Action By Nonprofits Saves The Combined Federal Campaign

The stop work order on the Combined Federal Campaign (CFC) has been lifted by the U.S. Office of Personnel Management (OPM) and the foundational workplace giving campaign for federal workers will continue. Nonprofits would have lost the revenue from donations and be out of pocket for cash spent on preparation.

Nonprofits pressured the Trump administration, led by The Nonprofit Alliance, the National Council of Nonprofits and United Way Worldwide. Executives from just fewer of 400 nonprofits signed their organizations onto a letter asking the OPM to not cancel the annual CFC which has raised nearly $8.7 billion since its inception.

“The Nonprofit Alliance was gratified to learn of the reversal of an earlier decision to pause the Combined Federal Campaign (CFC). As our coalition previously raised, the CFC facilitates charitable giving and provides important revenue to the nonprofit sector. We want to thank the nonprofit community for its support in quickly messaging our clear and unwavering support for this critical program,” said Ann Hollingsworth, vice president, government affairs at The Nonprofit Alliance.

The letter from 390 organizations was sent to Scott Kupor, director of the OPM. It read in part: “On behalf of The Nonprofit Alliance and 389 other co-signers that represent a broader coalition of charitable organizations participating in the Combined Federal Campaign (CFC), we write with urgent concern regarding reports that OPM is considering eliminating the Combined Federal Campaign entirely for 2025, with the campaign scheduled to begin in October.” The letter was signed by The NonProfit Alliance and a coalition of CFC participant charities.

A separate letter stressing the need for the CFC was sent to Kupor by the National Council of Nonprofits and United Way Worldwide.

As previously reported in The NonProfit Times, OPM said via a statement to media that federal 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.” The coalition submitted “an emergency meeting request on behalf of coalition partners” to discuss the issue.

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, CFC data shows. The CFC was created via executive order during the administration of President John F. Kennedy.

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.

In the initial letter, the charities thanked “the White House, the Office of Personnel Management, and Congress for their collective decision not to pursue the harmful 10% administrative fee on federal employee payroll deductions during Budget Reconciliation proceedings. This decision demonstrated clear recognition of the CFC’s vital role in supporting our nation’s most vulnerable communities and preserving the integrity of federal employee charitable giving.”

The signers reminded officials of the federal government’s previous support and that cancellation would represent “a significant departure from the federal government’s longstanding commitment to fostering a culture of service and civic engagement among its workforce. Federal employees have consistently demonstrated their dedication to supporting charitable causes through voluntary contributions, and the CFC provides an efficient, transparent, and administratively streamlined mechanism for channeling this generosity where it is most needed. The program serves as a tangible expression of federal employees’ commitment to public service that extends beyond their official duties.”

Eliminating the CFC would have done tangible damage to nonprofits, particularly in the Washington, D.C., and surrounding communities. “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 prior to the announcement the CFC would live on.

Signers of the letter included the American Diabetes Association, America’s Best Charities, CASA of Central Texas, Catholic Charities of the Diocese of Arlington, Christian Military Fellowship, DAV Charitable Service Trust, DC Central Kitchen, Earthjustice, Jewish Council for the Aging of Greater Washington, Marine Corps-Law Enforcement Foundation, Meals on Wheels America, Prostate Cancer Research Institute, Ronald McDonald House Charities of Northeast Ohio, United Way of the National Capital Area and Wounded Warrior Project.