New Tax Affect On Year-End Donations
Last month I discussed my concerns about the effect of the new tax law on charitable giving. In talking to a number of colleagues at other organizations, the consensus is the tax law did hurt. Just how much I am still trying to discern. I do know that at one organization over 30k less came in after New Years from checks dated 12/31/2018.
Interestingly their acquisition program did pretty well. It was renewal gifts that went down. After doing a cursory search, I found donors that had given for numerous years who did not give 2018. So what to do and will this trend continue into 2019.
I am recommending being very conservative in budgeting income for 2019, much to the dismay of many a finance department. But it is better to upgrade your goals at mid-year then have to lower them. What you should do to try and bring back those donors you lost. I typically do a donor survey in Q1 this year I will be doing a separate survey of those that did not renew their gift asking basically what happened and can we do anything to change the situation in 2019. Beyond that, I am suggesting that stewardship is the key. We have to keep those who gave closer and reach out to those who did not give to try and let people know that your organization needs their support.