; and

(2) no business or individual is solicited that is or is legally related to anyone who is, involved in an ongoing litigation matter or claim or dispute against or with the Crown, has submitted a response to an ongoing solicitation or request for proposal ("RFP") regarding a government contract, or is about to be the beneficiary or recipient of an Advance Contract Award Notice.

21. The MFF Executive Committee must ensure that all collaborative arrangements and sponsorship-related MFF activities and events are established and conducted in a manner consistent with the following operating principles:

a. In accordance with legal, ethical and policy guidelines for the Government of Canada, CF and NPP organizations;

b. free from any expectation of preferential treatment in present or future DND/CF or NPP dealings and in a manner that does not imply endorsement of a partner's business, product or service;

c. governed and documented in order to ensure that these initiatives are managed and sustained to ensure full accountability and transparency;

d. all transactions are conducted in good faith whereby all commitments made on behalf of NPP and the MFF are mutually beneficial, based on an exchange of benefits of approximately equal value and honoured at all times;

e. mindful of public perceptions, remain politically neutral and avoid conflicts of interest, i.e., ensuring that private interests or gain (those of CF members or our partners) do not conflict with the public interest; and

f. are for purposes consistent with DND, the CF, NPP and MFF national aims, legislative mandate and priorities.

22. All MFF fund raising activities and events for which sponsorships are to be sought will be conducted only upon the written approval of the MFF Executive Committee, which approval may be sought administratively.

23. Donations cannot be accepted for any single specified purpose, and must be made payable to the MFF, CFCF.

24. No recommendation by a Base/Wing Commander for payment of an amount over $5,000.00, whether by way of interest-free loan or grant, shall be made to a person identified as a Beneficiary without the prior written approval of the CEO, CFPSA, whose discretion to approve or not approve such payments shall be absolute.

ADMINISTRATION

25. These Terms of Reference, including the Objects, Purposes, Criteria for Financial Assistance, Limitations and Administrative provisions contained herein may be amended at any time by approval in writing of the CDS.

26. All personal information collected for the purposes of administration of the MFF may only be collected, used, retained or disclosed in accordance with the provisions of the Access to Information Act and the Privacy Act.

27. Except as otherwise provided by law, persons exercising any authority hereunder with respect to the MFF, in carrying out their duties and responsibilities with regard thereto, including, but not limited to, the solicitation, collection, receipt, administration, expenditure or distribution of any MFF funds, or the administration of any MFF fundraising activity or event, shall not be liable or responsible for any acts, errors or omissions that are not fraudulent or that do not constitute gross negligence.

28. Each donor to the MFF will receive a tax receipt for a Gift to Canada.

29. Sponsors of MFF activities and events will not receive tax receipts.

30. CEO, CFPSA. The CEO CFPSA, shall:

a. Chair the MFF Executive Committee;

b. review all recommendations from Base/Wing Commanders for payments to Beneficiaries in excess of $5,000.00;

c. establish the time and place for the holding of meetings of the MFF Executive Committee, fix the quorum for the meetings at not less than a majority, and establish all administrative procedures for the meetings;

d. set and approve all expenses of the MFF Executive Committee and its members, including payment of honoraria to its members; and

e. report annually to the CDS on the operations of the MFF.

31. MFF Executive Committee. There will be established a MFF Executive Committee consisting of a minimum of seven members appointed by the CDS for such terms as determined by the CDS.

32. The MFF Executive Committee will conduct its activities in accordance with these Terms of Reference and any Limitations imposed herein.

33. The MFF Executive Committee has the authority to strike such sub-committees as it deems appropriate.

34. In addition to the administrative functions required for the purposes of carrying out the mandate of the MFF Executive Committee, as determined by the CEO, CFPSA, the duties and responsibilities of the MFF Executive Committee include:

a. approving official fundraising activities and events and approving the payment of costs and expenses properly incurred for those purposes;

b. approving the payment of costs and expenses properly incurred for the purposes of soliciting sponsorships of MFF activities and events;

c. approving the payment of all costs and expenses properly incurred for the administration of the MFF;

d. identifying new short-term programs and services that would be a significant benefit to the morale and welfare of military families and authorizing the payment of financial support therefor from the MFF; and

e. reviewing and recommending to the CDS for approval the annual audited financial statements of the MFF.

