2007 Maryland Charity Campaign

Making a World of Difference, Right Here in Maryland

Frequently Asked Questions

• How do employee transfers within the state department effect pledge deductions?
• How much money did the Maryland Charity Campaign raise last year?
• Who administers the Maryland Charity Campaign?
• What is a Federation?
• Why does my credit card gift to the Maryland Charity Campaign show up on my bill as United Way of Central Maryland (UWCM)?
• How does a charity become part of the Maryland Charity Campaign?
• Why should I contribute to the Maryland Charity Campaign?
• Does the Maryland Charity Campaign set a quota on contributions to larger charities or redirect contributions to smaller charities?
• What are the administrative costs of the Maryland Charity Campaign?

 

How do employee transfers within the state department effect pledge deductions?

If an employee changes departments during the year, central payroll will not make any further deductions unless a request is made by the donor. If you transfer please call Maryland Charity Campaign at (410) 895-1493 to make this request.

How much money did the Maryland Charity Campaign raise last year?

In 2006, the Maryland Charity Campaign raised $3,824,000.

Who administers the Maryland Charity Campaign?

The Governor and Lt. Governor are the Co-Chairs of the campaign. The Secretary of State administers the campaign for the Governor, and the Charitable Organizations Division of the Office of the Secretary of State is responsible for carrying out the duties specified in the Executive Order.

The United Way of Central Maryland is under contract to the Secretary of State's Office to plan and implement the campaign in a manner consistent with the Executive Order. Some of the services provided by UWCM are to train Loaned Executives and Coordinators, to provide necessary printed materials including the Agency Directory and pledge cards, plan the "Kick-Offs" and "Thank You" events and distribute designated funds to the certified agencies.

The Governor selects an Assistant Chairperson and an Assistant Chairperson Designee. In 2007, the Assistant Chairperson is Thomas E. Perez, Secretary of the Maryland State Department of Labor, Licensing and Regulation.

What is a Federation?

A federation is a group of voluntary charitable human, health and welfare agencies established to supply common fundraising, administrative and management services to its members. If you wish to designate all, or a portion of your contribution to a federation, please record that federation's corresponding code number.

Why does my credit card gift to the Maryland Charity Campaign show up on my bill as United Way of Central Maryland (UWCM)?

United Way of Central Maryland manages the Maryland Charity Campaign under a contract with the Office of the Secretary of State. United Way of Central Maryland is the primary processor with a credit card company so that we can offer the option of giving by credit card to several campaigns we manage. Your gift is credited to a separate account for the Maryland Charity Campaign but only the primary processor can be listed on credit card bills. If your gift is over $250, you will also receive a letter by January 31 confirming the amount, as required by law.

How does a charity become part of the Maryland Charity Campaign?

The Charitable Organizations Division of the Secretary of State's Office administers and reviews all the Maryland Charity Campaign applications. All applications must meet the requirements of the Executive Order to be approved for participation in the Maryland Charity Campaign.

In order to be eligible for designation as a "participating agency" in the 2008 campaign, a charitable organization must have:

1. Certified full compliance with federal, state, and local laws.
2. Been operating under valid Articles of Incorporation (or other organizing instruments), and By-laws (or other governing instruments).
3. Had a current, valid 501 c(3) designation from Internal Revenue Service, and be eligible to receive tax-deductible contributions under section 170 of the IRS code.
4. Submitted a copy of IRS Form 990 for the most recently completed fiscal year; or if not required to file an IRS Form 990, a financial report form COF-85, provided by the Secretary of State, and signed and certified by its Chief Executive Officer.
5. Stated and certified the percentage of total revenue from the proceeding fiscal year that was spent on management and fundraising activities.
6. Submitted a statement demonstrating that its expenses for these purposes were reasonable under all the circumstances in its case, if the percentage of revenue spent by a charitable organization on management and fundraising under item 5 exceeded 25%.
7. Submitted a copy of the current operating budget signed and certified by the Chief Executive Officer.
8. Demonstrated that it has provided significant services to Maryland residents or those in need of such services in other countries for two years prior to January 1, 2008.
9. Provided evidence of financial support from Maryland residents within the past five years if the organization is providing services in other countries.
10. Certified that all funds from the campaign will be used solely for the provision of services to residents of Maryland, or people in other countries, including reasonable administrative costs of those programs.
11. Had a majority of its governing body serve without compensation.
12. Provided its annual financial report to the public upon request.
13. Submitted an application and proper attachments to the Secretary of State's Office by February 8, 2008.

