Anonymous Combined Federal Campaign (CFC) Donors are Altruistic Givers
The Combined Federal Campaign (CFC) is the Federal government’s workplace giving campaign, and through it Federal public servants have donated more than $1 billion to thousands of local, national and international non-profits over the past five years. CFC monies are unrestricted, reliable and predictable.
CFC Anonymous Donors - Two Categories
For the donor, in addition to the CFC being the most donor friendly (by far) means of giving to a charity they care about, the donor has two different ways to remain anonymous. On a CFC pledge card, there is a check box that asks “Do you authorize the release of your name and contact information (address & e-mail) to the charities that you have donated to?” If yes, please put a check in the box and sign the release statement.
The feature of remaining anonymous to the charities that they care about is actually one of the favorite aspects of the CFC campaign to many Federal donors. There are no studies that show what the percentage is, but having seen thousands of pledge cards during my Federal career, it would not surprise me if it’s above 50%. This is where a big disconnect comes in between being truly donor friendly, (which most non-profits espouse) and their initial reaction to truly anonymous donors—- which is almost always to be irritated because they do not know who they are.
If they actually thought about it minute, they would realize that anonymous donors are some of their biggest champions, they obviously know enough about the organization to give to it, and they just don’t want the additional mailings, etc. In many cases, they are probably seeing information about that non-profit on their website, in community meetings, etc.
This is one category of anonymous donor, where the non-profit does not get any information about the donor, but the Federal employee’s colleagues may know that he or she donated, and participated in the CFC campaign (they would not know which charities or what amount was given unless the giver told them, that information remains confidential).
The second type of anonymous giving that is available to the CFC donor, is that to give in the campaign but in a completely confidential way, where even the campaign coordinators have no idea of any amount that was given. Federal donors have the option of asking for a “CFC Confidential Contribution” envelope, and if they choose they can give this way, although a very small percentage of donors use this option (less than 1%).
Yes, these donors can take a tax deduction if they itemize on their return, but I submit this case as an example of altrusitic giving. The main reason people give is that care about others, not that it advances their own economic self-interest. For the CFC anonymous donor they are the only one that knows if they gave at all, and how much they gave.
Don’t forget, there’s a reason that economics is called the “dismal science.” One of my favorite quotes is this one by Bobby Kennedy (April 1968):
“Gross National Product counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage. It counts special locks for our doors and the jails for the people who break them. It counts the destruction of the redwood and the loss of our natural wonder in chaotic sprawl. . . . Yet the gross national product does not allow for the health of our children, the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country. It measures everything, in short, except that which makes life worthwhile. And it can tell us everything about America except why we are proud that we are Americans.”
Regards,
Bill Huddleston, CFC Expert
P.S. If you want to learn why the CFC is the most donor friendly means of contributing to non-profits, please go to http://www.cfcfundraising and request the CFC special report. Thanks.
You make an excellent point, and one that I think is well understood by anyone who has worked closely with major donors for very long. Among my colleagues and professionals associated with major gifts, this is not even a matter of much debate.
My experience working with major donors for the past 10 years matches well with your experience. Who says altruism has to result in a real neutral or even painful result to the donor in order to be pure? As Kristen Renwick Monroe discusses in her book, “The Heart of Altruism,” even people who risk their lives to save others often derive personal satisfaction from a lifestyle of concern for other people.
I also agree with the assertion that in general you can’t have a tax-deduction situation in which the donor ends up with more money than they started with—at least in income tax, current lifetime gift situations.
The estate tax may be a possible exception to this rule—although I still agree that in general most estate donors are still primarily motivated by a desire to help others. There are sometimes ways to structure planned gifts to avoid estate, income, and capital gains taxes, increase income for the donor while they’re alive, and also end up with more money for the children than the family would have if they had kept all the assets and paid estate and capital gains taxes. Occassionally people can become interested initially by these tax incentives, but then eventually realize great personal satisfaction as they realize they’re also blessing other people.
Sometimes observers also assume that near-immortality through a naming opportunity can be a significant motivator for a gift. This may be possible for some donors, but I’ve also worked with several high-porofile naming situations in which the gift and its’ positive impact on others was the donor’s primary interest, and the naming opportunity of the endowment or building was promoted by the charity. Many donors, especially high-profile ones, are extremely resistant to their name being listed or others being aware of their giving—for fear they’ll be hassled with countless additional requests for funds.
It is common practice for organizations to produce lists of donors who give at smaller amounts—on patio stones, bricks, plaques, and brochures. But, I wonder if there is any research that actually demonstrates this induces people to give more than they otherwise would have. I still suspect you’d find these donors’ connection to the cause is far more important than having their name listed somewhere.
