Workplace Giving Alliance – A family of federations in the Combined Federal Campaign (CFC)
Serving Charities - Honoring Donors
  • Home
  • About Us
    • Board of Directors
    • Staff
    • Contact Us
  • Our Federations
  • Workplace Giving and the CFC
  • Research
  • WGA Blog
  • Login

Summary of Proposed CFC Regulations

4/14/2013

0 Comments

 
The proposed new CFC regulations in their original form are 55 pages of legal and administrative language. You can read them at http://federalregister.gov/a/2013-08017.
​
Because some may find the original document a bit forbidding, we have created the following summary. We touch on only major changes and do not address every detail, nor do we try to explain how the changes will be implemented. We plan to discuss issues raised by the regs extensively in this blog.
The new regulations change how the campaign will be administered:
​Current: The CFC is administered in 184 independent geographical zones of varying sizes, each overseen by a committee of federal employees (the “LFCC”) which reviews local charity applications and hires a staff (the “PCFO”) to print the catalog, promote the campaign through kick-off events and other means, process pledges and distributions, and provide training to and field questions from both federal workers and charities.

Proposed: The new regulations abolish the PCFOs. The old LFCCs become the Regional Coordinating Committees for an unspecified number of larger geographical regions. Each RCC may hire marketing support – though this is not required.
Admissions and pledging will be centralized on a website run by a Central Campaign Administrator, a tax-exempt nonprofit that does not itself solicit contributions through the CFC. CFC donations will be distributed by the CCA or federal payroll offices (the regulations allow for both possibilities).
​
All applications from independent organizations (national and local) will be submitted electronically to the CCA and reviewed by OPM with assistance from the RCCs. Charities may also apply through federations. Charities will be allowed to submit abbreviated applications in two of every three years to reduce the burden of paperwork.
The new regulations change how the campaign will be paid for:
Current: Each local zone of the campaign is financed by its PCFO, which pays for its campaign staff, paper catalog, marketing, accounting and audit. The money each PCFO fronts to run the campaign is repaid using the first donations received. While local costs vary widely, the countrywide average is 10% of what is raised. Charities therefore currently receive about 90% of actual donations made, whether they receive a large or small share of the total.
​
Proposed: The new regulations will fund CFC costs by charging charities an up-front non-refundable application fee which will be used to pay the Central Campaign Administrator and to reimburse local RCC expenses.
  • The proposed regulations provide no detail about the fee structure other than that it will be set annually by OPM based on a proposed campaign budget. Observers’ estimates have ranged from hundreds to thousands of dollars for each charity. No further charges or fees will be withheld from actual CFC donations.
  • Due to the overlapping CFC calendar, charities will pay application fees for two years before they learn the results of their first year.
  • Federations will be required to distribute funds at least quarterly and to distribute 100% of the donation to members (i.e., they will need to bill separately for their own charges).
The new regulations change eligibility requirements:
Current: Among the eligibility and accountability provisions in the current regulations is the requirement that all local CFC charities with revenue over $100,000 have an audit. All national charities, regardless of size, must have an audit.

Proposed: Most eligibility and accountability provisions remain unchanged, although some requirements that now appear only in OPM guidance will be incorporated into the regulations. Audits will no longer be required for any charity (national or local) with revenue under $250,000. Charities with revenue between $100,000 and $250,000 must have at least a review.
Other Changes of Note:
Current
Proposed

Pledge period runs from September 1 through December 15.
Pledge period will run from October 1 through January 15. New employees will be invited to pledge when they are hired if they are hired outside that period.

Retirees and contractors cannot pledge.
Retirees, contractors and others on federal premises may make single electronic donations.

Employees may pledge by paper or online systems. Paper pledges currently account for well over half of CFC pledges. Some estimates suggest that 8-9% are made by cash or credit card or are associated with a fundraising event.
The paper catalog and paper pledges are eliminated. Donors will search for charities and make pledges electronically on the central website. They may give by payroll deduction or credit card, but not by cash or check. Donations at campaign events will no longer be permitted.

Donors may give to any national or international charity but only to local charities in their own area.
Donors may give to any CFC charity—national, international or local—no matter where it is located.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    WGA Blog

    We are the Workplace Giving Alliance, a group of federations participating in the Combined Federal Campaign and dedicated to its success. These posts are written by Marshall Strauss, CEO of WGA.

    RSS Feed

    Archives

    January 2019
    November 2018
    October 2018
    May 2018
    April 2018
    March 2018
    January 2018
    November 2017
    October 2017
    April 2014
    March 2014
    February 2014
    October 2013
    July 2013
    June 2013
    May 2013
    April 2013
    January 2013
    December 2012
    August 2012
    July 2012
    December 2011
    November 2011

    Categories

    All
    2017 CFC
    2018 CFC
    CFC 101
    CFC Admission Fees
    CFC Federations
    CFC Pledge Results
    CFC Search
    Future Of Charity
    Government Shutdown
    Million Donor Choose Reports
    New CFC Regs

    RSS Feed

Workplace Giving Alliance | P.O. Box 2052 | Salem, MA 01970 | 978-594-0404 | Staff Login