MCC applications were mailed to charitable organizations in November 2007. The deadline to submit applications for the 2008 MCC is February 8, 2008. Failure to comply with the filing deadline will result in denial to participate in the MCC.

Charitable Organizations that submit an incomplete application are sent an initial denial letter and given ten days from the date of the letter to submit the required materials. Failure to do so results in a final denial from participation in the Campaign.

Applicants approved for participation receive a letter certifying their eligibility. Checks from the 2007 campaign will be sent to the participating charities during the second, third and fourth quarters of 2008.

Why should I contribute to the Maryland Charity Campaign?

1. The Maryland Charity Campaign provides you with the opportunity to reach out and touch the lives of those in need; to sustain local, state, national and international health, educational, environmental and human service organizations; and to make a meaningful contribution to your community.
2. The Maryland Charity Campaign asks once: State employees and retirees may contribute to charitable organizations in an orderly and uniform process through one annual campaign.
3. The Maryland Charity Campaign is targeted: You choose the amount and the charity or charities to receive your gift.
4. The Maryland Charity Campaign is accountable: All charities participating in the Maryland Charity Campaign have been pre-screened to insure that they are fiscally sound and that they perform the services stated.
5. The Maryland Charity Campaign is tax deductible: You get a record of your payroll deduction every payday.
6. The Maryland Charity Campaign is easy: You choose between regular payroll deduction and/or a one-time gift by cash, check or credit card.
7. The Maryland Charity Campaign is effective: 88-90% of your designated contribution goes to the charity or charities stated. Our administrative fee is small compared to other non-profits. We are working hard to reduce it further.
8. Your contribution is "matched": A percent of each undesignated (or general pool) contribution will also go to your charity of choice, based upon the designated contributions the charity receives. These could be considered matching funds and increases the power of your contribution.
9. The Maryland Charity Campaign makes a difference: The community-at-large can identify the commitment of State employees, knowing that they are improving the quality of life for all Marylanders.

Does the Maryland Charity Campaign set a quota on contributions to larger charities or redirect contributions to smaller charities?

Recently, several people have asked whether the Maryland Charity Campaign sets a quota on contributions to larger charities or redirects contributions to smaller charities. The Office of the Secretary of State oversees the Maryland Charity Campaign and sets strict regulations. There are no pre-set quotas for contributions to larger charities. All contributions designated to a particular charity go to that charity.

The only contributions put in a Maryland Charity Campaign general fund are those where a contributor fails to name a charity. For instance, some employees do not identify a charity code on their pledge forms. When this happens, the total amount of undesignated contributions is distributed to all charities in the booklet based on the percentage of designated contributions each charity receives during the campaign. Another way of putting this is, if the Maryland Charity Campaign raised 3 million dollars from designated funds and the American Red Cross received 10% of that designated 3 million, then the American Red Cross would receive 10% of the undesignated dollars.

All collected donations less administrative costs (under 12% in 2006) are fully paid to charities. As explained above, the charities also receive a portion of the undesignated fund.

After the campaign ends in November, the Maryland Charity Campaign sends a notification letter by end of March to each agency informing them how much they can expect to receive that year. The agency also receives a donor listing of everyone who requested to have their names sent to the charities they supported. Maryland Charity Campaign payments are sent monthly to the charities.

What are the administrative costs of the Maryland Charity Campaign?

The Office of the Secretary of State oversees the campaign's administrative costs, which were 12% for the 2006 campaign. These costs are for printing and designing campaign materials, training and supervising volunteers, and processing and auditing contributions. Because Maryland Charity Campaign's overhead is so low compared to other fundraising campaigns, more of every dollar you pledge goes a long way toward helping others.