According to the latest report from the Association of Fundraising Professionals, charitable giving has taken a hit in 2018: Among 13,000 organizations analyzed, they’ve found a 2 percent drop in money donated and a 6.6 percent drop in donors over last year.
The proximate cause for this trend appears to be provisions in the Tax Cuts and Jobs Act, passed in 2017, that significantly curtailed tax incentives for donors. At the time it was being debated, expert observers – including the American Enterprise Institute, Indiana University, and Independent Sector – predicted that the new law would cost nonprofits $11-20 billion in expected donations. Unfortunately, that forecast now appears accurate.
This development offers an opportunity visit with donors and explain the effect on them. It also offers an opportunity to be of service, revisit the mission and discover other ways to benefit both giver and receiver.