Reference & AI

DAFMAN 34-201

Air Force

USE OF NONAPPROPRIATED FUNDS (NAFS)

Reviewed by Guilherme Correia, active-duty U.S. Air Force

DAFMAN 34-201, "USE OF NONAPPROPRIATED FUNDS (NAFS)", is a Department of the Air Force publication, dated September 28, 2018.

Published

September 28, 2018

OPR

AF/A1

Headquarters, Department of the Air Force

Official document

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DAFMAN 34-201 — index record

NumberDAFMAN 34-201
TitleUSE OF NONAPPROPRIATED FUNDS (NAFS)
PublishedSeptember 28, 2018
Certified currentSeptember 28, 2018
Guidance memorandumApril 27, 2026
Office of primary responsibilityAF/A1
Issued byHeadquarters, Department of the Air Force
Status on the indexCurrent
Last index actionGM, April 27, 2026
Source indexAir Force e-Publishing
Index last readOctober 20, 2026

Copied from Air Force e-Publishing (index). The publication itself is the authority; this page does not summarize or interpret it. Verify the current edition on the index before acting.

From the publication itself

Text below is lifted mechanically from the official PDF (103 pages, read October 20, 2026) with no editing or interpretation. Quote the document, not this page.

Purpose, in the publication’s words

of Air Force Nonappropriated Funds. Use nonappropriated funds for the collective benefit of military personnel, their families, and authorized civilians. These funds support Morale, Welfare, and Recreation programs, lodging, and other programs and Nonappropriated Fund Instrumentalities as defined and authorized in this instruction.

Summary of changes, as printed

This publication was revised and must be thoroughly reviewed. It clarifies definitions, tightens expenditure authorities and reporting requirements, updates references, and mailing addresses. This change adds a separate chapter for guidance on the Air Force Fisher House Fund, a separate chapter for Air Force Civilian Welfare Fund, addresses use of nonappropriated funds for business cards in special/certain circumstances, expands guidance regarding donations/gifts to Nonappropriated Fund Instrumentalities, updates acceptance levels for donations with reference to Air Force Instruction 34-108, Air Force Commercial Sponsorship and Sale of Advertising, and deletes requirement for Air Force Base Capital Improvement Fund Project Completion Report (Report Control Symbol: Headquarters Air Force-Services[AR] 9468). Additionally, this change provides specific guidance on waivers to fund source and use of Nonappropriated Fund Instrumentality Memorandum of Agreements. Finally, this change defines the roles and responsibility of the Air Force Installation Mission and Support Center and implements the Commanders Nonappropriated Fund Sustainment Program. Applies to all Nonappropriated Fund Instrumentalities throughout Air Force with the exception of Army and Air Force Exchange Service and Chaplain Funds. Changes in organizational structure cannot change this publication or the purpose or intent of a Nonappropriated Fund Instrumentality. (T-0)

