The Obama administration will issue new federal employee charitable giving regulations that it says “will mean that more of a Federal worker’s contribution to the CFC will go directly to the charities they want to help.”
Charitable leaders, however, fear the new rules will result in fewer donors and lower contributions to the Combined Federal Campaign.
The CFC funnels donations from federal employees to charitable organizations. The new regulations were submitted by the Office of Personnel Management last week and will be published in the Federal Register soon.
The new rules say cash donations will be eliminated, all charities will pay a nonrefundable application fee and, in an effort to streamline operations, the distribution of funds to charities will move from more than 150 CFC financial centers “to one or a few Central Campaign Administrators (CCA).”
Centralization is one of the main concerns of leaders of charitable organizations.
“The way charitable giving works best in the workplace is when a fellow employee asks another employee to give to something that they care about and that they know about,” said Steve Taylor, senior vice president of United Way Worldwide. “With the centralization, with the lack of authority from the local employee committee, you lose that.”
In an OPM blog post, Katherine Archuleta, the agency’s director, acknowledged the criticisms, saying “We understand that some groups have expressed apprehension over these changes. We take these concerns seriously and remain fully committed to working closely with charities and key stakeholders as we implement the final rule.”