Work on the annual Combined Federal Campaign (CFC) has been halted by the federal Office of Personnel Management (OPM) just weeks prior to the annual workplace giving program for federal workers was to launch.
In a statement to media, OPM said agencies are being asked to pause all CFC support activities while the administration decides whether to continue the program. The Washington Post reported that the OPM issued a stop work order on August 26, which will impact the campaign’s website construction and launch.
A nonprofit executive told The NonProfit Times that “contractors who work on CFC were given verbal stop work orders last week, but not in writing. Supposedly it’s being publicly announced on September 1 — which is the holiday. The reason being given is that it was decided government shouldn’t be involved in campaigning.”
The CFC has raised nearly $8.7 billion for charities since its formal inception in 1961, although some type of federal employee giving has been in place since the 1940s. The CFC raised more than $66 million during 2024, with the average pledge increasing to nearly $1,000.
The CFC sends money monthly to more than 4,400 charities designated by federal employees, retirees, and contractors with donations made through payroll deductions. The number of designated charities declined from 7,515 in 2017 to 4,400 in 2023. The value of volunteer hours from 2017 to 2023 ranged from $1.9 million to $3.04 million, which is added to the reported donation figure.
“A pause in CFC giving will be devastating for hundreds of area nonprofits that rely on this essential funding each year. Many of United Way of the National Capital Area’s partners receive between $100,000 and $700,000 yearly,” Rosie Allen-Herring, president and CEO of United Way of the Capital Area, told The NonProfit Times in exclusive comments. The nonprofits “rely on this steady stream of support for critical programs that provide food, shelter, healthcare, and essential services to thousands of residents each day. Organizations in the National Capital Area that will be impacted by this federal change include the Capital Area Food Bank, So Others Might Eat, Arlington Food Assistance Center, and Martha’s Table, among hundreds of others,” she said.
United Way of the National Capital Area has raised more than $225 million through the CFC since 2004 for hundreds of nonprofits in the Washington, D.C. The United Way of the National Capital Area CFC campaign in 2024 garnered $5.7 million to support nonprofits in the region, Allen-Herring said.
“With the many reductions in force that have occurred this year, many federal workers who were once some of our most avid donors could become United Way of the National Capital Area clients themselves. Monies from the CFC are needed now more than ever,” she said.
“At a time when federal budget cuts are already straining nonprofits, any disruption to CFC funding will directly affect thousands of families living below the poverty line, as well as those who are ALICE — Asset Limited, Income Constrained, Employed,” said Allen-Herring. ALICE families are working households above the federal poverty income level, but are still struggling to afford basic necessities such as housing, childcare, food, transportation, and health care.
A coalition of nonprofits sent action alerts to organizations around the nation asking local nonprofit leaders to pressure their local federal representatives to support the CFC, which was created via executive order during the administration of President John F. Kennedy. The action alert includes suggested text for a letter to Scott Kupor director of the OPM.
Nonprofits will not only lose the revenue from donation stoppage, but also be out of pocket for cash spent on preparation. “Nonprofit organizations participating in the CFC have already spent millions of dollars in application fees and marketing materials for the new campaign year. Finding out that the program may be shut down just as it is about to begin would be yet one more financial blow to the sector,” said Shannon McCracken, president and CEO of The Nonprofit Alliance in Washington, D.C.
