Effect of TCJA on Charitable Giving: “Sluggish” Growth in 2018

As reported by The Washington Post and other news outlets, the Fundraising Effectiveness Project‘s most recent report announced an unimpressive 1.6 percent increase in charitable giving for calendar year 2018.  Donations from general donors (gifts under $250) and mid-level donors (gifts between $250 and $999) each dropped by 4 percent from the prior year.  On the other hand, donations from major donors (gifts of $1,000 and more) rose by 2.6 percent.  The report also revealed that the number of donors decreased by 4.5 percent from the prior year.  Although not conclusive evidence, the report does lend some credence to the conclusion that the TCJA and the resulting decrease in taxpayers itemizing their deductions (which includes the charitable contributions deduction) has negatively affected charitable giving. 

Nicholas Mirkay