Vendor getting most state-worker charity cash

The company hired to oversee Florida’s annual state-employee charity drive walked away with more than half the money collected last year.

And Solix, Inc., which began running the Florida State Employees’ Charitable Campaign in 2013, could end up with an even bigger share of the take this year.

Each fall, state employees are given the opportunity to contribute to charitable organizations, including the United Way, through payroll deductions or one-time gifts.

But Solix took 47 percent of the contributions in 2013 and 51 percent last year, according to documents from the Florida Department of Management Services. Of the $990,815 raised in 2013, Solix got $470,470. And of the $881,764 raised last year, Solix got $453,599.

This year, Solix could receive nearly two-thirds of the money raised through the campaign, which is on tap to have its worst showing in at least five years.

Alva Striplin, a Leon County School Board member and interim CEO for Big Brothers Big Sisters of the Big Bend, said her nonprofit received only about half of the pledges from state workers over the past couple of years.

“It’s a tragedy in so many ways, especially for the state workers who are giving out of their paychecks to help people in the community,” she said. “I think more than anything, state workers are going to be shocked when they actually hear how much the agencies are receiving.”

In 2013, state employees pledged $4,947 to the area Big Brothers Big Sisters, but the nonprofit received only $2,872. Last year, pledges totaled $5,408, but the agency got only $2,662.

The charitable campaign, which is strictly voluntary for state workers, used to raise more than $4 million a year, when it was run by the United Way. But donations have dropped precipitously, going from $2.6 million in 2011 to $881,784 last year.

This year’s campaign, which ends Friday, raised a little more than $600,000 as of Wednesday afternoon. And Solix is expected to receive $389,297 of the proceeds, or nearly two-thirds of what was donated.

DMS in documents said the general economic decline was one factor in the drop-off of donations. It also noted that campaign policies had been revised, including the elimination of some fundraising tactics that had generated complaints of coercion from workers in the past. Some of the tactics, DMS said, included the setting of financial goals for each business unit, requiring all employees to account for their pledge forms and encouraging certain workers to donate at a “leadership” giving level.

Payments above 'acceptable levels'

Ted Granger, president of the United Way of Florida, said the organization met with key state officials to discuss concerns after the campaign’s fiscal agent was outsourced to Solix, a for-profit company based in New Jersey.

Later, the organization met with Gov. Rick Scott’s then chief of staff, Adam Hollingsworth, to “express deep concern” when “severe restrictions” were placed on campaigns being allowed in state offices.

“Donations were also significantly diminishing — but the for-profit vendor was still guaranteed to recover its costs, and the percentage of total campaign funds diverted to that purpose drastically exceeded acceptable levels,” Granger said. “Upon learning this, we immediately met with Mr. Hollingsworth and were assured that corrective action would be taken. Clearly, this has not been the case.”

Solix declined to comment, referring questions to DMS, which negotiated the three-year contract with the company. The current contract with Solix expires at the end of the year, though DMS recently entered into a new three-year contract with the company.

The United Way actually was paid more money to run the campaign in 2011 than Solix received in subsequent years, though it was a lower percentage of the take. In 2011, the United Way’s campaign raised $2.6 million, and it was paid $796,616, or roughly 29 percent.

Under the initial contract, Solix was to be paid a percentage of total donations if they exceeded $3 million in the first year and $2.7 million in the second and third years. However, donations came nowhere near those amounts, and the company instead was paid for its documented costs.

DMS issued a statement saying the agency has reduced the program’s administrative costs by more than $400,000, a reference to what United Way was paid for the 2011 campaign and what Solix is expected to be paid for this year’s drive.

“The current vendor has reduced administrative costs by 51 percent, and state employees are not mandated to donate to a certain charity,” said DMS spokeswoman Natalee Singleton. “Any future changes or improvements made to this program must be enacted through legislation.”

The FSECC was created by a Cabinet resolution in 1980 and was included in statutes in 1993. The United Way ran the campaign since its inception until Solix took over the contract Jan. 1, 2013, Granger said.

Ron Sachs, CEO of Sachs Media Group and former chairman of the United Way of the Big Bend board, said he’s hopeful Gov. Rick Scott and others will take action to fix the problem.

“State employees have a proud history of giving generously to help fellow citizens in need,” he said. “This campaign is the principle way they can do that by voluntary choice. The campaign exists for good reason, and we have a fervent hope that once the top leaders in the Governor’s Office learn of this, they will take action.”

State workers and their pledges

State employees who want to cancel their payroll deductions can do so by contacting Solix through Dec. 1 at 855-464-5320. From Dec. 1 through the end of the year, employees can cancel pledges by contacting their Human Resources office. Payroll deductions begin in 2016, and employees may cancel their pledges through the online People First system.

Solix runs the charitable campaign for state agencies only, not entities like Florida State University.

Solix, Inc. facts

Solix, Inc., based in Parsippany, New Jersey, says on its website it is a leading provider of program-administration, eligibility-determination and customer-care services in the public and private sectors. The company, founded in 2001, offers services including grant management, consulting, outsourced customer care and communications and disaster preparedness and recovery.

Full statement of Ted Granger, president of the United Way of Florida:

"The Florida State Employees' Charitable Campaign historically has been the most effective, proven way for state workers to contribute their hard earned dollars to support important charitable work conducted by United Way and many other non-profits that provide vital services to people in need throughout our state.

In the past, the campaign enjoyed enthusiastic support by the state’s top leadership. Educational and fun workplace events allowed state employees to learn about the service agencies to which they could earmark their charitable giving — and then to make their own personal decision about participating through payroll deduction. In those past times, the honorary chair of the FSECC effort generally alternated among the governor and members of Florida’s elected Cabinet — attorney general, CFO, commissioner of agriculture — reflecting the high priority the State placed on enabling state workers to engage in personal philanthropy, if they choose, and making a huge difference statewide.

After administering the FSECC for many years, and boosting donations while holding costs down, United Way was removed as the fiscal agent for the campaign — and was replaced by a private, for-profit, out-of-state vendor. When we learned of this decision, United Way met with key appointed state officials to address our serious concerns about the change. We met with them again — at the level of former Chief of Staff Adam Hollingsworth — to express deep concern, when severe restrictions were placed on any real campaign being allowed in state workplaces. Donations were also significantly diminishing — but the for-profit vendor was still guaranteed to recover its costs, and the percentage of total campaign funds diverted to that purpose drastically exceeded acceptable levels. Upon learning this, we immediately met with Mr. Hollingsworth and were assured that corrective action would be taken. Clearly, that has not been the case.

Gov. Scott and First Lady Ann Scott have been strong supporters of the United Way — here and in other communities. Coupled with that fact are overwhelming needs in our state that often fall to the noble work of Florida’s non-profit service agencies to fulfill — to complement the limited budget and work of government. So, this questionable decision by high-ranking staff and bureaucrats in state government — and the very troubling, resulting outcome — remain puzzling to us, and are an affront to state employees. We are hopeful that appropriate reforms and changes will be made to fix this problem as we were assured they would be many months ago.”