Contents

  1. Chapter 1— GENERAL INFORMATIONp. 9
  2. Chapter 2— ROLES AND RESPONSIBILITIESp. 11
  3. Section 2A— Higher Headquarters Responsibilitiesp. 11
  4. Section 2B— Nonappropriated Fund Instrumentality Custodianp. 16
  5. Section 2C— Nonappropriated Fund Councils and Advisory Committeesp. 17
  6. Section 2D— Auditing and Inspecting Nonappropriated Fund Instrumentalitiesp. 18
  7. Section 3A— Establishing Nonappropriated Fund Instrumentalitiesp. 20
  8. Section 3B— Types of Nonappropriated Fund Instrumentalitiesp. 22
  9. Section 3C— Dissolving Nonappropriated Fund Instrumentalitiesp. 27
  10. Chapter 4— WHAT NONAPPROPRIATED FUNDS COVER AND DO NOT COVERp. 30
  11. Section 5A— Transfersp. 37
  12. Section 5B— Contributions and Donationsp. 39
  13. Chapter 6— REAL PROPERTY AND CONSTRUCTIONp. 44
  14. Chapter 7— NONAPPROPRIATED FUND EMPLOYEESp. 46
  15. Chapter 8— TAXESp. 48
  16. Chapter 9— SPECIAL USES OF NONAPPROPRIATED FUNDSp. 51
  17. Chapter 10— WAIVERS, EXCEPTIONS, AND SPECIAL APPROVALSp. 57
  18. Chapter 11— TENANT AND ISOLATED UNITSp. 58
  19. Chapter 12— SUPPORT FOR SPECIAL MORALE AND WELFARE PURPOSESp. 61
  20. Chapter 13— AIR FORCE FISHER HOUSE FUNDp. 68
  21. Chapter 14— AIR FORCE CIVILIAN WELFARE FUNDp. 73
  22. Attachment 6— SPECIAL MORALE AND WELFARE EXPENDITURE REPORTp. 86
  23. Attachment 8— SAMPLE OFFER OF GIFT AND ACCEPTANCE TEMPLATESp. 89
All 120 contents entries
  1. 2.4. MWR fund Acid Test Ratio: ______________________________________________p. 6
  2. Chapter 1— GENERAL INFORMATIONp. 9
  3. 1.1. Nonappropriated Fundsp. 9
  4. 1.2. Purpose of Air Force Nonappropriated Fundsp. 9
  5. 1.3. Nonappropriated Fund Instrumentalityp. 9
  6. 1.4. Legal Status of Air Force Nonappropriated Fund Instrumentalitiesp. 9
  7. 1.5. Nonappropriated Fund Instrumentalities Not Controlled by This Instructionp. 9
  8. 1.6. Nonappropriated Fund Instrumentality Recordsp. 10
  9. 1.7. Nonappropriated Fund Contractsp. 10
  10. 1.8. Delegationsp. 10
  11. Chapter 2— ROLES AND RESPONSIBILITIESp. 11
  12. Section 2A— Higher Headquarters Responsibilitiesp. 11
  13. 2.1. Basic Authorityp. 11
  14. 2.2. Commander, Air Force Installation Mission Support Centerp. 11
  15. 2.3. Commander, Air Force Services Activityp. 12
  16. 2.4. Installation Commanderp. 13
  17. Section 2B— Nonappropriated Fund Instrumentality Custodianp. 16
  18. 2.6. Nonappropriated Fund Instrumentality Custodian Responsibilitiesp. 16
  19. Section 2C— Nonappropriated Fund Councils and Advisory Committeesp. 17
  20. 2.7. Nonappropriated Fund Councils:p. 17
  21. Section 2D— Auditing and Inspecting Nonappropriated Fund Instrumentalitiesp. 18
  22. 2.8. Advisory Committeesp. 18
  23. 2.9. Cooperating with Audits, Inspections and Reviewsp. 18
  24. 2.10. Enforcing Quality Controlp. 19
  25. 2.11. Audit Focal Pointp. 19
  26. Section 3A— Establishing Nonappropriated Fund Instrumentalitiesp. 20
  27. 3.1. Basic Proceduresp. 20
  28. 3.2. Categorizing Nonappropriated Fund Instrumentalities and Activitiesp. 21
  29. 3.3. Successor Nonappropriated Fund Instrumentalities:p. 21
  30. Section 3B— Types of Nonappropriated Fund Instrumentalitiesp. 22
  31. 3.4. Morale, Welfare, and Recreation Nonappropriated Fund Instrumentalitiesp. 22
  32. 3.5. Installation Morale, Welfare, and Recreation Fundsp. 23
  33. 3.6. New Programsp. 23
  34. 3.7. Isolated Unit Fundsp. 24
  35. 3.8. Air Force Lodging Fund Nonappropriated Fund Instrumentalityp. 24
  36. 3.9. Installation Lodging Nonappropriated Fund Instrumentalitiesp. 24
  37. 3.10. Air Force Fisher House Fundp. 26
  38. 3.11. United States Air Force Academy Air Force Academy Athletic Associationp. 26
  39. 3.12. Cadet Dining Hall Fundp. 26
  40. 3.13. Civilian Welfare Fundsp. 26
  41. Section 3C— Dissolving Nonappropriated Fund Instrumentalitiesp. 27
  42. 3.15. Air Force Marathon Nonappropriated Fund Instrumentalityp. 27
  43. 3.17. Basic Proceduresp. 27
  44. 3.18. Disposing of Nonappropriated Fund Assets Upon Base Closurep. 27
  45. 3.20. Closure of Activitiesp. 29
  46. Chapter 4— WHAT NONAPPROPRIATED FUNDS COVER AND DO NOT COVERp. 30
  47. 4.1. Basic Criteria for Using Nonappropriated Fundsp. 30
