Each year, Washington State public employees and retirees participate in the state’s workplace giving campaign, the Combined Fund Drive (CFD). The CFD is allowed by state law to deduct reasonable administrative costs* from the campaign contributions to run the campaign (WAC 357-55). Administrative costs pay for:
- Volunteer coordinator training and recognition.
Printing of campaign materials, development of the CFD video, postage, supplies.
Staff salaries and travel.
Contracted professional support.
How Funds Are Collected and Distributed
Contributions are collected from employees each pay period and deposited to the CFD account with the State Treasurer to earn interest. Employees have the choice of giving directly to a specific charity and/or to the CFD’s “non-specified” fund. Before each quarterly distribution of donations, the CFD deducts administrative expenses from the total of the specified and non-specified donations and interest. The remaining total is sent to the charities.
Donations to Specific Charities + Donations to the “Non-specified” Fund + Interest – Administrative Costs = Charity Distribution
Example: CFD campaign*
Administrative expenses were 8.25%**
Donations to Specific Charities $5,030,845.14
Donations to the CFD General Fund*** $646,466.95
Interest Earned $48,809.50
Total Raised $5,726,121.59
Less Admin Costs – $472,387.49
Distributed to Charities: $5,253,734.10
* This example contains preliminary figures.
** National studies show that fundraising costs less than 25% are considered to be “reasonable”. Source: Better Business Bureau Wise Giving Alliance, The American Institute of Philanthropy, The Center on Philanthropy at Indiana University.
***Donations made to this fund are distributed to all charities receiving donations each quarter and are disbursed on a prorate basis.