taxes

Payroll Tax Increase Expected to Suppress Charitable Giving

By Cynthia Price, Director of Communications

infographic on charitable giving

Click to view the full graphic.

I’ve noticed my paycheck is a bit smaller with the return of the 6.2 percent payroll tax, a 2 percent increase over the 4.2 percent rate we’ve experienced for the past two years. I’d already identified and committed to my charities this year, so it’s not going to change my giving levels, although I may have to see fewer movies or cut back on my coffee shop visits.

At ChildFund, we were curious as to what Americans might say when asked whether the tax increase would impact their giving. Today, we release a survey conducted for ChildFund by Ipsos Public Affairs.

Here’s what we found:

  • 20 percent will reduce their charitable giving by an average of 29 percent.
  • 21 percent will not give at all to charity in the coming year.
  • 54 percent will continue to make charitable donations at the same level.
  • 6 percent anticipate giving more.

“While there is some good news in these findings, the survey results suggest a challenging year ahead, in what already has been a demanding fundraising climate,” says Tereza Byrne, ChildFund’s chief development officer.

“Nonprofit organizations like ChildFund can take comfort in the fact that six in 10 Americans will either maintain or increase their charitable giving,” she adds. “What is alarming, however, is the anticipated decrease in contributions by as many as one in five givers. If that comes to pass, it will likely have broad-reaching consequences across the nonprofit landscape.”

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 859 other subscribers

ChildFund
Follow me on Twitter