Tax reform has prompted many taxpayers to change the way in which they make charitable donations, according to a new study from Fidelity Charitable. Half of surveyed taxpayers reported that they had made at least one change in their charitable giving strategy since the new tax law went into effect, such as donating appreciated stock, “bunching” several years of charitable gifts into a single year or contributing to a donor-advised fund.
The good news is, these changes haven’t affected the sums that people are able to give to charity. According to the survey, 76 percent of taxpayers said they had donated about the same amount to charity in 2018 as they had the previous year, and 15 percent gave more.
Why do people give more? Thirty-two percent of respondents who gave more than they had in 2017 cited a request from a nonprofit or involvement in a pledge or campaign. Thirty-one percent said their increase was due to a salary increase or to interest in a charitable cause.