CFC MEMORANDUM 2002-13

MEMORANDUM FOR NATIONAL AND LOCAL PARTICIPATING CFC

This is to announce a new requirement for national and local federations applying to participate in the 2003 Combined Federal Campaign.

Effective for the 2003 application season, all federations, nationally and locally, must include as part of their CFC application details regarding member dues and/or service fee arrangements that may result in a withholding of a percentage of contributions beyond what is claimed in the IRS Form 990 or reported in the official CFC brochure. In addition, all federations must include this information as part of the annual report they make available to the public. The CFC application has been revised to accommodate this new provision.

Rationale:

Previous federation audits conducted by the Office of the Inspector General (OIG) have found that federations may deduct numerous fees before a member charity receives the contribution.
In response to this finding and the OIG's recommendation, the official CFC brochure was revised this year to add a statement explaining that federations may charge member dues and/or other administrative fees not reflected in the administrative and fundraising rate that appears in the 25-word description.

The role of federations in workplace fundraising is to provide wider access to charities to employee contributions and to provide marketing and other services, at a cost to charities. While these transactions are part of an agreement between the charity and the federation, Federal employees must be provided complete information regarding the actual percentage of their contribution that goes to the charitable organizations they designate. This will ensure total transparency in the conduct of campaign practices.

I look forward to your continued cooperation as we work to sustain the high standards of the Combined Federal Campaign.

Address questions or comments to cfc@opm.gov