Let's Hope They're Wrong: New Study Predicts Decline in Philanthropy Due to Tax Law
A new analysis featured in the Chronicle of Philanthropy predicts that individual giving will decline by 4% or about $16 billion in 2018, with almost all of it attributable to the loss of the charitable deduction and the increase in the standard deduction. Authors Alex Brill and Derrick Choe further show that the most significant impact will be on giving by those with higher income levels, mainly due to the increase in the standard deduction. Their study is in line with several other estimates projecting a decline.
What might this mean for you and your organization? Luckily, there's still time to invest in donor retention and acquisition to offset the risk. And there is always the chance that at the discrete organizational level, you will be lucky and you won't see much of an impact.
That said, change is desperately needed to avoid this debacle. If they haven't already, it's time for your Board President and your CEO to meet with your Senators and Members of Congress to advocate for restoration of the charitable deduction.