Tools and Techniques

Passage of the Tax Cuts and Job Act (TCJA) of 2017 created a towering concern for the foundation and non-profit communities. More precisely, as Todd Frankel noted in The Washington Post, worry was that the legislation would de-incentivize smaller participants, while patterns among more affluent donors were not expected to be impacted by the law. Taken as a whole, we now see, the numbers for 2017 are not a cause for alarm. Indeed, the just published Giving USA report shows that last year’s total was up 5.2%, and for animals and the environment (one of the nine major philanthropy subsectors) it grew 7.2%.

According to Giving USA, whose annual reports provide the most comprehensive charitable data available (encompassing individuals, foundations, bequests, and corporations), animals and the environment holds steady year-to-year at 3% of all giving. Dollar totals will vary yearly, of course, but it is encouraging that in 2014 this category rose 7%, there was another rise in 2015, and in 2016 it increased 7.2% (the largest of any subsector). Such numbers would seem to paint a positive picture for those of us who care about animal welfare and the environment, and the upward trend is one that we must hope continues.

TCJA is a reminder that the tools and techniques of fundraising evolve, and as the Chronicle of Philanthropy reports, there is an eroding donor base. With that said, it would be useful to know the role of crowdfunding, impact investing, investment clubs, donor advised funds, and venture philanthropy with regard to animals and the environment. All of these modes currently play a part, but I am not aware of evidence that captures their size, significance, or future potential.