Frequently Asked questions
What is the CFC?
The Combined Federal Campaign (CFC) is the only authorized solicitation of Federal employees in their workplaces on behalf of approved charitable organizations.
The CFC began in the early 1960’s to coordinate the fundraising efforts of various charitable organizations so that the Federal donor would only be solicited once in the workplace and have the opportunity to make charitable contributions through payroll deduction.
Federal employees continue to make the CFC the largest and most successful workplace philanthropic fundraiser in the world. Continuing a long-standing tradition of selfless giving, in 2010, Federal employees raised over $281.5 million dollars for charitable causes around the world.
Structure of the CFC
The CFC is made up of 199 local campaigns that organize the annual fund raising effort in Federal workplaces in the United States and abroad. Each local campaign is managed by a Local Federal Coordinating Committee (LFCC), which serves as a “Board of Directors” for the local campaign. The LFCC is comprised of Federal employees and representatives of labor unions and is responsible for the oversight of the local CFC. In conformance with CFC regulations and policies, the LFCC makes admission determinations for local charities and selects a Principal Combined Fund Organization (PCFO) to administer the day-to-day operations of the campaign and to serve as its fiscal agent. The Office of Personnel Management (OPM) regulates the CFC and provides guidance and oversight to the local campaigns (LFCCs and PCFOs).
Public Accountability
OPM is accountable for assuring Federal employees that their designations are honored and distributed to the charitable organizations of their choice. OPM achieves this in several ways:
- OPM maintains strict eligibility and public accountability criteria that all participating CFC charities must meet. For details, see CFC Regulations in 5 CFR Part 950 at http://www.opm.gov/cfc/opmmemos/index.asp.
- On an annual basis OPM makes admission decisions for all national and international charity applicants and resolves local charity admission appeals.
- OPM sets strict requirements and provides on-going guidance for the activities and conduct of the LFCC and the PCFO. The fiscal integrity of the campaign is verified by OPM compliance audits and the annual review of local campaign audits that PCFOs are required to have completed by an independent CPA.
The CFC Charity List
The Charity List is a paper or web-based display of national, international, and local organizations that have met CFC eligibility requirements. A sample charity listing is shown below with key elements shown in italics. Key elements include: the organization’s five-digit CFC code, the IRS Business File name shown in parentheses if it is “doing business as” another name, a 25-word statement of purpose (except in abbreviated listings), its administrative and fundraising expense rate (AFR), and its Service Categories (Taxonomy Codes).
Sample Charity Listing
11405 ABC Charity (Alpha-Charity) (800) 555-5555 www.abccharity.org EIN#123456789 ABC Charity attacks the causes of hunger and poverty by promoting effective and innovative community-based solutions that create self-reliance, economic justice, and food security. 15.8% P,S,K
Making Informed Giving Decisions
The EIN, AFR, and the Service Categories are included to help you identify organizations that meet your interests and performance standards. The Employer Identification Number (EIN) is issued by the Internal Revenue Service (IRS). It can be used for obtaining additional information about an organization from the IRS (877-829-5500). Please Note: Some organizations may be covered under an umbrella organization’s tax exemption status and EIN may or not be required to have an EIN. The Administrative and Fundraising Rate (AFR) represents the percentage of dollars spent on administering the charity. It is calculated as a percentage of the organization’s total support and revenue. OPM, as well as the philanthropic community at large, remains concerned about excessive AFR levels. The philanthropic community generally considers an AFR in excess of 35 percent to be problematic. Some organizations are listed with a negative AFR. While there are other reasons this may happen, these are often the result of organizations reporting negative revenues caused by investment losses experienced during these extraordinary difficult economic times. Donors should check with the organization and/or review its IRS Form 990; which is available to the public for a complete explanation. Each situation is unique. Donors may contact the charity directly and/or industry oversight organizations in order to better understand the financial status, service delivery record, and governance policies of the charity before donating.
