Early indicators show donations increased in 2018, and experts predict continued growth in 2019
Both Blackbaud and the Association of Fundraising Professionals reported that charitable giving in the United States increased approximately 1.7% in 2018. This is despite predictions of economic think tanks that the Tax Cuts and Jobs Act would result in significantly lower contributions. For example, in June 2018 the American Enterprise Institute concluded the tax law would trigger a decline in giving by $17.2 billion, approximately 4%.
While the broader impact of the new tax law was overestimated, the Association of Fundraising Professionals’ Fundraising Effectiveness Project noted that smaller gifts have materially declined year-over-year. Gifts under $250 dropped by 4.4% and gifts between $250 and $999 dropped by 4.0%.
In 2018, charitable growth was exclusively driven by donors giving more than $1,000, which increased by 2.6%.
“Research has consistently shown that major donor philanthropy is motivated by transformational impact, not by tax breaks,” said Bob Westfall, CEO of Westfall Gold and author of The Fulfillment Principle.
Experts predict that charitable giving will continue to increase in 2019 and 2020, subject to market conditions. The Philanthropy Outlook for 2019 & 2020, researched and written by the Indiana University Lilly Family School of Philanthropy and presented by Marts & Lundy, forecasts total giving will increase by 3.4 percent in 2019 and by 4.1 percent in 2020.
“In order for non-profit organizations to grow in this environment, they must focus on deepening and growing major donor relationships,” noted Westfall.
- Webinar – Moving Major Donors from Transactional to Transformational Giving - August 15, 2019
- Westfall Gold Major Donor Experiences Raise $102 Million - July 18, 2019
- Building a Comprehensive Donor Development Strategy – Index - April 23, 2019
- Building a Comprehensive Donor Development Strategy - April 23, 2019
- Leading Experts in Major Donor Philanthropy Announce Strategic Alliance - April 4, 2019
- Charitable Giving Increases Despite New Tax Law - March 18, 2019
- Major Donors Give $165 Million to Non-Profits - January 29, 2019
- Charitable Giving Reaches Record High in 2017 - June 30, 2018
- Westfall Gold Raises $87.8 million in Three Months - June 18, 2018
- Westfall Gold Raises Record $131,000,000 in Major Donor Fundraising - December 31, 2017