What is CFC?

What is CFC?

The mission of the Combined Federal Campaign (CFC) is to support and to promote 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.

A Presidential Executive Order created the CFC in 1961 as a meaningful, efficient, once a year work place appeal for Military personnel, Federal and Postal employees to support charities of their choice through payroll deduction. It was established because employees requested a convenient way to give and wanted to end multiple charity appeals in the work place.

Payroll deduction is your key to substantial giving by letting you spread your contribution across the entire year. Payments on payroll deduction pledges begin on the first pay period in January.

CFC --An Opportunity to Help!

CFC is not a charitable agency. It is a service provided to all Federal employees to help them meet their charitable objectives through a convenient, efficient and reliable way of contributing. There are no discretionary funds, every dollar contributed is distributed to the agency or agencies designated by the individual. All funds contributed through the CFC that are not designated to a specific organization or federation will be distributed to the organizations listed in the CFC Charity listing in the same proportion as the contributors designated to them. If an organization receives five percent of the overall donations, then that organization will receive five percent of the undesignated funds. If an organization receives none of the overall donations, then that organization will not receive any of the undesignated funds.

Who is OPM?

The US Office of Personnel Management makes the final decisions on all charities eligible for the National Listing. OPM is also the final administrative level for appeals on national and local applications, providing guidance and technical advice on regulations and had the authority to conduct compliance audits on any CFC fiscal records.

Who is the LFCC?

Also known as the '"Board of Directors" the Local Federal Coordinating Committee (LFCC) approved local and statewide charities that help residents in this area having met the eligibility standards established by the CFC regulations. The LFCC is composed of Federal employees and representatives of labor unions with Federal employees as members. Decisions regarding the inclusion of charities in local campaigns are made by the LFCC. The LFCC's are also responsible for the oversight of the local CFC in conformance with the CFC regulations and policies established by OPM.

Who Sets the Standard of 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 .

OPM annually makes admission decisions for all national and international charity applicants and it 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 PCFO's are required to have completed by an independent CPA.

What is the Structure of the CFC?

The CFC is made up of 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 with Federal employees as members. The LFCC 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 (LFCC's and PCFO's).

What is 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. Key elements include: the organization's five-digit CFC Code, the legal name in parentheses shows if it is "doing business as" under another name, the employer identification number (EIN), 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 http://www.abccharity.org/ EIN#12-3456789 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

How Do I Make An Informed Giving Decision?

The EIN, AFR, and the Service Categories are included to help donors identify organizations that meet their interests and performance standards.

The 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.

The AFR represents the percentage of dollars spent on administrating 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. Potential CFC donors should carefully review the circumstances applicable to the potential charities of their choice to be certain they fully understand and accept the AFR situations for such charities before donating to them. 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.

Taxonomy Codes

Each Organization can identify up to three categories, in priority order, which most closely identify the type of mission,services, and activities provided. The corresponding letters will be printed in your organizations listing in the CFC Charity list to assist donors identifying charities by type of service provided. Categories are derived from the National Taxonomy of Exempt Entities (NTEE) classification system developed by the National Center for Charitable Statistics. The 26 categories are:

A Arts,Culture, and Humanities

B Education

C Environment

D Animal Related

E Health Care

F Mental Health and Crisis Intervention

G Voluntary Health Associations and Medical Disciplines

H Medical Research

I Crime and Legal Related

J Employment

K Food, Agriculture and Nutrition

L Housing and Shelter

M Public Safety, Disaster Preparedness and Relief

N Recreation and Sports

O Youth Development

P Human Services

Q International, Foreign Affairs and National Security

R Civil Rights, Social Action and Advocacy

S Community Improvement and Capacity Building

T Philanthropy, Voluntarism and Grantmaking Foundations

U Science and Technology

V Social Science

W Public & Societal Benefit

X Religion-Related

Y Mutual & Membership Benefit

Z Unknown

For additional guidance on selecting charities, visit the CFC website at http://www.opm.gov/cfc/html/qfd.asp

What Are Affiliated, Independent Organizations and Federations?

Affiliated organizations receive services from a Federation that supplies common fundraising, administrative, and management services to its member organizations. Charitable organizations participating in the CFC as a member of a federation may pay dues or fees to that federations 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 federations annual report.

How Do I Designate Organizations to Receive My Contribution?

If you wish to designate all or some portion of your contribution to a federation, please record that federations corresponding code number on your pledge form. The Federation name will be listed at the top of the list of the federations member organizations. Contributions designated to a federation will be shared in accordance with the federations policy. If you wish to designate all or some portion of your contribution to an affiliated member organization please record that organizations corresponding code number on your pledge form.