Thanks for the comment Varden. It is interesting that most of the people who work with high net worth donors and the donors themselves agree with my comments (and yours). Yet most people in general do not. I’ve also noted that even high net worth donors will often make the “it is just for the tax deduction” assumption when they are discussing people with even more wealth than them. I think this is why so many people doubt Buffett’s motivations (not many people have more money then him!
People have their own reasons why they donate or give to charity whether monthly, weekly or yearly. But most of them really wanted to help without expecting anything in return. Some people give because they want to expose themselves might as well their business as well because they believe that it’s a win-win situation to do that. Their aim is still to help but they want to become known as well.
BYJoanne Fagan, Eva's Village Communications and Gra
I think a great book to help shield light on why people give to charity is Seider’s book “Shelter: Where Harvard Meets the Homeless” that looks at the impact of volunteering on Harvard students & what volunteering and community service can provide in terms of personality growth. In one sense, giving money is much easier than giving time, but I think the benefits are the same. It’s just that when you give your time, you’re getting more of the same benefits (e.g., a feeling that you’ve really helped someone) plus extra benefits, such as becoming closer with others who are helping.
At Eva’s Village, we run one of the most active volunteer organizations in the state: we have an active individual volunteer program and a corporate volunteer program, called “Bond, Boost, & Build: Team-building opportunities for corporate volunteers.”
We offer these volunteer programs not only because it greatly assists us in our many charitable activities but also because corporate volunteer studies (see Cathleen Wild’s report, “Corporate volunteer programs: Benefits to business,” 1993), and our own experience, shows a wide range of benefits of volunteering such as an increased sense of well being, an increase in self-confidence, a decrease in personal depression, and stronger group bonding (one of the main benefits of our “Bond, Boost, & Build” volunteer program).
In the end, we give our time and our money because, in giving, we find that we received as much, if not more, than what we gave.
This is a really interesting topic. I think people usually feel good about doing something positive for another person. Giving to charity can be so rewarding because you know that you’re helping others in need. Thanks for a wonderful post!
Giving to charity is different for everyone. Some like knowing that donating is helping others and some also appreciate the tax deduction. I myself have given to charity because I at one point had an over abundance of collectibles that I inherited. I did end up keeping some but didn’t have the room to store everything. Rather than dealing with buyers trying to get them for a small amount I finally came to the conclusion donating might be the best answer. And yes I did receive a tax deduction for my items but was also glad to know my donation would benefit someone else. The charity I donated to is https://www.collectibleswithcauses.org. I chose them because they are an IRS 501(c)3 certified non profit organization. Their website has all the information you need plus their EIN number if you want to make sure they are legit. I had a good experience with donating so I wanted to share. If looking into donating as an option check out https://www.givingcenter.org
Why do people give to charity? Many people have their own reasons for donating to charity some of the positive reasons are they want to give many to their lives, be a positive role models for others, make their lives feel richer, help others who need the help, and people able to meet others in the community.Charities are very important in communities because communities help each other. If we did not have charities we could not change the lives of others, and especially in times of need. Charities do not just improve the lives of people but also on a nation wide level. It is our responsibility as a community to help others and by donating to charity this makes it possible for us to help others who need the help. One of the best places to donate to charity is Online car donation. Online car donation is a non profit organization that has worked with many donors all over the world. Our charity works seven days a week and will pick up your vehicle donation when it`s covenant for you. We work nationwide and take all different kinds of vehicles. Donate car to charity and receive a maximum tax deduction for your donation. Car donations help many donors financially and also gives them a chance to help others as well. Car donations have helped families and individuals all over the world. When donors donate they are saving many lives with their car donation you will be helping any cause of your choice. Donate today and give to people who need the help.
It’s great that you elaborated on the main reason why people donate to charity and how their internal satisfaction is the huge reason behind it all. I saw a video last night of a charity auctioneer and wondered where all the money goes. Maybe I’d understand it better if I were to do my own research about how this auction works.
It was interesting how you mentioned that some people will tend to donate to charity towards the end of the year when they’re interested in a tax break. My father-in-law just mentioned to me last weekend that he’s hoping to find a good charity to donate some of his money to. He’s hoping to find a place where that money can help with education for children.
I loved how you said that it’s in our human nature to give help to others who are in need. Last night, I watched a documentary about poverty, and it hit me so hard that I’m actually considering on donating to some of the good charities out there. That being said, I’ll look for ones that support child education, because I believe that they should be prioritized.
COMMENTS
BY Bill Huddleston, CFC Expert
ON June 27, 2008 10:38 AM
Anonymous Combined Federal Campaign (CFC) Donors are Altruistic Givers
The Combined Federal Campaign (CFC) is the Federal government’s workplace giving campaign, and through it Federal public servants have donated more than $1 billion to thousands of local, national and international non-profits over the past five years. CFC monies are unrestricted, reliable and predictable.
