MACT

With the passage of the budget reconciliation bill on July 4, nonprofits are facing huge shifts in the national fundraising landscape, and many of you are experiencing uncertainty.  But changemakers will always rise up to find a way forward. 

This bill slashes federal support for essential services while making it harder for organizations to secure funds from wealthy and corporate donors. But at the same time, it includes a provision that has the potential to strengthen grassroots fundraising: The 90% of taxpayers who don’t itemize will now be able to deduct up to $1,000 (or $2,000 for joint filers) in charitable contributions each year. The impact? Large gifts may decline, while incentives for everyday donors improve. This enormous shift may provide a meaningful door of opportunity.

Grassroots giving is already a growing source of funding for nonprofits, and this trend is accelerating. According to Givebutter, 95% of donations made via their platform are under $500.

Small-dollar donors have always mattered. Now they matter more than ever. 

Now is the time to lean into small-dollar strategies, including:

• Prioritizing grassroots outreach and stewardship
• Positioning small donors as essential to your mission
• Tuning your tools and messaging for individual giving 
• Reassessing risk and exploring new revenue streams 
• Strategically engaging your large & corporate donors

This moment is full of real challenges, but also real tools, data, and community to help you meet them. The universal charitable deduction is more than a policy update—it’s an invitation to engage more people in your mission.