Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Financial Planning > Charitable Giving

New Tax Rule Leaves Many Donors Up in the Air

Your article was successfully shared with the contacts you provided.

Tax code changes continue to puzzle a significant number of donors when it comes to their charitable giving, according to new research from Marts & Lundy, a fundraising consulting firm.

“Overall, we are finding that regardless of their giving status — major gifts or annual fund — donors are uncertain about what tax changes will mean to their giving,” Marts & Lundy’s chief executive, Philippe Hills, said in a statement.

Hills recently cited a report that predicted that giving over the next two years would grow even in the wake of changes to the tax code.

For the new study, Marts & Lundy interviewed 105 top donors, and conducted online surveys that elicited 2,542 responses from donors at all income levels to its nonprofit clients.

In the interviews, 53% of donors said their giving would remain unchanged, while 37% were uncertain. Ten percent said they would increase their giving.

Online responses showed a different picture: 45% of donors with different income levels said they were unsure, while 39% said their giving would stay the same. And in contrast to the interviewees, 6% said they would reduce their giving.

The research found variance in responses across giving levels.

Forty-four percent of respondents who reported annual donations of less than $5,000 said they were unsure how the new tax law would affect their giving, compared with 31% of those who give more than $5,000 annually and 37% of top donors.

More than half of both interviewees and donors of $5,000 or more said their giving would remain the same, compared with 38% of smaller donors.

Interestingly, donors in the latter group were likelier to say they would increase their giving: 14%, compared with 11% for big donors and 10% for interviewees.

— Check out Charitable Giving by Taxpayers Who Don’t Itemize Plunges on ThinkAdvisor.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.