CFC Anonymous Donors - Two Categories
For the donor, in addition to the CFC being the most donor friendly (by far) means of giving to a charity they care about, the donor has two different ways to remain anonymous. On a CFC pledge card, there is a check box that asks “Do you authorize the release of your name and contact information (address & e-mail) to the charities that you have donated to?” If yes, please put a check in the box and sign the release statement.
The feature of remaining anonymous to the charities that they care about is actually one of the favorite aspects of the CFC campaign to many Federal donors. There are no studies that show what the percentage is, but having seen thousands of pledge cards during my Federal career, it would not surprise me if it’s above 50%. This is where a big disconnect comes in between being truly donor friendly, (which most non-profits espouse) and their initial reaction to truly anonymous donors—- which is almost always to be irritated because they do not know who they are.
If they actually thought about it minute, they would realize that anonymous donors are some of their biggest champions, they obviously know enough about the organization to give to it, and they just don’t want the additional mailings, etc. In many cases, they are probably seeing information about that non-profit on their website, in community meetings, etc.
This is one category of anonymous donor, where the non-profit does not get any information about the donor, but the Federal employee’s colleagues may know that he or she donated, and participated in the CFC campaign (they would not know which charities or what amount was given unless the giver told them, that information remains confidential).
The second type of anonymous giving that is available to the CFC donor, is that to give in the campaign but in a completely confidential way, where even the campaign coordinators have no idea of any amount that was given. Federal donors have the option of asking for a “CFC Confidential Contribution” envelope, and if they choose they can give this way, although a very small percentage of donors use this option (less than 1%).
Yes, these donors can take a tax deduction if they itemize on their return, but I submit this case as an example of altrusitic giving. The main reason people give is that care about others, not that it advances their own economic self-interest. For the CFC anonymous donor they are the only one that knows if they gave at all, and how much they gave.
Don’t forget, there’s a reason that economics is called the “dismal science.” One of my favorite quotes is this one by Bobby Kennedy (April 1968):
“Gross National Product counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage. It counts special locks for our doors and the jails for the people who break them. It counts the destruction of the redwood and the loss of our natural wonder in chaotic sprawl. . . . Yet the gross national product does not allow for the health of our children, the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country. It measures everything, in short, except that which makes life worthwhile. And it can tell us everything about America except why we are proud that we are Americans.”
Regards,
Bill Huddleston, CFC Expert
P.S. If you want to learn why the CFC is the most donor friendly means of contributing to non-profits, please go to http://www.cfcfundraising and request the CFC special report. Thanks.
BY Varden Hadfield
ON June 27, 2008 12:52 PM
You make an excellent point, and one that I think is well understood by anyone who has worked closely with major donors for very long. Among my colleagues and professionals associated with major gifts, this is not even a matter of much debate.
My experience working with major donors for the past 10 years matches well with your experience. Who says altruism has to result in a real neutral or even painful result to the donor in order to be pure? As Kristen Renwick Monroe discusses in her book, “The Heart of Altruism,” even people who risk their lives to save others often derive personal satisfaction from a lifestyle of concern for other people.
I also agree with the assertion that in general you can’t have a tax-deduction situation in which the donor ends up with more money than they started with—at least in income tax, current lifetime gift situations.
The estate tax may be a possible exception to this rule—although I still agree that in general most estate donors are still primarily motivated by a desire to help others. There are sometimes ways to structure planned gifts to avoid estate, income, and capital gains taxes, increase income for the donor while they’re alive, and also end up with more money for the children than the family would have if they had kept all the assets and paid estate and capital gains taxes. Occassionally people can become interested initially by these tax incentives, but then eventually realize great personal satisfaction as they realize they’re also blessing other people.
Sometimes observers also assume that near-immortality through a naming opportunity can be a significant motivator for a gift. This may be possible for some donors, but I’ve also worked with several high-porofile naming situations in which the gift and its’ positive impact on others was the donor’s primary interest, and the naming opportunity of the endowment or building was promoted by the charity. Many donors, especially high-profile ones, are extremely resistant to their name being listed or others being aware of their giving—for fear they’ll be hassled with countless additional requests for funds.
It is common practice for organizations to produce lists of donors who give at smaller amounts—on patio stones, bricks, plaques, and brochures. But, I wonder if there is any research that actually demonstrates this induces people to give more than they otherwise would have. I still suspect you’d find these donors’ connection to the cause is far more important than having their name listed somewhere.
Thanks for keeping us grounded in reality!
BY Sean Stannard-Stockton
ON June 30, 2008 08:30 AM
Thanks for the comment Varden. It is interesting that most of the people who work with high net worth donors and the donors themselves agree with my comments (and yours). Yet most people in general do not. I’ve also noted that even high net worth donors will often make the “it is just for the tax deduction” assumption when they are discussing people with even more wealth than them. I think this is why so many people doubt Buffett’s motivations (not many people have more money then him!
