US Charitable Fundraising Scheme Faces Uncertain Future After Federal Pause

Oklahoma City — A long-standing American government fundraising programme that has channelled billions of dollars to nonprofit organisations over the past six decades faces an uncertain future following a temporary suspension by federal authorities.

The Combined Federal Campaign (CFC) — a workplace giving initiative for US federal employees, retirees, and contractors — was paused just over a month ago amid calls for reform. Officials described the move as temporary, allowing time for the 2025 campaign to proceed, but indicated that “significant change would be coming.”

Typically launched each September, the CFC enables members of the federal sector to select charities to which they can donate or volunteer. For many nonprofits, this annual support plays a crucial role in shaping budgets for the following year’s work.

A Legacy of Presidential Support

The CFC’s origins trace back to 1957, when President Dwight D. Eisenhower established the President’s Committee on Fund-Raising Within the Federal Service to review federal giving programmes. President John F. Kennedy later formalised the process in 1961 through Executive Order 10927, granting authority to the United States Civil Service Commission to manage charitable solicitations among government employees.

The structure of the modern CFC was introduced in 1982 under President Ronald Reagan, who placed the programme under the oversight of the US Office of Personnel Management (OPM). Since then, it has evolved into the government’s principal vehicle for employee-based charitable giving.

Eligibility and Oversight

Nonprofits seeking inclusion in the campaign must meet eligibility criteria set by OPM and the CFC team. These include operating for at least three years, demonstrating the delivery of real services, and engaging federal employees in philanthropy. Applications are managed through an online system and may require annual renewal, ensuring that only verified organisations participate.

Over its lifetime, the CFC has distributed approximately $9 billion to approved charities. The campaign’s peak year was 2009, when donations reached around $282 million.

Concerns Over Declining Donations

The Oklahoma Institute for Child Advocacy (OICA), one of many nonprofits benefitting from the campaign, has received modest sums from federal and state contributors in previous years. The organisation warns that eliminating this source of funding could have significant consequences for the charitable sector.

“Many organizations with higher profiles receive substantial sums which could significantly diminish their mission if this funding stream were eliminated,” an OICA spokesperson said.

The group also acknowledged the government’s concerns about administrative costs and declining participation. “We certainly understand concerns overseeing the program form CFC,” the statement read.

According to OPM Director Scott Kupor, who served under President Donald Trump, contributions have decreased in recent years, while the costs of running the scheme have risen. “Donations have declined in recent years, and administrative costs have grown to oversee the program, which in turn sends fewer funds to nonprofits that also have administrative costs,” Kupor stated. He added that the CFC “made sense pre-internet – when donors lacked more automated and efficient ways to direct dollars to their favorite charities.”

Call for Reform Rather Than Elimination

Despite acknowledging these issues, OICA maintains that the campaign remains vital to the nonprofit community. “While these concerns are certainly valid, we at OICA feel this is a program worthy of retention,” the organisation said.

Supporters argue that beyond fundraising, the CFC provides educational value by allowing employees to learn about different charities through workplace events. They note that employee giving can also create a reliable and sustainable revenue stream for charities, reducing their overall fundraising costs.

OICA also highlighted the broader financial incentives for individual donors. “It is a simple task to itemize deductions on Schedule A of Form 1040 when dealing with your own taxes. The above-the-line deduction for cash donations to qualified charities reinstated in 2026 will make sense for giving,” the statement added.

Encouraging Corporate Engagement

The advocacy group suggested that organisations with strong community values could consider matching gift programmes to encourage employee participation. “Offering matching gifts can incentivize employees to contribute more, which can be a win-win for both the charity and the employee,” it said.

Future Unclear

As policymakers debate the programme’s long-term viability, OICA urged federal decision-makers to assess the broader consequences before making structural changes. “In a difficult time for charitable nonprofits, we strongly encourage those decision makers at the federal level to weigh the cost and the benefit of CFC. We hope they can find a way to continue support through this process in a streamlined manner that does not diminish the work done for children and other services through charitable giving,” the organisation said.

While the future of the CFC remains uncertain, nonprofit leaders stress that its loss could weaken one of the most enduring partnerships between federal employees and charitable organisations in the United States.