Archive for June, 2008
Seven Myths about the Combined Federal Campaign (CFC)
by Bill Huddleston, CFC Expert
There are a number of myths and misconceptions about the Combined Federal Campaign (CFC) in the non-profit world. In a time when many non-profits are worried about their fundraising efforts in a troubled economy, it can hurt to learn a little bit about the world’s largest workplace giving campaign.
Here’s a list of the first seven myths:
1. Myth It is hard to get into to the CFC.
Fact 94% of nonprofits that apply are admitted.
The CFC actually has an “open admissions” program. If you meet the criteria, your non-profit is in. The acceptance rate is 94%, and in general the 6% that don’t get in are the ones that don’t follow the directions. There are exceptions to this, and for non-profits that don’t get in, but believe that they should, there is an appeals process.
What is the appeals process at the foundations where you’ve applied for grants, if you are unsuccessful?
2. Myth The CFC doesn’t raise significant money.
Fact $1 Billion Dollars of Unrestricted funds in the past 5 years.
In the past five years, CFC donors have contributed more than $5 billion dollars to thousands of local, national, and international non-profits. CFC monies are unrestricted, reliable and predictable.
3. Myth The only place that has Federal employees is Washington, D.C.
Fact 89% of Federal employees live outside of the Washington, DCSS region.
The National Capital area CFC is the largest CFC, but there more than 250 regional CFCs, and 40 of these raise more than $1 million annually in their region.
4. Myth The CFC is only for the “big guys” (National Nonprofits).
Fact 40% of the funds raised go to local nonprofits
5. Myth There’s a lot of red tape.
Fact No more than any grant application, much less on the “back end.”
The regulations were substantially streamlined in 2006, so even if this was the case before, things have changed. There is zero red tape for the non-profit after the funds are received — (not bad for a government program!)
6. Myth Some “expert” is going to decide if our non-profit gets any money.
Fact More than 90% of the funds are designated to specific charities.
The ones deciding who receives the funds are your supporters who are Federal employees who choose to donate through the CFC.
7. Myth CFC Donors are fickle
Fact Most CFC donors are multi-year donors.
How many ten year grants have you gotten from foundations that support your organization?Read Full Post | Make a Comment ( None so far )
New Nonprofit Metric – Dollars Raised per Word Written
(In grant applications, fundraising letters, workplace giving catalog descriptions, web page donation forms, etc.)
By Bill Huddleston, CFC Expert
Why is workplace giving the most cost-effective means of fundraising for non-profits? My particular expertise is with the Federal Government’s workplace giving program the Combined Federal Campaign (CFC), and this analysis is based on the CFC.
If the CFC were a foundation, in terms of actual giving, it would be in the largest corporate foundation in America, with Federal public servants donating more than $270 million dollars in the 2007 campaign. (The largest corporate foundation is the Aventis Pharmaceuticals Health Care Foundation which gave $221 million in 2006).
CFC streamlined approach to fundraising:
Each year there is an application process, less time consuming than almost any grant application. Ninety-four percent of charities who apply are enrolled, and the six percent that do not get in, are in general, those that failed to read the directions. (They have been some exceptions to that, and there is an appeals process). This application we will say is about 10 pages worth of material (similar to a grant application in length, but only the campaign management sees it, the individual donors do not see the applications).
Each fall, all Federal employees are given their region’s CFC catalog, which has 25 word descriptions of all charities in that region’s CFC. The CFC non-profit is the one who writes the 25 word description. So the written material that the donor is basing her or his giving decision, is the 25 word description, plus the website if desired.
It’s not unreasonable for a small to medium size local non-profit to receive $10,000 in donations from CFC donors — certainly some non-profits receive more, and some receive nothing. More than 90% of the donated funds are designated to specific charities. It’s also reasonable for a national non-profit (not the huge ones) to receive $50,000 from the more than 250 regional CFCs.
So using those numbers: Let’s compare what is the most efficient means of fundraising:
that is awarded:
Foundation Grant Application:
10 pages, 400 words per page, Total: 4000 Words
For a $50,000 Grant Dollars per word: $12.00
For a $10,000 Grant, Dollars per word: 2.50
$50,000 in CFC donations
(multiple donors, but the non-profit only had to write one 25 word description:
$50,000 in CFC donations Dollars per word: $2000.00
$10,000 in CFC donations Dollars per word: 400.00
So in terms of dollars raised, per effort expended (the definition of leverage), CFC fundraising is 160 times more efficient than the grant application (2000/12 or 400/2.50 equals 160).
With the CFC, there is an added bonus to the leverage equation:
Follow-up activities after monies are awarded:
Foundation Grants – Extensive, varies by foundation.
CFC – Zero, no red tape for follow-up. Pretty good for a government program!
The CFC charity has to apply each year, but there are no follow-up requirements.Read Full Post | Make a Comment ( None so far )