Fundraisers are entering their year-end mode, and for many organizations the majority of their donations come in the last quarter of the calendar year. What is unknown is how the new tax law will change the way people give this season.
Even though there was a change in the itemized deductions limits, it’s unlikely taxpayers adjusted their income tax withholdings. If donors have not been planning, they won’t discover the tax consequences of the tax law until next year. That’s why recognizing donor uncertainty regardin taxes makes good marketing sense.
As humans, we are extremely susceptible to emotion. We base our decisions on emotions first and logic second. When anxious, we want to take action to protect ourselves and our communities. Using this emotion in your communication can help your donors believe they have a chance to improve something. Conversely, something may go wrong if they don’t act. By getting them to feel responsible for something they can control, you can get donors to act.
Addressing your donors’ uneasiness about taxes and economic markets can provide them with a source of predictability about their philanthropy. Communicate to your donors that there are still tax-advantaged ways to support the organizations they care about. And here’s how:
It’s not too late to have a positive effect on your donors’ 2018 tax returns and it will be a win-win for all!