Connecting with Major Donors (Part 1)
A couple of years ago, Chronicle of Philanthropy noted that major donors had cut back on the big gifts to charities. The story cited various studies in which wealthy donors were following similar patterns to those exhibited after the Great Depression. Well, we are just emerging from the Great Recession after all.
Back then, two good reasons for their prudence existed; under the income tax changes beginning in 2013, we now have a third:
- Investment returns improved last year but confidence of a secure economic future is still not very strong, making folks less generous about sharing their wealth.
- Charities have been in a severe squeeze during these tough times as well. With increased demands for their services, the need for good management is even more essential. Large donors are savvier about where to make those big gifts.
- Starting in 2013, those with joint gross income more than $450,000 ($400,000 for the unmarried) are seeing their itemized deductions phased out. With fewer potential deductions for charitable contributions, those gifts cost them more; thus, they must be more careful about their giving.
In our next blog we’ll share Andrew Wolsen’s thoughts about how to expand your relationship with major donors and improve your chances of attracting their support.
Meanwhile, the staff at Online Stewardship remains available to assist with accounting and management needs, enabling you to give current and potential donors the extra assurance they need that they’re giving to a trustworthy organization.
Email us at Lynn@onlinestewardship.com or call 904-398-4747.
