What the New Tax Law Means for Your Donors

Some sobering insights from AFP about the tax law changes—with an interesting twist for mid-level fundraising: 

1) The threshold to be able to take advantage of the charitable deduction has increased. Research from the Joint Committee on Taxation estimates that nearly 30 million taxpayers will no longer itemize their taxes and will instead use the standard deduction. That change could eliminate nearly $100 billion in itemized contributions.

2) Research by the Tax Policy Center, and from The Lilly Family School of Philanthropy and Independent Sector, estimates the drop in giving will be in the $12 – 20 billion range annually. (Ouch!)

3) Mid-level donors may be facing the most complicated decisions. Donors who give from several hundred dollars, to donors in the $1,000 – $5,000 range, may very well have been itemizers in 2017. But in 2018, all of the tax law changes may lead them to take the doubled standard deduction. On the other hand, they may end up with more discretionary income to donate in 2018. What to do? Ask these mid-level donors why they give, show them lots of love, and demonstrate tangible ways their support is making a difference.

Read AFP’s full report here: How to Approach Fundraising in 2018

– Posted by Kathy Swayze, CFRE, @impactkathy

 

Photo credit: © MoneyBlogNewz Used under a Creative Commons (CC-BY-2.0) license.

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