How the Election of Donald Trump as President Could Shape US Charitable Giving

The results of the 2024 U.S. presidential election have brought Donald Trump back into the White House. His victory, like any major political shift, is expected to influence numerous sectors of society, including charitable giving during the holiday season. For nonprofit organisations, understanding these potential impacts is essential for adjusting strategies and maximising year-end contributions.

1. Economic Confidence and Uncertainty

Presidential elections often create a ripple effect in financial markets, and Trump’s leadership style is no stranger to influencing economic volatility. Charitable giving is closely tied to economic confidence, as donors tend to contribute more when they feel secure about their financial futures. If markets stabilise and consumer confidence grows under Trump’s anticipated policies, year-end giving could remain robust. However, if uncertainty or divisive policies dominate, donors might take a more conservative approach, affecting nonprofit revenues.

2. Tax Policies and Incentives

During Trump’s previous presidency, the 2017 Tax Cuts and Jobs Act (TCJA) significantly changed the landscape for charitable giving. While the standard deduction increase simplified taxes for many Americans, it also reduced the number of taxpayers itemising deductions, thereby lowering the direct tax incentive to donate.

If Trump signals similar or additional tax policy shifts, especially those affecting deductions for charitable giving, donors might accelerate their contributions to maximise tax benefits before changes take effect. Nonprofits should proactively educate donors on current tax advantages to encourage year-end giving.

3. Shifts in Donor Priorities

Trump’s leadership has historically amplified focus on issues like immigration, national security, and economic nationalism. Donors may prioritise organisations aligned with these themes or causes they perceive as threatened or underfunded due to policy changes. For example, during Trump’s earlier presidency, nonprofits advocating for social justice, environmental protection, and immigrant rights experienced surges in donations.

Charities focusing on traditionally non-political areas like education or health may need to highlight their broader societal impact to maintain donor interest amidst these shifting priorities.

4. Polarisation and Political Giving

A second Trump presidency is characterised by heightened political polarisation. This divisiveness often spurs an increase in political donations and support for advocacy groups, potentially diverting funds from traditional charitable causes during the holiday season. Nonprofits can mitigate this by emphasising their apolitical missions and showcasing how their work brings communities together, especially during the season of giving.

5. Messaging Matters More Than Ever

In a politically charged environment, how nonprofits communicate with donors can make or break their holiday fundraising campaigns. Charities should focus on unity, hope, and the direct impact of donations, steering clear of overtly political rhetoric unless it aligns with their core mission. Storytelling that highlights individual impact and community resilience will resonate deeply with donors seeking to make a difference amidst national uncertainty.

What Nonprofits Can Do This Christmas

• Educate Donors on Tax Benefits: Provide clear information on the current tax incentives for charitable giving and how donors can maximise their impact before year-end.
• Highlight Local Impact: In a polarised environment, local and community-focused charities often gain traction, as donors feel their contributions directly address issues close to home.
• Leverage Technology: Digital giving platforms, social media campaigns, and virtual fundraising events can help nonprofits reach a broader audience, especially as holiday giving ramps up.
• Prepare for Advocacy Giving Trends: Be ready to address donor interest in hot-button issues or collaborate with advocacy groups to amplify impact.

Conclusion

The return of Donald Trump to the presidency brings both challenges and opportunities for charitable giving this Christmas. Nonprofits that stay attuned to economic conditions, donor sentiments, and messaging strategies can navigate this complex environment successfully. By emphasising their mission and the tangible impact of contributions, charities can inspire generosity even in times of political and economic uncertainty.

As we approach the holiday season, the spirit of giving remains a unifying force—one that transcends politics and reminds us of our shared humanity.