Proposed Final CFC Regulations Published by Federal Times

Substantial changes in how the CFC is to be administered are close to being finalized, and stuff according to an article published this evening by Federal Times.  The government appears close to

  • Eliminating PCFOs, salve with one or more “Central Campaign Administrators” taking over their back-office functions and locally hired “Outreach Coordinators” providing community based marketing support.  The proposed final regulations retain the local volunteer system: the “Local Campaign Coordinating Committees” or “LFCCs.”
  • Requiring that charities pay a flat non-refundable “Application Fee” when they apply to the CFC and a second “Listing Fee” when the CFC approves their participation.  A third fee, a “Distribution Fee,” will be assessed if the first two fees do not raise enough funds to cover the cost of the campaign.
  • Requiring federations to end the practice of withholding their own membership fees as they transfer payroll donations to affiliated charities.  Federations will need to bill these fees separately.
  • Allowing new federal employees to participate in the CFC within 30 days of their joining the government even if they are hired at a time when the CFC is not soliciting pledges.
  • Eliminating donations by cash
  • Easing the requirement that charities use accrual accounting and provide a full audit. National and local charities will only be required to provide such an audit if their annual income was above $250,000. Charities with annual income between $100,000 and $250,000 will be required to provide a copy of a CPA review.
  • Extending the CFC solicitation period, to run as late as January 15.

The draft regulations as published by Federal Times indicate that the government will back off its earlier proposal to eliminate the printed Charity Directory and pledge cards.  The document states that the government will allow the continued use of the traditional directory and cards for another five CFC cycles.

The draft regulations announce that the new procedures and rules will take effect with the start of the 2015 CFC admissions season – in other words, late in the fall of 2014.

We will provide a more complete review of the draft final regulations soon.