Reduced Number of Individual Donors (2019’s Income Tax Standard Deduction Changes)

When the income tax standard deduction was raised starting last year, meaning far fewer donors are now itemizing their taxes, we saw a dip in individual giving that was evidently driven mostly by tax incentives.

We unfortunately expect that to worsen in 2020, after donors complete their 2019 income taxes and finally realize the extent of the reduced tax-impact of their gifts.

Although we always hope for selfless motivations behind gifts, the reality is many nonprofits will need to think more strategically about alternative, outside-the-box paths to sustainable funding.