The payroll tax cut that had been in place since 2009 was allowed to expire at the beginning of this year, which means that American workers’ take home pay is reduced by 2%.
The payroll tax cut expiration means fewer donors for nonprofits–but that makes sense. If the overall pool of dollars available to give decreases, donations probably will decrease as well, unless people generously choose to curtail their discretionary spending.
The heartening news? The vast majority of people who consistently give will still give. Your organization’s true donors–the ones whom you’ve built relationships with and who believe in your cause–aren’t going anywhere.
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Payroll Tax Increase Will Take Bite Out of Giving, Survey Says [Chronicle of Philanthropy]