What Are Appropriate Administrative Management Charges?
• In many cases a campaign management service will charge a fee equal to a simple percentage of the overall campaign dollars raised. The logic here is attractive: no out of pocket expenses on the part of the employer. The campaign is essentially self-supporting by the donors themselves. On closer inspection this system burdens the most generous donors and is not related to the actual costs of conducting the campaign. An example of the above using 14% as the fee charged: If an employee makes a $5 per pay period contribution, or $130 total (26 pay periods), they are charged $18.20 for their share of campaign management. If, on the other hand, an employee makes a $50 per pay period contribution, or $1,300 total, they are charged $182.00 for their share of campaign management. And yet, practically speaking, the campaign materials and data processing for these two contributors are virtually identical. • More and more employers, if they pursue campaign mangers at all, are asking for clear ca