Tax Reform and Charitable Giving: Gain Critical Insights from Your Data
Scot Henley | VP of Sales and Marketing
The tax overhaul legislation that recently passed in both the House and Senate still has some distance to travel before it reaches the President’s desk and becomes law. In both versions of the tax bills, the standard deduction that taxpayers can get would increase substantially, thereby reducing the incentive to itemize deductions. Charitable giving is a deduction that many Americans take advantage of, and charities across the country are growing concerned that the larger standard deduction will negatively impact charitable giving across the board.
What might that impact look like? Some estimates, such as a study from Indiana University’s Lilly Family School of Philanthropy, put that potential drop in giving in the ballpark of $13 billion.
Donors give for a variety of reasons. We give to help other people. We give because it feels good. We give because we believe in the causes we support. So, givers will certainly keep on giving, regardless of tax incentives. What’s in question is how the bills will evolve in conference, what the end result might look like, and what impact the legislation might have in reality.
Free Webinar: Tax Reform, Charitable Giving and Focusing on the Right Relationships
How predictive modeling can help nonprofits weather the impending storm
Wednesday December 13th 2:00PM ET
In this webinar, learn how you can utilize predictive modeling to target the right prospects to meet your fundraising goals, all while staying within your budget. VP of Sales & Marketing Scot Henley and Senior Analyst James Cousins will utilize Rapid Insight software to demonstrate how to quickly build models to identify your best targets for annual fund mailings, major gift campaigns and much more.
Can’t make the webinar? Register and we’ll send you a link to the recording.
Whatever the outcome, it serves as a potent reminder that nonprofit organizations need to work hard to build longstanding, fruitful relationships. After all, people give to people. Those “go to” relationships, those donors who are the best fit with an organization’s unique mission, are the ones who will give regardless of the tax implications.
More than ever, using advanced self-service tools such as Rapid Insight’s suite of software products can have a tremendous positive impact, shining a light on those donors who may be most apt to give but who may have previously been flying under the radar. Rapid Insight’s tools allow charities to blend together numerous disparate sources of data, cleanse and prepare the data, and gain critical insights through automated predictive modeling and ad hoc analyses.
In the end, if charitable giving slumps as a result of the tax reform legislation, Rapid Insight’s tools can help charities focus development officers on the right people. If giving does not slump, if this crisis is averted, being data-driven is quite powerful—not a bad thing! Those charities that use resources more effectively and efficiently will be able to drive more revenue and apply more funds straight to their respective missions. Nothing drives that point home like a threat looming on the horizon.