In the weeks leading up to the passing of sweeping tax reform, my in-box was deluged with emails from non-profit associations and publications urging their readers to plead with Congress to vote against the tax plan. In some cases the messages were just slightly short of hysteria.

When charitable giving is threatened, it’s vital that our non-profit organizations speak up, and many did so effectively, if not successfully. But here’s what puzzles me: the law has passed. Whether we love it or hate it, it’s reality. The time has come to figure out how to live with it. But all I continue to hear is doom and gloom for the non-profit sector. Case in point: The Los Angeles Times published an Op-Ed on December 17, 2017 headlined The GOP tax reform will devastate charitable giving. Is all hope truly lost, or are we so mired in pessimism that “the end of charitable giving” will become a self-fulfilling prophecy?

Finding the Glass half empty

According to the doomists (if I may call them that….), the decrease in the number of people who will itemize their deductions is the #1 destroyer of charitable giving. But this theory assumes that the charitable deduction is the primary motivator of contributions. Experts in our sector have been telling us for years that tax deductions are #3, 4 or even lower on the list of donor motivations. Why are we suddenly throwing away years of research (not to mention conventional wisdom) which tells us that there are far more significant motivations that prompt a person to give? Will someone decide not to make that $100 donation because they’re not going to get $20 or $25 back next April? Ok…..perhaps that will be true for a few. But for most of our donors, it’s their relationship with us and their belief in our mission that is their primary motivator. And these are things we can actually control!

Turn that frown upside down

As I speak with clients and prospects who are understandably shaken by all of this “bad news”, we’ve come up with a few strategies to fend off the doom:

1. Get serious about cultivation
How well you connect with your donors – and how often – becomes more critical when one of their incentives for giving has been damaged or diminished. Take the time to review your annual giving strategies and consider increasing the number of times you reach out to this segment of your donor population. This is the group that is likely the most concerned about the “loss” of their charitable deduction. (Although interestingly it is highly likely they weren’t benefitting much from the charitable deduction anyway and just didn’t realize it.) I find that many non-profits refrain from soliciting their donors more than once or twice a year out of some sense that asking too often will backfire. But remember the adage that if you don’t ask, you won’t receive, and ask more often. Ask nicely, and you’ll find that most of your donors will be happy to hear from you because they already love you. And if they get annoyed, then perhaps they never loved you in the first place.

If perception is 9/10ths of reality, give them a new perception – help them understand the value that your organization provides to your community. Help them appreciate the impact of their contributions and how vitally important each and everyone of them is to achieving that impact. And speaking of appreciation……

2. Step up your stewardship

Now this one may take up a little more of your time, so please forgive me. But if you are going to ask more often, and your donors are giving generously to your organization despite their perceived loss of a deduction, make sure you’re also showing them an extra measure of appreciation. What can you do to show each donor – no matter how small the gift – how grateful you are for their support? Never underestimate the power of a personalized thank you. Write as many thank you notes as your hand will take, or at the very least add a handwritten signature and quick note to each thank you letter. If you already do this, consider decreasing the threshold for this effort. If your Executive Director usually hand-signs for gifts over $1,000, take that down to $500. If you personally call donors who make gifts of $10,000 or more, subtract a zero from that number. Employ volunteers and interns in the effort. The best thank you call I’ve ever received was from a college-aged intern who left me an eloquent message to let me know how much my gift was appreciated.

And never, ever, just send a receipt. I am shocked by the number of computer-generated forms I receive for smaller gifts to organizations. Make sure that every receipt is accompanied by a sincere letter of appreciation for how their gift will make a difference to your organization. Be sure to update the letter on a frequent basis so that your most loyal donors don’t see the same message every time they make a gift. Letters that contain timely information will feel fresh, less automated, and more sincere.

3. Promote the IRA Charitable Rollover

If you haven’t heard, I have some good news for you: Congress did not touch the IRA rollover. This means that any of your donors who are required to take an annual distribution from their retirement accounts will still receive tax benefits from charitable gifts, even if they no longer need to itemize.

Consider creating a targeted strategy to let your older donors know about this opportunity to give directly from their IRA. Rollover gifts of up to $100,000 are distributed to charity as if the donor never received the income. VOILA! No income = no income tax. A charitable deduction in disguise. Many IRA plan providers begin reminding their participants about their RMD’s in early Fall, so don’t wait until December to promote this giving opportunity – it might be too late. And make sure your donors know that gifts of any size are acceptable – don’t let them be distracted by the $100,000 maximum, which can sometimes lead to a feeling that this is only a program for the wealthy.

It’s time to buckle down and accept our fate. Tax reform is here and it’s not going anywhere for the foreseeable future. But guess what……you do amazing work that impacts your city, your state, your world. Be confident! Be unabashed ambassadors for the good work you do. Enthusiasm is infectious, and with a little effort it will spill over to those who already love you and want to support you. Let them know how important they are to you. And then sit back (hah!) and watch what happens.