Making a Designation

A designated gift goes to a specific agency versus to our Agenda for Lasting Change.  Unfortunately, we can't guarantee how designated funds will be used or ensure measurable results, but we process these gifts as a service to our donors.

• Designations can be made to legally recognized nonprofits. Find out if your organization is a 501(c)(3) at www.guidestar.org.
• Designations need to be specified and submitted at the time of the pledge.
• Complete information, including the agency name, street address, city and state, is required to ensure that a designated gift goes to the right agency—many have similar names. Agency codes are no longer required.
• Designations to our partner agencies are sent in addition to any existing program funding.
• Donor names and gift details are forwarded to designated agencies. Names will not be forwarded upon request, or if an employer doesn't provide detailed gift information.

Agency Payments

Upon receipt, designated gifts made with cash, check, credit card or stock are paid to agencies in the next scheduled designation payout beginning December 2008.

Donor pledges are paid through payroll deduction the following year. One-fourth of each designated payroll deduction gift is paid during the year in March, June, September and December.

Administration Costs

The charge on all gifts to cover fund-raising, collecting, processing and distributing costs is about 11 percent. The cost varies slightly annually, and is very low compared to other charities. Our cost is far below the 30 percent maximum suggested by the Charities Review Council.

Uncollected Pledges

We can only distribute dollars that are actually collected.

If you make a payroll pledge and quit your job, for example, we don't receive your entire annual pledge because you're no longer being paid by that employer. Other circumstances might include changes in family circumstances or companies going out of business.

Unfortunately, we don't know which specific payroll pledges are unfulfilled because we are given a lump sum versus individual checks.

Based on experience, we assume that 3.2 percent of all payroll deduction pledges will not be collected. For example, on average, if $100 is pledged, $11 goes to fundraising and administrative costs, $85.80 goes to nonprofit programs and $3.20 will not be received.  If you give by cash, check, credit/debit card or stock, the 3.2 percent uncollectible allowance does not apply.

Our partner agencies understand this situation and take uncollected pledges into account when planning their budgets.