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Dear Nonprofit Partners,Ìý

On January 16th, I reached out to you all with anÌýupdateÌýregarding the Combined Federal Campaign (CFC), the federal government’s workforce giving program.Ìý At that time,Ìýthe 2017 campaign had just come to a closeÌýand there had been some negative press surrounding the health of the program.Ìý ¾«¶«Ó°Òµâ€™s Charities wanted to set the record straight in the midst of this speculation and inform our membership of what was known andÌýwhatÌýstill remained unclear.ÌýÌýAt that point in time, there was still aÌýlotÌýthat remained unknown and I promised to be back in touch as soonÌýas we received new information.Ìý

ToÌýrecap, beginning with the 2017 campaign, a new set ofÌýcampaignÌýrulesÌýtook effect.ÌýÌýThroughout the many years leading up to the implementation of thisÌýnew rule, the team at ¾«¶«Ó°Òµâ€™s Charities hasÌýadvocated on behalf of the interests of our membership and has keptÌýmembersÌýapprised during all phases of thisÌýprocess.ÌýÌýÌý
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As noted in myÌýJanuaryÌýemail, theÌýimplementation of certain provisions of the new rule proved challenging and we believed that the CFC team at the Office of Personnel Management (OPM) triedÌýto do too much at once, including implementing a change in technology, a new campaign structure, a new fee structure, volunteerism and solicitation of retirees.Ìý Added together with the natural disasters and subsequent relief efforts,ÌýIÌýhad noted that a decline in the campaign was expected but that it was still too early to tell since final campaign results were not in.Ìý
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Today we received confirmation that the 2017 campaign total is $101 million, which is a $66 million decrease from the prior year campaign. We alsoÌý recentlyÌýreceivedÌýthe first distribution report for our members.ÌýÌýIn addition to the application and listing fees already paid by participating nonprofits to cover campaign expenses,Ìýa third distribution fee of 16.5%Ìýhas beenÌýassessed on charity pledges in order to cover overall campaign costs.Ìý From review of the reporting provided, it appears thatÌýthe bulk of this feeÌýhas been taken fromÌýthisÌýfirstÌýdistributionÌýpayment. TheÌýtotal cost of the campaign is not yet knownÌýnor is the total rate ofÌýparticipation.Ìý
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While we are disappointed byÌýthis resultÌýand its implications for you,Ìýour valued partners,Ìýwe still remain hopeful that a lot of the issues experienced in the prior campaign will not be repeated.Ìý We believe a large number of the problems with the campaign occurred as theÌýresult ofÌýthe rushed implementation of many different,Ìýcritical aspects of theÌýprogramÌýand that many of theseÌýissuesÌýwillÌýbe resolved prior to the start of the next campaign, if they have not been already.Ìý

We are also working, both independently as well as collectively with other campaign stakeholders, to provide feedback to campaign officials on how things may be improved moving forward,Ìýas well as to get assurances that a lot of these issues will not be repeated.ÌýÌý We are hoping to speak soon with the Office of the CFC and will provide our suggestions and counsel.Ìý We will also be seeking answers to any questions that currently remain unanswered, such as total campaign costs.Ìý

Should you have any questions, wish to provide feedback or would like to discuss in further detail, please do not hesitate to contact me or Robyn Neal, VP, Client Engagement Solutions at 800-458-9505 extension 5349.Ìý We will also be discussing the CFC inÌýgreat detailÌýat ourÌýMembership Assembly on Friday, May 11^th,Ìýwhich we invite you to attend in person or via Livestream.Ìý

Thank you as always for your partnership.Ìý

Sincerely,
Jim Starr
President and CEO
¾«¶«Ó°Òµ’s CharitiesÌý