SIOUX FALLS, S.D. (KELO) — It’s Giving Tuesday, a day when people are encouraged to donate to nonprofits. In South Dakota, a group called South Dakota Gives has organized a Giving Tuesday campaign.
The group had at least two recent training sessions to help non-profits prepare for Giving Tuesday. More than 500 non-profits are expected to participate.
While non-profits geared up for the event, just how will some of those donations come this year?
Overall, mid-range donations of $250 to $999 are not at the 2017 levels.
A third quarter 2019 donation report from the Fundraising Effectiveness Project said that donations of mid-range level bounced back slightly from 2018. Gifts under $250 increased by .04% but were still down overall from 2017.
Donation numbers did improve from second quarter to the third quarter of 2019 but some numbers are still down from 2018.
The overall number of donors decreased by 3.6% from 2018.
Following a 2018 trend, mid-level donations continue to decrease during 2019. Gifts of $250 to $999 were down 1.7% in the third quarter of 2019. Those donations decreased by 4% overall in 2018.
While overall giving increased by 1.6% in 2018 in the U.S., more of those donations came from larger donors, the Fundraising Effectiveness Project said.
Still, the general American household gave an average of $2,514 in 2018, according to a 2018 study by the Indiana University Lilly School of Philanthropy.
But third quarter statistics show that larger donations were down in 2019. Major gifts declined by 5.2%, yet it’s an improvement from the second quarter when major donations were down by 8.2%.
While the types of donations fluctuate, overall donations have grown from $373.25 billion in 2013 to $427.71 billion in 2018.
Changes in the tax deduction law raised the standard deduction of $6,350 for individuals to $12,000 and raised the standard deduction for married couples from $12,700 to $24,000. Those changes may have impacted how people donated.
Feeding South Dakota, one of the nonprofits participating in Giving Tuesday, is aware of the fluctuations in how donations are being made.
Christina Oey, the organization’s marketing development director, said her organization closely follows giving trends.
Because of tax changes, donors who may have donated $5,000 in one year are stacking that donation for a $10,000 gift the next year to meet tax stands, Oey said.
The organization closely follows any changes or trends in giving, Oey said.
While the tax deduction changes may have impacted individual donors, the changes can provide more incentives for corporations, Oey said.
Giving Tuesday statistics show the day has been reaching new and smaller donors.
South Dakota Gives said on its website that before Giving Tuesday, only 5% of the day’s donors had ever given to a nonprofit before. Their average donation increased from $160 to $284 and they gave more often.
Giving Tuesday reports that the campaign movement has raised more than $1 billion online since it started in 2012.
In South Dakota, there were 1.75 million donors statewide with 1,358 of those as new donors in 2018, according to the South Dakota Humanities Council.
South Dakotans have various options for Giving Tuesday and for end of the year giving.
The state has 4,534 non-profits who filed with the IRS, according to the National Council of Nonprofits. The IRS lists 8,638 tax exempt organizations with 1,474 of those in Sioux Falls. Tax exempt organizations are not necessarily those that file 501c3 status. A 501c3 status allows a donor to deduct a donation to the organization.
Propublica’s list of non-profits in the state has 335 associated with arts and humanities, 434 associated with education, 154 associated with animals and environment, 319 associated with health, 1,200 associated with human services, 31 associated with international foreign affairs, 27 have an unknown or unclassified association and 11 have a mutual or member benefit association.