(a) Contributions and pledges that have been designated to specific participant charitable organizations and received by a federated community campaign must first be distributed to those organizations, minus only the deduction for the SEFA campaign's administrative costs.

1. (1) No later than May 1st of every year, each local SEFA committee shall review the financial report of the campaign for the previous year and proposed annual budget. Based upon such review, the local SEFA committee shall determine a fixed administration cost percentage, equally applicable to all participants, for the calculation of their respective contributions and pledges to the administrative costs for the next campaign.
2. (2) The administration cost percentage so determined shall not exceed 15 percent of the sum of SEFA contributions received in the prior calendar year. A higher percentage may be permitted pursuant to paragraph (3) of this subdivision. The statewide SEFA council shall have the right to review the administrative expenses of each federated community campaign, and to lower the percentage determined by the local SEFA committee if such percentage is deemed to be excessive. Such determination shall be made no later than July 15th of each year.
3. (3) If a local SEFA committee believes that a federated community campaign should receive more than 15 percent of the contributions received in the next SEFA campaign, such committee shall submit an application to the statewide SEFA council no later than May 15th, setting forth the percentage recommended and the reasons for such determination, as well as such data and documentation as the statewide SEFA council may require. The statewide SEFA council may permit a higher percentage amount only if it finds compelling reasons to believe that the reasonable and necessary costs of the next succeeding campaign must exceed 15 percent. Such determination, with the percentage approved, should be made by July 15th of each year and is subject to the approval of the commissioner.
4. (4) No later than May 15th, each federated community campaign will report its campaign's administration cost percentage and the planned time, or times, of distribution set out in its approved budget to the federated community campaign retained by the statewide SEFA council.
5. (5) The federated community campaign or other charitable organization retained by the SEFA council will provide notice of the administration cost percentage and planned distribution dates of each campaign, to each of the participants on the list provided under section 335.4(a)(5) of this Part. The method of notice will be determined by the statewide SEFA council. The method of notice may be limited to an electronic means such as web posting or e-mail, or limited to U.S. mail, or any other method reasonably determined to provide adequate notice. If the method of notice is limited to electronic means, the requirements of the State Technology Law will apply to such notice.
6. (6) The administrative fees of the campaign shall be paid by the participants at the time of distribution of funds by the FCCM. The amount shall be calculated by multiplying the sum of the designated funds, by the percentage for administrative costs, determined pursuant to this section.

(b) Administrative costs.