Some often-asked questions about CFC ...
1. Who determines where my contributions go?
2. What if I do not designate?
3. Will all the agencies listed in the Charity List receive money?
4. Does CFC set limits on how much money an organization can receive?
5. Who determines/selects which charities to list in the Charity List?
6. Why isn't my favorite charity included on the Charity List?
7. Should I choose a charity based upon the lowest overhead rate?
8. I prefer to contribute directly to a charity. Why should I give my charitable contribution through the CFC?
9. How do I know that my gift gets to the charity I designate?
10. How much should I give?
11. Why is there a "Suggested Giving guide"?
12. Will I get a receipt?
13. What happens if I retire or leave my federal agency before the end of the year?
1. Who determines where my contributions go?
You do! when you designate, your gift must go to that charity.
2. What if I do not designate?
Undesignated donations will be distributed among the charities in the same proportion that the charities received designations.
3. Will all charities listed in the Charity List receive money?
Charities receive money only if they receive designations.
4. Does CFC set limits on how much money an organization can receive?
No. The amount of money each organization receives is determined by donor designations.
5. Who determines/selects which charities to list in the Charity List?
Charities apply to be included in either the national, international or local section. Charities complete applications and certifications regarding finances and services. The application requires copies of a charity's: IRS letter of determination as a 501(c)(3) charity, IRS Form 990 (tax information), as well as other information. A national charity must provide programs in at least fifteen states and local charities must have an established location in the local area.
At all levels, Federal employees review charitable applications to determine eligibility.
6. Why isn't my favorite charity included on the Charity List?
Charities must apply annually in order to be included ... so your favorite charity either did not apply or did not qualify. You might encourage your favorite charity to apply. The local application period my vary, but is most often during March.
7. Should I choose a charity based upon the lowest overhead rate?
Not necessarily. The overhead rate of a charitable organization should not be considered the primary indicator of an organization's efficiency or performance. If an organization's overhead appears to be unusually high, a potential donor is encouraged to contact the organization and ask questions about their overhead.
Size of the organization may be a factor - small charities can have a higher overhead with even the smallest of staff and operating expenses. a charity with an annual receipts of $150,000 might have one full-time employee at a $30,000 annual salary, plus expenses for office space, equipment and supplies and already be at 25% overhead. An organization may be all-volunteer operated, and thus reflect little or no overhead.
Type of service - some organizations may receive large contributions of good rather than cash. Any cash that they receive would then be needed for salaries, office supplies, utilities, etc - resulting in a higher overhead rate. New organizations or research-intensive organizations may invest a great deal of money for research or for the start-up costs, well before any specific program expenses can be applied or results can be seen These organizations may have a higher overhead in some years.
Gain of a large revenue source - some organizations are fortunate enough to receive a large endowment gift or grant. They may be able to cover most or all of their operating expenses from that source - resulting in a lower overhead rate; conversely, they may be able to cover most of their program expenses from that source - resulting in a larger overhead rate.
Loss of a large revenue source - if an organization loses a regular large donor, or a grant comes to an end and is not renewed, revenue for that year can be adversely affected and results in a higher overhead rate.
8. I prefer to contribute directly to a charity. Why should I give my charitable contribution through the CFC?
However you give, charities are always grateful for your contribution. However, there are several sound reasons for giving through CFC.
Charities know in March what their revenue from pledges will be, and can plan their programs accordingly Systematic planning is not possible with sporadic individual contributions.
Payroll deduction --available through CFC -- is an easy way to give. Contributors in 2009 gave an average of $242 by payroll deduction, compared with the average cash or check gift of $62.
When you give through CFC, the charity of your choice will also receive a share of undesignated funds.
Charities appreciate that the CFC;s low overhead costs (5.7% in Hawaii) increase revenue for their programs. Often charities have overhead costs for fundraising which are substantially higher than the CFCs ... in other words, it is often less expensive for the agency if you contribute through CFC rather than their having to solicit you directly.
9. How do I know that my gift gets to the charity I designate?
Charities are encouraged to write a thank you when the donor authorizes "release of information" completed on the pledge card. Internal and external audits are performed to ensure that distributions are made correctly.
10. How much should I give?
It's your decision -- give what feel good.
11. What is there a "Suggested Giving Guide"?
In almost any group, anytime someone is asked to give money ... a farewell gift for a retiring worker or a wedding gift for a fellow office mater ... the automatic response is "How much?" The "Suggested Giving Guide" is an effort to answer "How much?"
12. Will I get a receipt?
Because your contribution is tax deductible, donors are encouraged to retain a copy of their pledge card for their records. Donors giving through payroll deduction can use their year-end LES as a receipt. A donor who makes a one-time contribution of $250 or more through cash or check will automatically be sent a tax verification letter from the CFC office.
13. What happens if I retire or leave my federal agency before the end of the year?
Your donation will be stopped by your payroll office.
If you have other questions, please contact:
Honolulu-Pacific Federal Executive Board (808) 541-2637
Hawaii-Pacific Are CFC (808) 543-2233/2232
Office of Personnel Management 202) 606-2564