Some nonprofits and online-donation portals are reporting big increases in gifts last year compared with 2016 — an early indication that giving may have jumped substantially at charities nationwide in 2017. That may be especially true for large organizations that appeal to the nation’s wealthiest donors.
For example, Schwab Charitable saw a roughly 80 percent increase in the number of contributions to its donor-advised-fund accounts from July through December 2017 — the first six months of its fiscal year — compared with the same period in 2016. Though still tallying its total for the month, the University of Washington raised at least $100 million in December, which is already more than it had ever raised before in four weeks.
The hot stock market and a strong economy were key reasons for the increase, fundraisers say.
Social-service groups appear to continue to struggle, however. The Salvation Army predicts donations probably won’t increase by more than 2 percent.
Tax Bill’s Impact
The Republicans’ tax overhaul, signed by President Trump late last month, may have been behind some of the gains, especially in December, because many donors will see big changes in their tax bills and the financial benefits they receive from giving.
“The tax-reform bill clearly had an impact” on contributions to donor-advised funds, said Kim Laughton, president of Schwab Charitable, as many donors sought to lock in the tax benefits that were in place through December 31. Donor-advised funds allow people to take tax deductions for contributions immediately and choose beneficiaries later — which was convenient for people who sought to take advantage of last year’s deduction rules but were not sure which causes they wanted to support.
Ms. Laughton said new accounts jumped by more than 80 percent from July through December compared with the same period a year earlier — and that donors with funds increased the number of grants to nonprofits by 34 percent over that time, she said.
The organization is still tallying the dollar amount of its contributions during that period, but that figure is likely to have increased significantly given the high volume of total contributions, she said.
Schwab expects grants to charities to increase substantially over the next six months, Ms. Laughton said: “When we get a lot of new accounts at the end of the year, then they start granting the beginning of the year.”
Boosts for Donor-Advised Funds
Though still tallying numbers, Fidelity Charitable, the nation’s largest donor-advised-fund provider, said contributions to its accounts in 2017 appear to have outpaced the $6.6 billion given in 2016. The new tax law, strong markets, and the growing popularity of donor-advised funds are among the reasons for the growth, said Nabil Ashour, spokesman for Fidelity Charitable.
Smaller nonprofits that solicit donor-advised funds chalked up big gains at year’s end, too. The Community Foundation of Greater Chattanooga took in $24 million to its funds in 2017, half of that contributed to create new accounts. That’s up from the $11 million total donated in 2016, according to Maeghan Jones, the organization’s leader.
The last week of 2017 saw an astounding rush of giving, she said: “We had seven funds open that we never saw coming.” The group expected the average fund that week to be about $25,000. Instead, it was $100,000.
More Bright Signs
Other organizations offered early signs that indicate a favorable giving climate in 2017.
- The average amount of money raised online by schools and colleges that are clients of GiveCampus, a digital-giving company, jumped 31 percent in 2017 over 2016. And the average amount raised online in December 2017 jumped 52 percent over December 2016, said Kestrel Linder, chief executive of GiveCampus.
Part of the reason for the growth, Mr. Linder said, is that more schools and colleges are starting to recognize that online giving is not just for those who make small contributions. Donors who give more — say, in the $1,000 to $10,000 range — prefer online giving, too, he said. “Schools are engaging a broader cross-section of their entire donor population online,” he said. - Network for Good, another online-gift processor, reported a big jump in donations during the final week of 2017, after the new tax law was signed, compared with the same week in 2016. The number of donors and the number of gifts was up (12 percent and 14 percent, respectively), and supporters gave 17 percent more than during that week in the previous year.
- From July to November, the University of Washington — which is in a $5 billion capital campaign — raised $285 million, 28 percent more than it had raised over the same period in the previous year.
It’s hard to tell whether looming tax changes had a big impact on giving in December, said Walt Dryfoos, principal analyst for the university’s vice president for advancement. He attributed the growth in 2017 mainly to other factors.
“The campaign helps,” he said. “The economy here in Seattle is hot, and fundamentally people really believe in the mission and leadership of our institution.”
Positive Messages
Still, it’s always difficult to gauge how widespread increases in giving are. Experts often note that small nonprofits in regions with weak economies have more difficulty raising money than groups that are larger or in major cities.
Though it won’t have final numbers until later this winter, the Salvation Army, which relies heavily on its far-flung affiliates and volunteers for fundraising, expects to see a 1 to 2 percent gain in giving from its holiday appeals, according to Lt. Col. Ward Matthews, its national spokesman.
The charity credits some of that small gain to its positive “Fight for Good” slogan, which it started using late October through online videos and in conversations with supporters. Lt. Col. Matthews calls the uptick “amazing,” given the demands placed on donors earlier in the year for hurricane relief and recovery in large swaths of the country.
The Marine Toys for Tots Foundation is also awaiting a final tally of its year-end support, said Lt. Gen. Pete Osman, the group’s leader. But an increased focus on social media helped boost online support from $4 million in 2016 to $6 million in 2017, he said; direct-mail appeals probably brought in about $1 million more than the $24 million they attracted in 2016.
Roughly two-thirds of the group’s support is in the form of individual toy donations. Those gifts are unlikely to be affected by tax law, the charity leader said: “Most people who grab a toy and put it in a barrel aren’t looking for a tax deduction.”
Heather Joslyn contributed to this article.
