The cost of the campaign will be recovered primarily through application fees paid by the charitable organizations that apply for participation in the CFC. Additionally, upfront application fees will require that charities properly adjust for campaign costs in their own accounting, something that the current process of cost deduction does not reflect.
Prior to 2017, the overhead administrative costs of much of the CFC program were paid out of donor contributions through the campaign. OPM maintains that more transparency with respect to administrative overhead would be beneficial to the program, to the donors, and to the charitable organizations that receive donations through the CFC.
In addition to defraying costs, an application fee will discourage those organization that receive no benefit from the campaign from applying, thereby reducing administrative costs, and increasing the number of dollars that reaches participating charities. It is in the spirit of these recommendations that OPM proposed to restructure CFC cost recovery.
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