Reverse the trend: Motivate more giving, not less

Recent reports suggest that changes to federal tax policy could reduce charitable giving by as much as $5–7 billion annually. While philanthropy has never been driven solely by tax benefits, there's no question that tax incentives can influence the timing, structure, and level of donations—especially among higher-income donors.

For nonprofit organizations, this projected decline is a reminder that external factors can shape donor behavior in meaningful ways. But it's also an opportunity to refocus on what matters most: building strong, lasting relationships with supporters and reinforcing the value of giving at every level.

Here are three practical strategies to help your organization stay resilient and continue growing support, even in a changing environment.

Deepen donor engagement

When tax incentives fluctuate, relationships matter even more.

Donors who feel connected to your mission—and who clearly understand the impact of their gifts—are far more likely to continue giving regardless of changes in tax policy. That means consistent communication is key. Share stories, report outcomes, and highlight the real-world difference donors are making.

Consider increasing touchpoints throughout the year, not just during peak fundraising seasons. Personalized outreach, behind-the-scenes updates, and opportunities to see your work in action can strengthen trust and reinforce commitment.

Make sure you understand the technique of bunching donations. This could help donors support, not only your organization, but other favorites in a way that maximizes now restricted tax benefits.

Listen closely to what motivates your donors

Not all donors are driven by the same factors. While some may be influenced by tax considerations, many are motivated by personal experiences, values, and a desire to create change.

Take time to understand what resonates most with your supporters:

Which programs or outcomes inspire them?

What prompted their first gift?

How do they prefer to engage—with updates, events, or hands-on opportunities?

Simple steps like donor surveys, one-on-one conversations, or feedback opportunities can yield valuable insights. When you align your messaging with what donors care about most, you make giving feel more meaningful—and less transactional.

Expand your donor base across generations

One of the most effective ways to mitigate potential declines is to broaden your base of support.

Younger donors, in particular, are engaging with philanthropy in growing numbers—often starting with smaller gifts, volunteering, or peer-driven campaigns. While their giving levels may be modest today, they represent long-term opportunity.

Focus on:

Creating accessible entry points for first-time donors.
Encouraging recurring, smaller gifts to build habits.
Engaging volunteers as future financial supporters.
Building relationships that can grow into major gifts and legacy commitments over time.

A diversified donor base—spanning generations, giving levels, and engagement styles—creates stability and reduces reliance on any single group.

Staying focused on what endures

Tax law changes may influence giving patterns, but they do not change the fundamental reasons people give: belief in your mission, trust in your organization, and a desire to make a difference. By deepening relationships, listening carefully, and investing in the next generation of supporters, your organization can remain strong—no matter what shifts occur in the broader landscape.

As always, the most resilient nonprofits are those that keep their focus where it belongs: on impact, connection, and the shared commitment to strengthening the community.

This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.