Uncertain about the impact of the new tax law passed by Congress? You’re not alone.
The tax deduction is more important than the relationship with your donors.
False. Donor motivations for giving to a charity are largely due to a
personal connection to the cause.
Major donors are the only type of donors affected by the new tax law.
Nope. 75% of charitable contributions by the very rich are never deducted. Mid-tier donors who give between $700 and $1,000 a year, may opt for a change in giving behaviors for accounting purposes.
College, Universities and endowments can no longer solicit donations for athletic events.
Not exactly. Donors who pay for a license (“seat license”) to purchase tickets or seating for athletic events at nonprofit colleges and universities can no longer deduct 80% of the payment as a charitable donation.
“Bunched Giving” will become the next nonprofit giving trend.
Unlikely. Instead of making annual donations to nonprofits, some donors will choose to “bunch” their giving dollars over multiple years to make several years’ worth of donations in one year.
Donors that give recurring gifts won’t anymore.
Not the case. Studies have shown that those that give on a recurring basis – typically with religious organizations or social services groups – don’t change their giving patterns in economic unrest, because they give for a shared purpose.
93% of donors would likely give again if communicated with them more effectively, yet 75% never give again. Build relationships with your donors with a 3:1 rule. Send at least 3 messages about your org, a project or impact before you ask for money