Many people make charitable giving decisions in November and December—or at least they used to.
With the increase in the standard deduction in the Tax Cuts and Jobs Act, fewer people will now receive tax benefits for their charitable donations. That leaves many wondering whether nonprofits will begin seeing significant decreases in their funding.
In the latest issue of The Takeaway policy brief from the Bush School of Government and Public Service at Texas A&M University, Dr. Kenneth Anderson Taylor, Director of Outreach and Professional Development for the Center for Nonprofits & Philanthropy and Assistant Professor of the Practice at the Center for Nonprofits & Philanthropy explores that topic.
Taylor notes that there is reason to be concerned. Individuals, not corporations or foundations, are the primary source of charitable giving, and though tax benefits are not the only reason people choose to give to nonprofit organizations, research indicates it plays a role.
In “Nonprofit Donor Motivation under the Tax Cuts and Jobs Act,” Taylor describes some of the influences that affect charitable giving and also makes recommendations to nonprofit leaders on how to prepare for whatever changes lie ahead.
The Takeaway is a publication of the Mosbacher Institute for Trade, Economics, and Public Policy.