The Service Categories (Taxonomy Codes) categorize the types of services that most charitable organizations offer. Charities self-select up to three alpha-codes (shown below) for inclusion in the CFC charity list. Charities that did not select at least one category are assigned “Z” for the “Other” category.
The 26 service categories are derived from the National Taxonomy of Exempt Entities (NTEE) classification system. This system, developed by the National Center for Charitable Statistics, is widely used in the non-profit community.
SERVICE CATEGORIES (TAXONOMY)
A Arts, Culture, and Humanities
B Educational Institutions & Related Activities
C Environmental Quality, Protection & Beautification
D Animal Related
E Health – General and Rehabilitative
F Mental Health, Crisis Intervention
G Disease, Disorders, Medicinal Disciplines
H Medical Research
I Crime, Legal Related
J Employment, Job Related
K Food, Agriculture, and Nutrition
L Housing, Shelter
M Public Safety, Disaster Preparedness & Relief
N Recreation, Sports, Leisure, Athletics
O Youth Development
P Human Services – Multipurpose and Other
Q International, Foreign Affairs, National Security
R Civil Rights, Social Action, Advocacy
S Community Improvement, Capacity Building
T Philanthropy, Voluntarism & Foundations
U Science & Technology Research Institutes, Services
V Social Science Research Institutes, Services
W Public, Social Benefit: Multipurpose, Other
X Religion Related, Spiritual Development
Y Mutual/Membership Benefit Orgs., Other
Z Other
For additional guidance on selecting charities, visit the CFC website at http://www.opm.gov/cfc/html/qfd.asp.
Do I Have To Give Through The CFC?
No. Participation in the CFC is strictly voluntary.
Coercion is forbidden. You have the right to not be improperly influenced regarding your decision to give or not to give through the CFC. Prohibited practices include, but are not limited to: supervisors soliciting the employees they supervise; setting 100% participation goals, providing and using donor lists for purposes other than the routine collection of contributions, establishing personal dollar goals and quotas, and developing and using lists to identify non-contributing employees.
If you prefer, you may donate to the CFC anonymously by placing your confidential gift in a sealed standard envelope.
Civilian employees may register complaints about coercion with the LFCC and contact their personnel offices; military personnel should contact the LFCC or their commanding officers. If the issue is not resolved satisfactorily, military personnel may also contact the Department of Defense Washington Headquarters Services at (703) 699-1841.
Can I Specify Which Organization Will Receive My Contribution?
Yes, the CFC is a donor-designated campaign. By designating the five-digit code of the charity of your choice, you ensure that your donation goes to meet the needs that you feel are most important. Simply designate the organization(s) of your choice where indicated on your pledge form by entering the five-digit code and the amount you wish to pledge. Additional designations may be completed on a second pledge form. Except for documented expenses for the operation of the local CFC and unfulfilled pledges, all contributions are distributed as designated. There is no limit to the amount of contributions an organization may receive through the CFC.
You cannot designate to an organization that is not listed in this Charity List. Adding organizations not listed, or “write-ins”, is prohibited by CFC regulations and donations to such organizations will be treated as undesignated funds. In addition, pledges made using anything other than the assigned five-digit codes cannot be honored and will be treated as undesignated funds. Undesignated funds are distributed to only those charities that receive donations and in the same proportion as they received designations.
What Are Independent Organizations And Federations?
A federation is a charitable organization that provides common fundraising, administrative, and management services to its member organizations. Affiliated organizations receive services from a Federation and may pay dues or fees to that federation as a service charge. Independent organizations are not members of a federation and participate in the CFC on their own.
For additional information on a particular federation and any dues/fees paid
by its members, either contact the federation, its members, or review the
federation’s annual report.
How Do I Designate A Federation, Or Alternatively,One Of Its Members, To Receive My Contribution?
If you wish to designate all or some portion of your contribution to a federation, please record that federation’s corresponding five-digit code number on your pledge form. The federation name will be listed at the top of the list of the federation’s member organizations. Contributions designated to a federation will be shared in accordance with the federation’s policy. If you wish to designate all or some portion of your contribution to an affiliated federation member organization, please record the affiliate organization’s corresponding five-digit code number on your pledge form.