35. CFO, CFPSA .The Chief Financial Officer (the "CFO"), CFPSA, is responsible and accountable for the day-to-day management of the MFF account, which includes:

a. operating the Concentrated Bank Account (the "CBA") through which cash flow is provided and managed for all MFF deposits and payments with regard to MFF operations, programs, activities and events;

b. managing the investment of all MFF funds on account in the CFCF not required to meet anticipated day-to-day operational cash requirements of the MFF;

c. subject to these Terms of Reference, the payment or distribution of funds from the MFF to such persons as identified by Base/Wing Commanders to be Beneficiaries, upon receipt of a written recommendation from a Base/Wing Commander in accordance with the requirements detailed herein;

d. subject to these Terms of Reference, to pay any cost or expense properly incurred for an activity or event approved by the MFF Executive Committee for the purpose of soliciting sponsorship of a MFF activity or event or donations or contributions to the MFF;

e. where a payment has been recommended from the MFF by a Base/Wing Commander in circumstances in which it is apparent to the CEO, CFPSA that payment could be made from either the Canadian Forces Personnel Assistance Fund (the "CFPAF") or from DND/CF public funds, the CFO, CFPSA has full authority to so advise the Base/Wing Commander who recommended the payment and to either direct that payment be made from the CFPAF or recommend that payment be made from public funds in lieu thereof, provided that the CEO, CFPSA shall report thereon in the annual report to the MFF Executive Committee;

f. where a payment has been made from the MFF in circumstances in which it is subsequently determined that payment could have been made from either the CFPAF or from DND/CF public funds, the CFO, CFPSA has full authority to so advise the Base/Wing Commander who recommended the payment and to either reimburse the MFF from funds deposited to the credit of the CFPAF, or to seek reimbursement from DND/CF public funds where appropriate, provided that the CEO, CFPSA shall report thereon in the annual report to the MFF Executive Committee;

g. Issuing tax receipts for gifts to Canada to donors and contributors to the MFF; and

h. establishing with Base/Wing Commanders appropriate administrative mechanisms for assessment, approval and payment to Beneficiaries in accordance with these Terms of Reference, including, but not limited to, authorizing the use of pre-authorized debit instruments against the MFF account.

36. Base/Wing Commanders. Base/Wing Commanders are responsible and accountable to:

a. in concert with Military Family Resource Centres and such other military family support organizations as are available in their communities, identify cases where the assistance of the MFF may be required;

b. subject to applicable law, including the provisions of the Privacy Act, take such means as are necessary, including such consultations with third parties as are consented to by any individual seeking assistance, to identify Beneficiaries of financial assistance from the MFF;

c. ensure that all information related to requests for financial assistance from the MFF is classified and treated as Confidential Protected "B" Information;

d. with the consent of the Beneficiary, obtain all relevant information from the Beneficiary as set out in the Base/Wing Commander Beneficiary Checklist and Recommendation Form (the "Checklist"), attached hereto as Schedule "A", identifying the nature and amount of the need, and whether or not one of the two specified criteria are met to recommend financial assistance in accordance with these Terms of Reference;

e. determine whether or not public funds are available to cover the financial need;

f. identify any other forms of assistance necessary or appropriate in the circumstances, including financial or other forms of professional counseling;

g. obtain from the Beneficiary a signed Verification and Consent Form attached hereto as Schedule "B", including a second signature on the same form specifying whether or not the Beneficiary consents to public disclosure by the CDS, the CEO, CFPSA, the Base/Wing Commander, the CF or DND of the Beneficiary's name, the amount or nature of the payment and the general purposes for which payment has been made;

h. upon completion of both the Checklist and the Verification and Consent Form, the Base/Wing Commander will provide to the CFO, CFPSA, a copy of the Checklist and the Verification and Consent Form, containing all relevant information, the signed recommendation and two signatures from the Beneficiary, and advise the CFO, CFPSA what payments have been or will be made directly by the Base/Wing Commander from MFF pre-authorized debit instruments made available to the Base/Wing Commander in accordance with instructions issued by the CFO, CFPSA.

