9 - Building a Campaign Budget presentation 1-18-13

Combined Federal Campaign 2013 National Training
Building A Campaign Budget
February 26 - 28, 2013
Atlanta, GA
Session Objectives
• Maximize donor funds going to charities by
keeping expenses as low as possible
• Understand importance of a sound Financial
Management Plan
• Establish detailed budget categories in the
contract solicitation
• Negotiate budget amounts annually
• Conduct monthly expense reviews
• Verify final expense recovery reimbursement
Presented by
• Sally Good-Burton, Office of Information Services
Group Director, Centers for Medicare and
Medicaid Services, U.S. Dept Health and Human
Services, and LFCC Chair, Chesapeake Bay Area
[email protected]
• William Henrikson, Chief Financial Officer, Volpe
National Transportation Systems Center, U.S.
Dept of Transportation and LFCC Chair, Eastern
Massachusetts CFC
[email protected]
Chesapeake Bay Area CFC
• Third largest CFC in 2011; over
4,000 charities participated
• Functions under direction of the
Baltimore Federal Executive Board
• Campaign area includes Baltimore
city and 16 counties in Maryland
and Virginia
• Includes 135 Federal agencies
with 91,391 employees
• 2011 CFC raised a record $6.8M
(19% participation rate; $390
average pledge)
• Won National Performance Award
for $1M+ campaigns in 2011 for
11.3% increase over 2010
• Utilized 7 Loaned Executives from
4 Federal agencies
Eastern Massachusetts CFC
• Created in 2004 – 3 CFCs merged
• Area includes city of Boston
(Suffolk County) and surrounding
• ~150 federal agencies with
approximately 30,000 employees
• 2011 CFC raised $1.99 (24%
participation rate, $278.35
average pledge
• 10 Loaned Executives work directly
with PCFO
• Participant in the New England
Region Local Eligibility Application
Process. Shared local federation
application review process with
other New England PCFOs.
Importance of detailed financial
management plan and budget
The LFCC is responsible for overseeing a campaign in a given area in
accordance with OPM direction; fiduciary responsibilities are paramount!
Must ensure that all donor contributions are safeguarded and used as
intended by the donor
Financial management plan presents sound fiscal approach and describes
internal controls
Internal controls provide reasonable assurance that the following objectives are being achieved:
• effectiveness and efficiency of operations,
• reliability of financial reporting, and
• compliance with applicable laws and regulations.
Currently, expenses are recovered from donor contributions; campaigns
must strive to minimize costs and maximize funds going directly to
designated charities
Budget must be based on projected expenses – not based on a percentage
of funds raised in the campaign
Approve only necessary, legitimate campaign expenses
Financial Management Plan
• Describe internal controls designed to provide reasonable
assurances that fiduciary responsibilities of § 5 CFR 950.105 will
be achieved
U.S. Government Accountability Office (GAO)’s Five Standards
for Internal Control
• Control Environment
• Risk Assessment
• Control Activities
• Information and Communications
• Monitoring
• Specifically address the system for reconciliation of original pledge
amounts with final distribution of funds
• Identify checks and balances in place to ensure accountability and
integrity of financial system
Campaign Budget Justification
• Projected expenses for upcoming campaign(s)
with narrative justification explaining rationale
and/or formulas used in calculating major cost
• Expenses must be presented at a sufficient level
of detail to enable understanding of all necessary
costs to run a campaign
• LFCC approval required annually for campaign
budget; collaborative approach may provide
greatest efficiencies
Sample Campaign Budget Categories
• Total Payroll-Related Expenses
– Salaries – by individual position, full-time and part-time and all
temporary positions….direct and indirect
– Employee benefits – direct and indirect
– Payroll Taxes – direct and indirect
• Other Campaign Staff Expenses
– Local transportation and parking
– Staff development
• Volunteer Development
– Local transportation and parking
– Professional development
Sample Campaign Budget Categories
• Campaign Processing Expenses
Third party processor expenses (if used)
Pledge processing system
Electronic pledging system
Telecommunications (voice and data)
Postage and Shipping
Office supplies
• Design and development
• Maintenance and Update
Sample Campaign Budget Categories
• Total Marketing Expenses
– Printing – list individual items and estimates for each item
• Paper pledge forms
• Paper charity list or Giving Guide
• Brochures, posters, postcards, banners
• Volunteer training and support materials
– Storage and shipping materials to agencies
– Video / Media aids
– Donor recognition and incentive gifts
– Campaign and special events – list individually (campaign or agency
kick-off; mid-campaign rally; recognition events)
• Reminder: Campaign cannot pay for food or entertainment at
these events
Sample Campaign Budget Categories
• Other Expenses
– Occupancy (rent, utilities; office amenities)
– Depreciation (office and computer equipment, furniture,
– Annual Audit - An assessment by an independent certified
public accountant using generally accepted auditing standards
(GAAS) and following the Agreed-Upon Procedures (AUP)
provided by OPM
Projected Revenue
Conservatively estimate amount expected to be
• Based on Federal employee population (current and
• Performing at campaign average participation rate and
average gift – adjusted for future expectation
50,000 employees – 25% participation &
$300 average gift = $3,750,000
Shrinkage: The difference between the amount pledged
and the amount actually collected. Used in adjusting
distribution payment; not part of budget
Campaign Overhead Rate
Total Estimated Expenses per year
Divided by
Campaign Projection Revenue per year
Percent of CFC Expenses to Campaign
Monthly Budget and Expense Reports
• After LFCC approval of campaign budget, the PCFO submits
detailed monthly expense reports to LFCC showing all expense
transactions, accompanied by copy of invoices/receipts, by
15th of following month.
• An LFCC member reviews materials for accuracy and
completeness; meets with PCFO CFO staff to discuss any
questions or missing receipts
• Summary financial reports presented regularly to the full LFCC
• Summary and detailed financial materials maintained in LFCC
office for 3 years after close of campaign
• Budget and expense information must be made available to the
public upon request
Example of Summary Report
Example of Detailed Report
Transaction Journal 2012 Campaign
For the Period March 1, 2012 - November 30, 2012
account number and description
Description of item
Journal Entry
Accounts Payable
Debit Amount Credit Amount
Project ID
campaign year
account number and description
account number and description
PCFO Expense Recovery
§ 950.106 “The PCFO shall recover from the gross receipts of the
campaign its expenses, approved by the LFCC, reflecting the actual
costs of administering the local campaign.”
Final expense amount equals cumulative LFCCapproved expenses for a campaign
Monitoring/reviewing /approving expenses and
receipts on a monthly basis supports a timely and
smooth LFCC approval process!
• The amount to be recovered cannot exceed 110 percent of
estimated budget (unless approved by OPM Director)
• Expenses shared proportionately by all recipient organizations
reflecting their share of gross receipts
• LFCC responsible for ensuring sound financial
management of campaigns
• Budgets need to be detailed to allow for understanding of
costs and cost drivers
• Budgets must be negotiated annually
• LFCCs should approve only necessary, legitimate
campaign expenses
• Conduct monthly reviews of actuals versus budget
• Verify final expense recovery reimbursement
Any Questions?
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