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Nonappropriated fund activities are authorized or sanctioned by Government agencies, created and run by Government personnel fer benefit of Government personnel sometimes with initial loan of Government funds, and are sustained with profits from operations, rather than appropriated funds.
A Nonappropriated Fund (NAF) employee is a person who is employed in, and receives compensation from a Nonappropriated Fund Instrumentality (NAFI). NAF employment is different from civil Service federal employment because salaries for NAF employees are not allocated by Congress.
Non-appropriated-fund activities provide members of the armed services with goods and services not furnished by the Government. These activities include post exchanges, liquor stores, clubs, and recreational facilities.
Appropriated funds are approved by Congress for a specific purpose and cannot be used for any other purpose. Non-appropriated funds are dollars generated at the installation.
A nonappropriated fund instrumentality (NAFI) is an entity to which Congress has appropriated no funds, and for which it assumes no financial obligation.
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Highlights. Nonappropriated fund activities are authorized or sanctioned by Government agencies, created and run by Government personnel fer benefit of Government personnel sometimes with initial loan of Government funds, and are sustained with profits from operations, rather than appropriated funds.

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