As was reported recently by CBS News (source below), fundraising for 2018 is down. Unfortunately, the new federal tax law that came into effect earlier this year was expected to depress giving to charity, and sure enough, that seems to be the way it is playing out so far in the year.
As was noted in the CBS report in an interview with Steve Taylor, a senior vice president at United Way Worldwide; the U.S. operation is one of the largest charities in the nation:
"'We know that the main reason why people give to charity is not the tax incentive... We also know that the tax incentive allows people to give a little bit more than they would have otherwise. What you have is tens of millions of people who will give a little bit less, and that adds up to tens of billions of fewer dollars given to charity.'
"Taylor's concerns were highlighted in a recent report released by theFundraising Effectiveness Project (FEP), which showed that total revenue to nonprofits during the first three months of the year fell 2.4 percent compared with 2017. The total number of donors plunged 6.3 percent on a year-over-year basis, while the donor retention rate, which measures the numbers of donors who contribute to the same organization from one year to the next, dropped 4.6 percent. And the numbers of new donors plummeted by 12 percent."
How To Stay Ahead of the Game
Now that you are aware that giving is down across the board, and you can perhaps see that the decreased giving is part of a sector-wide pattern, it's essential to be aware of what's happening and take action. The following are some of the things I would do if I were still the CEO of a nonprofit so I wouldn't get caught in a situation where my team and I are not prepared for a potential decrease in revenue.
Source: CBS News
Source: Fundraising Effectiveness ProjectAuthor: Wayne Elsey Published: 2018-06-27