Don’t forget the match
Your organization and other nonprofits may still be reeling from the news a few months ago that charitable giving took a big hit in 2022. You’ve also no doubt been watching the markets rally off and on this year and kept your fingers crossed that inflation may have abated somewhat. Given these headwinds, most certainly your development team is laser-focused on cultivating individual and family donors for both year-end gifts as well as for long-term support, including encouraging donors to support your organization’s agency or endowment fund at the community foundation.
As you gear up for holiday season giving campaigns, don’t forget about corporate giving and matching gifts programs. Although corporate giving was down in 2022 when adjusted for inflation right along with the rest of giving, it’s nevertheless a category that should not be overlooked. Especially with corporate downsizing and some headquarters moving across state lines, you’ll want to keep the dialogue going with business leaders and associates of large employers in our region.
Ask individual donors whether their year-end gift might be eligible for a corporate match. Many employees are not even aware that their company offers a matching gifts program. Encourage your donors to investigate and tap into this benefit. Mentioning matching gifts programs in your letters, emails, and social posts will help ensure that your year-end communications aren’t inadvertently causing you to miss out on corporate and employee giving to your organization.
Given the overall decline in giving, the potential of matching gifts is perhaps, well, unmatched. Nearly 80 percent of the 26 million individuals working for a company with a matching gifts program are either unaware of their company’s match or lack specific information; 84 percent of donors are more likely to donate when a match is offered; and 33 percent would give more knowing that a gift would be matched and doubled. Yup. That’s a lot of potential to grow your annual fund or boost the assets in your endowment fund at the community foundation. We look forward to helping you grow!
Advocacy opportunity: It’s time to rally your donors
No doubt, you and your board members are watching to see what happens with theCharitable Act. If passed, this legislation would allow taxpayers to deduct a portion of their charitable contributions that exceed the standard deduction.
Proposed in early 2023, the measure could help offset the decline in giving by 21 million households (!) following the 2017 increases to the standard deduction. The proposed law is based on a similar pandemic-era law permitting non-itemizers to deduct up to $300 more than the standard deduction for their gifts to a qualified charitable organization. Commonly known as the “universal charitable deduction,” the amount was doubled to $600 (per person) for 2021 … and then the law expired.
Under the current proposal, single filers could potentially deduct up to $4,600 ($9,200 for joint filers) above the standard deduction, for starters, and deduct approximately one-third of the prevailing standard deduction amount in future years. Research indicates that most Americans support the expansion, and financial models cite a potential $17 billion increase in annual giving to charities. The measure has bipartisan support in the Senate.
During the giving season, you might consider asking your donors to reach out to their elected officials in support of the legislation. A groundswell of grassroots support will go a long way to increasing the changes that the law is passed.
Why give?
When individuals and families support the charities they care about, all boats rise. Encouraging philanthropic behavior can be a tough nut to crack when people don’t fully grasp the positive impact of the social sector on the quality of life in our community–and the impact on their own lives. As giving season gets into full swing, consider layering in messages to your donors that cause them to reflect on how the nonprofit sector (whether your organization or another nonprofit) has made a difference for them personally.
For example, you could include an article containing the following (or similar) message points in your next newsletter:
Many of you have your own stories about how philanthropy has touched your lives–on the receiving end.
–Your child’s life was saved because of a cutting-edge rare disease treatment that would not have been invented but for academic research supported by charitable dollars.
–You might not have recovered from a rough childhood without the help of a nonprofit social service agency that provided much-needed counseling.
–Your graphic design business wouldn’t have done nearly as well if charitable dollars hadn’t supported the local arts district to incubate talent.
–Your software start up would never have gotten off the ground if you hadn’t been part of a nonprofit mentorship program to teach you how to scale.
–You wouldn’t have your dog if a nonprofit rescue shelter hadn’t saved him from being euthanized.
–You would have lost valuable work days if a nonprofit hospice organization hadn’t been there to help take care of your dying parent.
Philanthropy matters. Every gift counts. We’re honored to be a part of your family’s holiday giving traditions.
You’ll tailor the words to your own donor audience, but you get the idea. The point here is that you are making an emotional connection and inspiring your donors to reflect on the value charitable giving has brought to their own lives. That inspiration, in turn, can be channeled into support for your organization’s annual giving campaign or endowment fund at the community foundation.
Please reach out anytime you’d like to brainstorm messaging to donors during the holidays. We are happy to be a sounding board.
This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.