The Office of Personnel Management (OPM) Overhaul: How Changes to the Federal Workforce Could Affect Nonprofits and the Combined Federal Campaign

The Combined Federal Campaign (CFC) is one of the world’s largest workplace giving programs, managed by the Office of Personnel Management (OPM). As a founding partner of the CFC since its establishment in 1961, CHC: Creating Healthier Communities has helped raise more than $8.6 billion for local, national, and international charities. The success of the CFC is critical to CHC’s mission and that of its participating nonprofits. CHC works closely with OPM, nonprofits, and federations to uphold the program’s integrity, hosting an annual town hall with OPM and participating in discussions about the CFC’s future.

Potential Workforce Cuts and the Impact on CFC

Recent announcements suggest potential massive cuts to the federal workforce and OPM-managed programs, which may impact the CFC. However, there is no indication that the CFC itself is being eliminated. Any significant changes to either the CFC or the federal workforce would likely face legal challenges.

The federal government is the largest employer in the U.S., with over 3 million employees, plus 1.3 million active-duty military personnel. Government contractors and retirees are also eligible to give through the CFC. Historically, the size of the federal workforce fluctuates across administrations, with reductions in some sectors often offset by increases in others. The declining share of federal workers in the overall U.S. labor force is largely due to the shrinking postal service. Meanwhile, retirees—who recently became eligible to give—are now the fastest-growing segment of CFC donors. This history suggests that major shifts in the total number of donors eligible to give in the CFC are unlikely. Further, the Department of Defense remains the single largest donor in the CFC. In 2023, the DoD pledged over $13.8 million—more than 21% of the overall total CFC pledges for the season.

2024 CFC Trends and Preliminary Data

CHC is sharing preliminary data from the 2024 CFC season to help nonprofits plan for the upcoming year.  In 2024, the CFC has seen only a 3% overall decline to date over this time last year, a smaller drop than in previous years when some campaigns faced double-digit losses. Notably, many CHC partners have maintained steady performance compared to 2023, faring better than non-CHC partners amid broader declines for several consecutive campaign years.

While the 2024 season was affected by federal workforce-related announcements, an election year, and government shutdown concerns, CHC has not observed a major drop in CFC giving. Pending final figures, current data suggests that despite external disruptions, the CFC remains on a stable trajectory.

A Legacy of Bipartisan Support

The Combined Federal Campaign has a long history of bipartisan backing. In 1961, President John F. Kennedy signed an executive order authorizing the U.S. Civil Service Commission to oversee nonprofit solicitations from federal employees. In 1982, President Ronald Reagan replaced it with an executive order establishing the modern-day CFC.

What’s Next for Nonprofits?

CHC is closely monitoring the 2024 CFC results and will continue to provide insights as developments unfold. CHC nonprofit partners will soon receive weekly, single-topic emails covering pressing nonprofit news, including CFC updates. To stay informed, nonprofits who are not partnered with CHC can also connect with us for email updates.

Additionally, it’s never too early to steward CFC donors. Regular updates, acknowledgments on social media, and targeted email campaigns can help maintain engagement with CFC-eligible donors. If you are a CHC partner, connect with us or log in to the partner portal to receive your CFC toolkit.