The U.S. Payroll Tax Increase Will Hurt Charitable Giving; Here's What Your Nonprofit Can Do
Have you looked at your paycheck recently? Notice a larger-than-usual chunk missing from it? That’s the payroll tax increase and according to a survey conducted by Ipsos Public Affairs for ChildFund International, this will significantly decrease charitable giving in 2013.
One in five say they’ll reduce giving
According to the data, the 2% tax increase will reduce giving by 29%. 21% of individuals questioned said they're not planning on giving at all this year.
What does this tax increase mean for my nonprofit?
It means your organization must plan for a leaner and smarter year. The following survey takeaways may help shape new fundraising strategies.
50% of survey participants believe it’s important that donations are used appropriately and honestly.
Your campaign must highlight its donation effectiveness and efficiency. Reduce any donor uneasiness with numbers, testimonials, and other facts. Make sure your nonprofit comes across as credible and reliable.
20% say their priority is feeling a sense of well-being in knowing they’re helping others.
This appeal is part emotional and part empirical. Develop a campaign that opens with a story that'll pull at the heartstrings but closes with indisputable numbers and actionable tasks.
14% donate because the cause reflects a personal value they hold dear.
This is a purely emotional appeal. Make sure your campaign echoes the values your donors hold. If they value family, focus on family and not community sustainability. What’s your nonprofit’s emotional lead?
7% say that receiving a tax deduction is the biggest motivation in giving.
Provide your donors with extra tax deduction information. The easier you make it for your donors, the better.
That being said, how can your nonprofit make a more effective donation appeal?
Photo Courtesy 401(K) 2013 2013