The Combined Federal Campaign (CFC) is the workplace giving program of the federal government of the United States. The program is authorized by executive order 12353 (as amended) of March 23, 1982, and is overseen by the United States Office of Personnel Management (OPM). Issued by President Reagan, the order states that a CFC objective is "to lessen the burdens of government and of local communities in meeting needs of human health and welfare..." According to OPM's website, the mission of the CFC "is to promote and support philanthropy through a program that is employee focused, cost-efficient, and effective in providing all federal employees the opportunity to improve the quality of life for all".
The federal regulations that govern the CFC are at 5 CFR §950.
Origins
In 1957, President Dwight D. Eisenhower promulgated procedures for a program of charitable solicitation in the federal workplace and established the "President's Committee on Fund-Raising Within the Federal Service" to review and modify the fund-raising program (Executive Order No. 10728, 22 Fed. Reg. 7219, Establishing the President's Committee on Fund-Raising Within the Federal Service, Sept. 6, 1957).
In 1961, President John F. Kennedy signed Executive Order 10927, "Abolishing the President's Committee on Fund-Raising Within the Federal Service and Providing for the Conduct of Fund-Raising Activities," which gave authority to the United States Civil Service Commission to organize nonprofit solicitations of federal government employees:
Kennedy's executive order was eventually replaced by President Ronald Reagan's 1982 executive order 12353, "Charitable Fundraising," which created the modern Combined Federal Campaign under the United States Office of Personnel Management.
Organization
The CFC consists of a number of local committees and a central Office of the CFC. The overall program is overseen by the Office of Personnel Management.
Before 2014, administration was very decentralized. While collecting contributions via payroll deduction was centralized, most of the publicity and distribution of funds was the responsibility of the local committees. Circa 2014, there were 163 such committees. Most of those committees relied on local United Way charities to perform the actual work. In 2014, OPM issued rules to centralize administration of the CFC. OPM argued centralized administration would reduce expenses and eliminate redundant, paper-heavy functions. The first campaign under the new structure took place in 2017. The new structure gave a single charity responsibility for distributing contributions. A reduced number of regional CFC committees were responsible for promoting the campaign. In 2020, there were 36 such CFC zones.
In 2015, OPM awarded a contract to administer the CFC to The Give Back Foundation, a charity based in Madison, Wisconsin. The Give Back Foundation subcontracted to Total Administrative Service Corporation (TASC), a for-profit corporation that runs the day-to-day operations of the CFC. OPM renewed the contract in 2021.
Administrative costs
The CFC spends a portion of contributions on administrative costs. The 2014 rule changes included charging each charity an annual application fee, and if the application was approved, an additional listing fee. Although OPM intended these new fees to cover the entire cost, it continued to need to deduct money from contributions to meet administrative expenses.
According to the OPM, historically, campaign costs have averaged ten percent. However, costs increased and contributions decreased in the period when administration was centralized. Administrative costs for the 2017 campaign were 25%. In 2019, the CFC continued to charge application fees, listing fees, and distribution fees. The distribution fees that year were 19% of pledges.