July 3, 2013
The economy has hit nonprofits harder than many other entities because when people don't have money to give, organizations can't receive donations. However, a federal tax deduction provided to people who contribute a certain amount to nonprofits has allowed charitable contribution numbers to grow, according to recent data compiled by The Giving USA Foundation and its research partner, the Indiana University Lilly Family School of Philanthropy.
The study revealed giving reached an estimated $316.23 billion in 2012, a 1.5 percent increase when adjusted for inflation from a revised number of $305.45 billion in 2011. Eugene Tempel, founding dean of the Lilly Family School of Philanthropy, said that if donations to grow at this rate, charitable ventures will be able to reach pre-recession levels in less than a decade.
"Overall U.S. charitable giving is on a slow uphill climb – with some bright areas and some that are not as bright," Tempel told The NonProfit Times.
Tax deductions can make it easier to give
Congress and President Barack Obama's administration have thought about potential ways to reduce the tax deductions people receive when they give to a nonprofit, and that is one of the ways reasons Americans donate to certain organizations.
"Philanthropic giving fares best in a known environment, and has been dependent, in part, on certain factors holding true over the decades, including the charitable tax deduction," said David King, chair of the Giving Institute. "The uncertainty among donors created by policy makers' examination of the charitable deduction likely influenced giving in two very different ways in 2012."
Giving to nonprofits increased in 2012
With the tax deduction still in place, individual giving grew nearly 4 percent from the previous year. The government may be wise to look for other instances where they can remove deductions as nonprofits are a worthy cause for many Americans to contribute their money. Many of these people believe donating to organizations is an easy way to get a refund on their taxes. This is especially true for Americans who give larger sums and expect greater deductions from the government.
"Some donors may have 'prepaid' gifts they had intended to make in 2013 to ensure they received a tax benefit," said King.
Ready to chat? Get in touch today to request a no-obligation savings evaluation.
First Nonprofit has saved us so much money over the state’s program. We had one little glitch with the state recently and we contacted FNP immediately. FNP staff called us back immediately and moved to remedy the problem.
First Nonprofit has been a great partner. They have helped us saved hundreds of thousands of dollars! They have awesome resources for our nonprofit organization. Thanks for the partnership.
Life is certainly busy these days but having business partners like First Nonprofit has made some of the process hassle free. We have worked with this team for years. When we changed payroll systems, they outlined every step. I think this team is terrific and I know they get the job done! Thank you, Cruz, to all the team at FNP.
FNP has helped our agency to save thousands of dollars every year on our unemployment coverage. The service is phenomenal, and we are thankful to their team as our partner. My experience working with Marshall on the advocacy around UE for nonprofits was also a highlight as someone who teaches advocacy and lobbying for nonprofits. Really, your whole team is top shelf, so thank YOU!
Chicago Children’s Theatre has greatly benefited from our partnership with First Nonprofit, and I have always enjoyed working with the staff on our filings and any complicated questions. I would not hesitate to recommend First Nonprofit to fellow nonprofits. We’re very happy customers.
FNP is a great resource for Daniel Kids. To have a TPA that we can count on to take point on not only managing our unemployment claims, but to support and guide any protest hearing, is invaluable. All the professional support staff we have worked with have been excellent, very knowledgeable and responsive. We are grateful for the help and support, thank you.
When I first began in my position at my organization, I hadn’t had experience working with a company like FNP. The staff was so patient and helpful in helping to explain the benefits of First Nonprofit. Anytime I reach out with a question I receive a quick, clear, and thorough response. I’m so thankful that we decided to partner with FNP. Their excellence in customer service, coupled with their variety of packages frees us up to truly serve our staff and community with a peace of mind knowing that our organization is protected against unanticipated unemployment insurance expenses.
First Nonprofit gets an A+ in my book. You are so easy to work with & very knowledgeable! Whether it is my quarterly correspondence with Kim or my random interactions with Dawn about a bond … I am so pleased that I get to work with such a helpful company. Thank you!