End of Year Giving in 2020

It’s that time of year again when donations ramp up and every nonprofit is absorbed with their end-of-year giving campaigns. Yet 2020 has shaken up the nonprofit world, in addition to the country. Here’s what you can expect from end-of-year giving this year.

What is end-of-year giving?

End-of-year giving encompasses all donations made in the last financial quarter of the calendar year and comes down to taxes and holiday giving. Holiday giving focuses on the “Holiday Spirit” or the “Spirit of Giving,” and includes Thanksgiving, Black Friday, and Cyber Monday traffic. Depending on your audience, holiday phrases, headlines, or content can drive more clicks to your website.

All charitable donations to 501(c)3s before January 1 can be deducted from your taxes. This push for donating at the end of the year ramps up giving. The time limit to tax-deductible donations is ideal for community foundations looking for donors for their funds, and using “tax” related keywords or ad copy can help drive more intention-based users to your site.

What’s different this year?

This year has brought change to every aspect of our lives, and nonprofit organizations have certainly felt the impact. Major changes nonprofits should be aware of are the two new tax benefits for donors from the CARES Act. For taxpayers who do not itemize their charitable donations, they can now deduct up to $300 for charitable contributions with the standard deduction. For those who do itemize their donations, the cap on charitable giving deductions for individuals has been raised from 60% to 100%. These advantages for taxpayers end December 31, 2020, so it’s important to make sure your supporters are aware of the changes.

COVID-19 has brought many people online for the first time, and this year there will be more online shopping than ever before. If you have a store, be sure to display your products in free listings on the Google Shopping tab. According to Google, 77% of US shoppers say they’ll browse for holiday gift ideas online rather than in-store. Advertisers should get ads out early and provide ideas for supporters to gift valuable donations, such as making donations in a loved one’s name or purchasing from your eCommerce store. 

Based on search intent and keywords, direct asks for donations perform differently on different platforms. People aren’t searching for “where to donate” or “who to donate to,” so it’s important for nonprofits to add content to their websites that entice users to donate. This content can cover ways to donate, gift ideas, benefits of tax donations, why donors should give to you over your competitors, and more. Advertisers can make direct asks for contributions on organic social media platforms or in email blasts. 

Explore our other blogs about end-of-year giving and get tips to make your fundraising successful and end the year well.