37. DMFS, CFPSA. The Director, Military Family Services, CFPSA, will:

a. In concert with Military Family Resource Centres, identify cases where the assistance of the MFF may be required for new short-term programs or services; and

b. Report to the MFF Executive Committee any recommendations for funding new short-term programs and services that would be a significant benefit to the morale and welfare of military families, identifying the nature of the program or service, the range of potential service providers and the recommended level of funding.

38. The DMFS, CFPSA will not be responsible for providing or administering any recommended new MFF programs or services.

SCHEDULE "A"

PROTECTED “B” PERSONAL INFORMATION WHEN COMPLETED

BASE/WING COMMANDER BENEFICIARY CHECKLIST  & RECOMMENDATION FORM

PART A

Name of Beneficiary: ______________________________________________________
Address of Beneficiary: ____________________________________________________
Telephone Number: _______________________________________________________
Name of CF Member: _____________________________________________________
Relationship with CF Member: ______________________________________________
Type of Assistance (Interest Free Loan or Grant): _______________________________
Amount of Assistance Requested: ____________________________________________
Funds to pay for: _________________________________________________________
Is assistance requested as a result of injury, disability or death of CF Member: _______
If Yes, was injury, disability or death a result of duty: ____________________________
If No, proceed to Part B.
If Yes, complete the following then proceed to Recommendation:
(i) Is assistance available from CFPAF or Public Funds: ____________________
(ii) If yes, is need urgent: _____________________________________________
(iii) Is other support or counseling required: _______________________________
PART B

Explain reason for request for assistance: ______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

Complete the following then proceed to Recommendation:
(i) Is financial assistance available from CFPAF or Public Funds: ____________
(ii) If yes, is need urgent: _____________________________________________
(iii) Is the Beneficiary able to reimburse the MFF: _________________________
(iv) Does the Beneficiary require financial or other counseling: _______________
(v) Does the Beneficiary require other professional support:  _________________

ASSISTANCE RECOMMENDED __________   NOT RECOMMENDED __________   

___________________________________________
BASE/WING COMMANDER

DATED AT                   THIS        DAY OF                         2007.

SCHEDULE “B”

PROTECTED “B” PERSONAL INFORMATION WHEN COMPLETED

VERIFICATION AND CONSENT FORM

I _______________________ of the ________________ of ____________ in the Province of _______________  HEREBY VERIFY that all of the information I have provided with respect to my request for financial assistance from the  Military Families Fund, is true.

This will also confirm that I am aware that the information being collected from me for this purpose will be collected, used and disclosed for the purposes of assessing my request and for all other purposes associated with the administration of the Military Families Fund and that, SUBJECT TO MY SPECIFIC CONSENT BELOW, no other use or disclosure of this information will occur without my consent, other than pursuant to the provisions of the Access to Information Act and the Privacy Act.

___________________________________________
BENEFICIARY

DATED AT                     THIS              DAY OF                             , 2007.

SPECIFIC CONSENT

I _______________________ of the ________________ of ____________ in the Province of _______________  HEREBY CONSENT / DO NOT CONSENT to the disclosure of the following information by the CDS, or others acting on behalf of the CDS:
1. My name as a Beneficiary of the Military Families Fund,
2. The purpose of my request for financial assistance, and
3. The amount and nature of the financial assistance I have received
For such purposes as the CDS, or others acting on behalf of the CDS, in their absolute discretion, may consider to be of benefit to the Military Families Fund, including obtaining contributions thereto.

___________________________________________
BENEFICIARY

DATED AT                     THIS              DAY OF                             , 2007.