Philanthropy News NOW

2017 overall revenue down, but quantity of smaller gifts up.

  • Overall revenue was down from January to June 2017 by six percent.
  • Overall donor gifts were down by five percent.
  • Total donations under $1,000 had significant increases.
  • Donations below $250 saw an increase of almost nine percent.
  • Donations between $250 - $999 saw an increase of more than fourteen percent.
  • Midlevel gifts have more than doubled from 2013 to 2017
  • Overall donor retention rate has declined every year since 2013. New donor retention is only 17.6%.

* Source: AFP's Fundraising Effectiveness Project (Based on transactions from 7,500+ organizations

Tax Reform and Philanthropy 2018 and Beyond

The charitable deduction has, for most donors, been virtually eliminated beginning in 2018. However, the deduction isn't always a top motivator for major donors, according to a US Trust Study. Charitable giving in the US exceeded $400 billion last year, and many strategies can keep donations from substantially diminishing despite the new tax law. 

  • Be prepared for donors to ask how to start a donor-advised fund - always tell them to speak to their advisors.
  • Donors over age 70.5 who are taking an RMD can give from their IRA. 
  • Maintain close personal relationships with your donors. This might seem obvious, but we all know that people give to other people.
  • Your organization's budget might be more volatile as donors could possibly double up on giving in one year and skip it the next. 
  • "The Republican Tax Plan Will Make It More Expensive to Donate to Your Church" The Washington Post 12/15/17