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Washington State University CFD About the CFD

Administrative Fees

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.
  • Technology support.
  • Staff salaries and travel.
  • Contracted professional support.
Administrative costs are critical because they provide the support needed to coordinate a large campaign like the CFD. Millions are raised every year for thousands of charities. Administrative work ensures the money goes to the appropriate charity.
Each of the charities share in the administrative expenses proportionate to the funds raised for their organization during the campaign. Charities participate in the Combined Fund Drive and other workplace giving programs because it is one of the most inexpensive forms of fundraising for charities. It lowers their own administrative costs because they receive one consolidated check from the CFD each quarter which reduces their accounting expenses.

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.

Example Calculation

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.