Many nonprofit organizations are unclear about what the new tax law means and its impact on individual giving.

Myth 1: 

• The tax deduction is more important than the relationship with your donors.

Fact:

• False. Donor motivations for giving to a charity are largely due to a personal connection to the cause.

Myth 2:

• Major donors are the only type of donors affected by the new tax law.

Fact:

• Nope. 75% of charitable contributions by the very rich are never deducted. Mid-tier donors who give between $700 and $1,000 a year, may opt for a change in giving behaviors for accounting purposes.

Myth 3:

• College, Universities and endowments can no longer solicit donations for athletic events.

Fact:

• Not exactly. Donors who pay for a license (“seat license”) to purchase tickets or seating for athletic events at nonprofit colleges and universities can no longer deduct 80% of the payment as a charitable donation.

Myth 4:

• "Bunched Giving" will become the next nonprofit giving trend.

Fact:

• Unlikely. Instead of making annual donations to nonprofits, some donors will choose to “bunch” their giving dollars over multiple years to make several years’ worth of donations in one year.

Myth 5:

• Donors that give recurring gifts won't anymore.

Fact:

• Not the case. Studies have shown that those that give on a recurring basis – typically with religious organizations or social services groups – don’t change their giving patterns in economic unrest, because they give for a shared purpose.

Tip:

• 93% of donors would likely give again if communicated with them more effectively, yet 75% never give again. Build relationships with your donors with a 3:1 rule. Send at least 3 messages about you

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