BY Bettina Curtis
ON March 25, 2011 01:57 AM
People have their own reasons why they donate or give to charity whether monthly, weekly or yearly. But most of them really wanted to help without expecting anything in return. Some people give because they want to expose themselves might as well their business as well because they believe that it’s a win-win situation to do that. Their aim is still to help but they want to become known as well.
BY Joanne Fagan, Eva's Village Communications and Gra
ON September 27, 2011 04:44 PM
I think a great book to help shield light on why people give to charity is Seider’s book “Shelter: Where Harvard Meets the Homeless” that looks at the impact of volunteering on Harvard students & what volunteering and community service can provide in terms of personality growth. In one sense, giving money is much easier than giving time, but I think the benefits are the same. It’s just that when you give your time, you’re getting more of the same benefits (e.g., a feeling that you’ve really helped someone) plus extra benefits, such as becoming closer with others who are helping.
At Eva’s Village, we run one of the most active volunteer organizations in the state: we have an active individual volunteer program and a corporate volunteer program, called “Bond, Boost, & Build: Team-building opportunities for corporate volunteers.”
We offer these volunteer programs not only because it greatly assists us in our many charitable activities but also because corporate volunteer studies (see Cathleen Wild’s report, “Corporate volunteer programs: Benefits to business,” 1993), and our own experience, shows a wide range of benefits of volunteering such as an increased sense of well being, an increase in self-confidence, a decrease in personal depression, and stronger group bonding (one of the main benefits of our “Bond, Boost, & Build” volunteer program).
In the end, we give our time and our money because, in giving, we find that we received as much, if not more, than what we gave.
BY Clint
ON April 23, 2013 10:53 PM
People will give on charity because this is the fastest way to help people, helping people with any return is amazing.
BY Find a Useful Charity Gift
ON March 17, 2015 04:08 AM
This is a really interesting topic. I think people usually feel good about doing something positive for another person. Giving to charity can be so rewarding because you know that you’re helping others in need. Thanks for a wonderful post!
BY tori smith
ON February 5, 2018 12:26 PM
Giving to charity is different for everyone. Some like knowing that donating is helping others and some also appreciate the tax deduction. I myself have given to charity because I at one point had an over abundance of collectibles that I inherited. I did end up keeping some but didn’t have the room to store everything. Rather than dealing with buyers trying to get them for a small amount I finally came to the conclusion donating might be the best answer. And yes I did receive a tax deduction for my items but was also glad to know my donation would benefit someone else. The charity I donated to is https://www.collectibleswithcauses.org. I chose them because they are an IRS 501(c)3 certified non profit organization. Their website has all the information you need plus their EIN number if you want to make sure they are legit. I had a good experience with donating so I wanted to share. If looking into donating as an option check out https://www.givingcenter.org
BY Desiree
ON May 2, 2018 12:19 PM
Why do people give to charity? Many people have their own reasons for donating to charity some of the positive reasons are they want to give many to their lives, be a positive role models for others, make their lives feel richer, help others who need the help, and people able to meet others in the community.Charities are very important in communities because communities help each other. If we did not have charities we could not change the lives of others, and especially in times of need. Charities do not just improve the lives of people but also on a nation wide level. It is our responsibility as a community to help others and by donating to charity this makes it possible for us to help others who need the help. One of the best places to donate to charity is Online car donation. Online car donation is a non profit organization that has worked with many donors all over the world. Our charity works seven days a week and will pick up your vehicle donation when it`s covenant for you. We work nationwide and take all different kinds of vehicles. Donate car to charity and receive a maximum tax deduction for your donation. Car donations help many donors financially and also gives them a chance to help others as well. Car donations have helped families and individuals all over the world. When donors donate they are saving many lives with their car donation you will be helping any cause of your choice. Donate today and give to people who need the help.
BY Zoe Campos
ON October 16, 2020 04:39 AM
It’s great that you elaborated on the main reason why people donate to charity and how their internal satisfaction is the huge reason behind it all. I saw a video last night of a charity auctioneer and wondered where all the money goes. Maybe I’d understand it better if I were to do my own research about how this auction works.
BY Sam Gibson
ON April 27, 2021 02:43 PM
It was interesting how you mentioned that some people will tend to donate to charity towards the end of the year when they’re interested in a tax break. My father-in-law just mentioned to me last weekend that he’s hoping to find a good charity to donate some of his money to. He’s hoping to find a place where that money can help with education for children.
BY Luke Smith
ON January 16, 2022 10:39 PM
I loved how you said that it’s in our human nature to give help to others who are in need. Last night, I watched a documentary about poverty, and it hit me so hard that I’m actually considering on donating to some of the good charities out there. That being said, I’ll look for ones that support child education, because I believe that they should be prioritized.