We now know the third and final fee for the 2017 CFC: 16.5 percent. That’s the percentage of 2017 donations that will be withheld from each participating charity to cover campaign administrative costs. It's called the distribution fee. OPM announced it last Friday.
It’s unfortunate that policing transgressions in the charity world is so rare that it makes news when it happens. But it does. And so we must thank the attorneys general in California and New York for taking recent actions that should be ordinary – and probably would be if enforcers such as the IRS and state attorneys general were given adequate resources for the job.
For the first time in 55 years, one can question whether the CFC will survive.
Today the Chronicle of Philanthropy published an op ed by our CEO, Marshall Strauss, about the steep decline of the CFC, how government blunders have contributed to its demise, and what might be done to save it. If you subscribe to the Chronicle, you can read the full article: https://www.philanthropy.com/article/Opinion-Federal-Charity/242184. Meanwhile, here are the main points.
The new CFC fees imposed by OPM for the 2017 campaign contributed to a dramatic decline in charity participation. Overall, from 2016 to 2017, the number of charities in the CFC dropped by more than half.
The government has published its admission fees for the 2018 CFC. For the most part, OPM has maintained its policy set a year ago, which clearly makes it harder for lower performing charities to participate in the Combined Federal Campaign.