After years of strong growth, total charitable giving rose just 0.7% in 2018, according to a new report on philanthropy by Giving USA. When adjusted for inflation, total giving declined 1.7%.
Last year was the first time the impact of the new tax law, which eliminated or sharply reduced the benefits of charitable giving for many would-be donors, could be measured.
Altogether, individuals, bequests, foundations and corporations donated an estimated $427.71 billion to U.S. charities in 2018, Giving USA said. But giving by individuals fell, while contributions from foundations and corporations rose.
“We certainly do have a pretty stark picture that tax reform took effect and charitable giving declined,” said Laura MacDonald, the president of Benefactor Group and vice chair of the Giving USA foundation board. However, a volatile stock market, which took a dive near the end of the year, may have also played a role, she said.
GOP tax law dis-incentivized charitable giving // Charitable contributions take a hit following tax reform https://t.co/HfEUsTptpp
— Thomas S. Kidd (@ThomasSKidd) June 18, 2019