How Do I Designate An Independent Organization To Receive My Contribution?
You may wish to designate to an independent organization that is not affiliated with a federation. Simply enter that organization’s five-digit code number on your pledge form.
What If I Choose Not To Specify An Organization Or Federation To Receive My CFC Contribution?
All funds contributed to the CFC that are not designated to a specific organization or federation will be treated as undesignated funds and distributed to all organizations listed in the CFC Charity List in the same proportion as they received designations. Organizations that do not receive designated dollars cannot receive any portion of the undesignated distribution.
What Is The International General Designation Option?
If you wish to have your contribution distributed proportionately among all international organizations that received designated gifts, you may do so by entering the five-digit code: 11111 on your pledge form.
What Is The Payroll Deduction Option?
Payroll deduction makes it convenient for you to give by spreading your contribution across the entire year. Last year, more than 90% of all CFC funds raised were made through payroll deduction. Payments on payroll deduction pledges begin on the first pay period in January and conclude with the last pay period in December. There is no simpler way for you to make good things happen for so many people than to contribute using payroll deduction. Payroll deduction helps you care for your community and your world.
Will I Receive A Receipt For My Contribution?
You should keep a copy of your pledge form, as well as your pay statements (if you made a payroll deduction contribution), as a receipt of your pledge.
A Federal employee who makes a one-time (cash, check, or money order) contribution must maintain a bank record and a copy of the pledge form to show the name of the organizations contributed to, the date of the contribution, and the amount of the contribution. Local campaigns can be found using the Campaign Locator search feature on the CFC website at www.opm.gov/cfc/Search/Locator.asp You should consult a tax adviser to determine if additional verification of the donation is required by the IRS.
What Are The Costs Of The Campaign?
Historically, local campaign costs across the nation have averaged ten percent. These funds are required to print materials, train volunteers, audit contributions, and other administrative duties. All local campaign costs are reviewed and approved by the LFCC governing the local campaign. On average, this cost is low compared with other fundraising campaigns; therefore, donating to a charity through the CFC ensures every dollar you pledge goes a very long way toward helping others.
What Is On-line Pledging or E-Giving?
On-line pledging and E-giving, in general terms, mean that donors have the additional pledging tools of the charity list and pledge form available to them “on-line” or on the internet or intranet. Currently, several local campaigns offer on-line charity lists and secure pledge transactions through the Employee Express (EEX) HR System. Other campaigns have web-based charity lists and downloadable pledge forms. This is a pure paperless process and is one way CFC is striving to “go green” .
Local campaigns can be found using the Campaign Locater search feature on the CFC website at http://www.opm.gov/cfc/Search/Locator.asp
Visit the CFC Homepage
For information about the CFC, including details on the public accountability standards for participating charities, how to contact your local CFC campaign, and more, visit the CFC Home Page at www.opm.gov/cfc.
Who Oversees the CFC?
The CFC is conducted in accordance with detailed regulations established by Congress and administered through the Office of Personnel Management in Washington, D.C.
What is the advantage of giving through the CFC rather than giving directly to a charity?
Charities incur costs processing individual contributions. Whereas with CFC, they receive one check each year or quarterly checks that represents the combined gift of many donors. This process frees resources for better community services and reduces an organization's fundraising costs.
What is the duration of my payroll deduction? When does it begin?
Payroll deductions for the 2011 CFC begin in January 2012 and continue throughout the year to December 2012.
Can I stop my payroll deduction?
Yes. The authorization may be revoked, in writing, at your payroll office at any time. You have to right to stop your pledge at any time, for any reason. The CFC strongly encourages employees to honor the commitment to give to the designated charities.
Does the charity I select know that I have contributed?
Not unless you opt to share that information. You must separately authorize your name, address, e-mail, and pledge amount to be released by checking off the appropriate boxes on the Pledge Form.