Charitable giving in 2018 was concentrated among larger donors, showing how the tax-code changes enacted in late 2017 are rippling through the nonprofit sector, according to a report released Monday by the Association of Fundraising Professionals.
Revenue from charitable donations of at least $1,000 increased by 2.6% in 2018 and, The Wall Street Journal reports, there were signs that the tax law is discouraging some gifts. The number of donors declined 4.5% last year and donations under $250 dropped by 4.4%, while donations between $250 and $1,000 also shrank.
Overall, charitable giving rose an inflation-adjusted 1.6% in 2018, allaying charities’ worst fears about donations drying up because of the tax-law changes, but the slow growth is still causing concern among nonprofit leaders. The 2018 increase was slower than the 8.8% bump in 2017, says the report, but that came on the heels of a 1.3% giving decline in 2016—a yo-yoing that may be explained by some donors accelerating gifts from 2018 into 2017 because of the changing tax law.
Monday’s report draws on data from a representative panel of more than 4,500 charities. Individuals are filing their first tax returns under the new law now, and complete data from the government won’t be available for at least another year. Read the full story and analysis.