  48. 4.2. What Nonappropriated Funds Do not Coverp. 30
  49. 4.3. What Morale, Welfare, and Recreation Nonappropriated Funds Coverp. 33
  50. Section 5A— Transfersp. 37
  51. 5.1. Transfer of Assetsp. 37
  52. 5.2. Inter-Nonappropriated Fund Instrumentality Transfersp. 38
  53. 5.3. Intra-Nonappropriated Fund Instrumentality Transfersp. 38
  54. 5.4. Loaning Assetsp. 38
  55. 5.5. Transfers to Appropriated Fund Accountsp. 38
  56. Section 5B— Contributions and Donationsp. 39
  57. 5.6. Base or Organization Transfersp. 39
  58. 5.8. Methods of Offering Gifts and Approval/Acceptance Authoritiesp. 40
  59. 5.10. Gift Funds Utilizationp. 41
  60. 5.11. Accepting Premiums and Advertising Itemsp. 42
  61. Chapter 6— REAL PROPERTY AND CONSTRUCTIONp. 44
  62. 6.1. Using Nonappropriated Funds for Real Property and Constructionp. 44
  63. 6.2. Capital Improvementsp. 44
  64. 6.3. Architecture & Engineering Servicesp. 44
  65. 6.4. Supervision, Inspection, and Overhead Servicesp. 44
  66. 6.5. Leasing Real Propertyp. 45
  67. 6.6. Limitations on Constructionp. 45
  68. Chapter 7— NONAPPROPRIATED FUND EMPLOYEESp. 46
  69. 7.1. What Nonappropriated Funds Coverp. 46
  70. 7.2. Overpayment of Wages, Allowances, Differentials, or Benefitsp. 47
  71. 7.3. Garnishment of Wagesp. 47
  72. 7.4. Other Personnel Usesp. 47
  73. Chapter 8— TAXESp. 48
  74. 8.1. Federalp. 48
  75. 8.2. State and Local Taxesp. 48
  76. 8.3. Taxes Levied by Foreign Governmentsp. 49
  77. 8.4. Collecting Taxes for Foreign Governmentsp. 49
  78. 8.5. Tax Reporting for Individual Services Contracts, Awards, Bingo, and Prizesp. 49
  79. 8.6. Interest and Penalty Paymentsp. 49
  80. Chapter 9— SPECIAL USES OF NONAPPROPRIATED FUNDSp. 51
  81. 9.1. Trophies and Awardsp. 51
  82. 9.2. Travel and Transportationp. 52
  83. 9.3. Fundraising Eventsp. 54
  84. 9.4. Nonappropriated Fund Instrumentality Advertisingp. 54
  85. 9.5. Open Houses and Air Showsp. 55
  86. 9.6. Nonappropriated Fund Instrumentality Vehiclesp. 55
  87. Chapter 10— WAIVERS, EXCEPTIONS, AND SPECIAL APPROVALSp. 57
  88. 10.1. Waivers and Exceptionsp. 57
  89. 10.2. Submitting Requests for Air Force Approvalp. 57
  90. Chapter 11— TENANT AND ISOLATED UNITSp. 58
  91. 11.1. Tenants and Hostsp. 58
  92. 11.2. Isolated Unitsp. 58
  93. 11.3. Getting Morale, Welfare, and Recreation Support for Tenant Unitsp. 58
  94. 11.4. Establishing a Support Agreementp. 59
  95. 11.5. Determining Morale, Welfare, and Recreation Support for Isolated Unitsp. 59
  96. 11.7. Disbursing Funds to Isolated Unitsp. 60
  97. Chapter 12— SUPPORT FOR SPECIAL MORALE AND WELFARE PURPOSESp. 61
  98. 12.1. Special Morale and Welfare Expendituresp. 61
  99. 12.2. Commander Responsibilitiesp. 61
  100. 12.3. Morale, Welfare, and Recreation Fund Custodian Responsibilitiesp. 63
  101. 12.4. Permissible Expendituresp. 63
  102. 12.5. Prohibited Expendituresp. 64
  103. 12.6. Propriety of Expendituresp. 65
  104. Chapter 13— AIR FORCE FISHER HOUSE FUNDp. 68
  105. 13.1. Generalp. 68
  106. 13.2. Operating Philosophyp. 68
  107. 13.3. Responsibilities of the Air Force Fisher House Fund Boardp. 68
  108. 13.4. Air Force Fisher House Fund Board Composition and Advisorsp. 69
  109. 13.5. Annual Reportingp. 69
  110. 13.6. Operations of Fisher Housesp. 70
  111. 13.7. Occupancyp. 72
  112. Chapter 14— AIR FORCE CIVILIAN WELFARE FUNDp. 73
  113. 14.1. Generalp. 73
  114. 14.2. Joint-Funded Projectsp. 75
  115. 14.3. Civilian Welfare Fund Employeesp. 75
  116. 14.4. Civilian Welfare Fund Assetsp. 75
  117. 14.5. Civilian Welfare Fund Contractingp. 75
  118. 14.6. Tax Statusp. 75
  119. Attachment 6— SPECIAL MORALE AND WELFARE EXPENDITURE REPORTp. 86
  120. Attachment 8— SAMPLE OFFER OF GIFT AND ACCEPTANCE TEMPLATESp. 89

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Air Force index

REF: DAFMAN 34-201, effective September 28, 2018

Air Force e-Publishing — DAFMAN 34-201

This is an index record, not the publication. The official PDF is the authority; verify the current edition before acting.

Reviewed by Guilherme Correia · Military Toolkit editorial

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