While we wait to see what impact tax reform could have on charitable giving in 2018, we’re getting an inside look at how 2017 fared in charitable giving.

Blackbaud, a software and services provider for nonprofits that processes most of the online donations made in the U.S., has released the Charitable Giving Report. The analysis shows overall charitable giving (to more than 8,453 organizations) increased by 4.1 percent last year to $29.7 billion, marking the sixth consecutive year of increases in giving.

2017 giving by the numbers:

• While overall giving increased by 4.1 percent, online giving increased 12.1 percent (for 5,709 nonprofit organizations), which resulted in more than $3.1 billion in online gifts

• Total fundraising from online giving topped 7.6 percent, a new record

• 21 percent of online giving was made via a mobile device

• Small nonprofits saw 10.7 percent growth in online giving (those with annual total fundraising less than $1 million)

• Medium sized nonprofits saw 14.9 percent growth in online giving (those with annual total fundraising of $1 million to $10 million)

• Large nonprofits saw 11 percent growth in online giving (those with annual fundraising more than $10 million)

• Of the 10 categories highlighted in the report, international affairs saw the largest growth in overall giving in 2017, with a 19.2 percent increase

• Faith-based nonprofits, healthcare and medical research all saw increases in overall giving ranging from 4.6 to 4.9 percent

• Both arts and culture and K-12 education saw small declines in overall giving

• Average online donation was $132 in 2017

The report states, “A convergence of economic, political, technological, and philanthropic trends helped boost giving in 2017. The 4.1 percent increase in giving during 2017 was a substantial jump compared to relatively flat growth in 2016.”

Blackbaud reports that the final three months of 2017 saw 5.1 percent increase in giving, noting that this end of the year giving growth could be linked to the tax reform, as people wanted to lock in giving incentives that won’t be available to them this year.

As CMF has reported, the tax reform package doubled the standard deduction, which now limits the number of people who can itemize. This decreases the number of tax filers who can claim a charitable contribution by 95 percent.  There is research that indicates tax incentives affect first time donations and the amount of the donations.

 As a result, the Joint Committee on Taxation has estimated the charitable sector could see a loss of up to $19.8 billion in charitable giving annually.

 “We may not have answers on that question until next year, when full 2018 numbers come in, or even beyond,” Chuck Longfield, Blackbaud’s senior advisor said. “For now, organizations are encouraged to remain conservative in their projections, with the understanding that increased donations in 2017 may have been a response to changing times, not growth that can be sustainably built upon.”

Want more?

Check out the Charitable Giving Report.