The bulk of donations made during the Penn’s Way campaign are employee payroll deductions, which begin and end in the same calendar year. Because payroll pledges are collected through the end of the calendar year, we are not able to disburse them in that same year, therefore, the final distribution occurs in February of the following year.
While the previous campaign is fully disbursed and closed out at the end of February, and one-time donations from the most recent campaign have been received, Penn still needs to collect three months (January, February & March) of payroll pledges before we can disburse them to charities. We receive those funds in April, reconcile them against the final pledge report, and the first quarter distribution is sent in May. The remainder of the payroll donations and their matching funds are disbursed in the following quarters.
This is a standard best practice for workplace campaigns that offer payroll deduction as a method of charitable giving. Many charities report that the predictable influx of donations received year-round improves the accuracy of revenue projections and allows for more effective planning around the use of these unrestricted funds.