An Initiative of the Workplace Giving Alliance

about workplace fundraising

Federations

Federations are a feature of most workplace campaigns. These organizations are authorized by campaign sponsors to perform certain administrative functions. Each federation must be an independent, 501(c)(3) tax-exempt corporation governed by a volunteer board of directors. Federations review applications, provide marketing services, and distribute donated funds.

There are 37 national federations within the CFC. Applicants are not required to affiliate with a federation to enter the CFC, but most do – for three key reasons.

Admissions support. Federations assist groups in preparing their applications. While eligibility requirements are public, preparing a successful application may not be intuitive. Federations can help applicants understand what is required, spot application weaknesses early in the process, and advise on ways to address them.

Increased visibility. Most federations are organized around a specific theme. Thematic federations make it far easier for donors to find and support groups they are interested in. Campaign directories are often quite lengthy: In the CFC the directory of approved groups has about 100 pages. Federations are usually listed at the front of these directories in the table of contents, so donors interested in supporting a specific kind of work can easily find a focused list of relevant organizations.

Fiscal services. Federations substantially reduce the administrative burden of processing donations. In the CFC, for instance, over 250 administrative units conduct the fall fundraising drive. In the year that follows, each unit individually reports pledges and forwards pledged moneys – potentially creating a mountain of correspondence and thousands of checks for each charity. Federations receive the correspondence and payments on behalf of their members. They report consolidated pledge information to members, track payments, and make regular, lump-sum distributions of donated funds.

 


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