New tax law and donor behavior

A message from the CICF Collaborative, including Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Foundation of Indiana 

Written by Jennifer Turner, CICF Vice President of Philanthropy 

If donors have seemed a bit unpredictable lately, you’re not imagining it. 

Across the nonprofit sector, many organizations are seeing a mix of continued generosity, delayed decisions and shifting giving patterns. Part of that reflects economic uncertainty. But part of it is tied to something more subtle: many donors are only now beginning to understand how recent tax law changes affect charitable giving. 

While attorneys, CPAs and financial advisors have been tracking these developments closely, many donors are connecting the dots for the first time after working through tax season themselves. 

For nonprofits, this creates both challenges and opportunities. 

Some donors may pause or reassess their giving. When people feel uncertain about finances, markets or tax implications, they often slow down decision-making. That may show up as delayed gifts, smaller commitments or increased questions about giving strategies. 

At the same time, moments like this create natural openings for conversation. Donors are paying closer attention and may be more open to thinking strategically about how philanthropy fits into their broader financial plans. 

A few reminders may help as you navigate these conversations: 

Not all donors are responding the same way
Some donors may pull back, while others lean further into community support, especially when they see growing needs around them. It’ll be important to stay engaged with your entire donor base rather than assume a single trend applies to everyone. 

Communication and solutions matter
Donors may be looking for guidance, even if they are not asking directly. While nonprofits should never provide tax advice, you can remind donors to speak with their advisors and share general information about giving strategies, such as gifts of appreciated assets or Qualified Charitable Distributions. Simple, consistent communication can help donors stay engaged and informed. 

This is all part of donor stewardship, get to know where your donors are at and factors that might influence or motivate their giving and then work with them and their financial advisors to think through how intentional giving can help them achieve all of their personal and philanthropic goals. As with so much of the work we do, it is about relationships and listening. 

Lead with purpose, not tax strategy
Tax incentives may influence timing, but they are rarely the primary reason people give. Donors support organizations because they care about outcomes, community impact and the future of Central Indiana. In periods of uncertainty, clear communication about your mission and impact matters even more. 

Flexibility matters, too. Some donors may begin bunching gifts, using donor-advised funds or exploring multi-year giving strategies. Organizations that make giving simple and communicate options clearly will be better positioned to maintain strong donor relationships. 

This is one area where the CICF Collaborative can help. We will continue sharing updates on charitable giving trends, donor behavior and tax law developments that may affect nonprofits across the region. We also encourage you to share these insights with your donors. Repetition can be helpful. 

Most importantly, thank you for the work you do every day to strengthen Central Indiana. From meeting urgent needs to improving quality of life through parks, trails, arts, education and civic infrastructure, nonprofits remain essential to our region’s future. We’re grateful to partner alongside you. 

About the Author 

Jennifer Turner has a passion for creating partnerships and connections within the community to create meaningful impact. As vice president of philanthropy at CICF, she helps support more than 1,300 families, companies, and not-for-profits design philanthropic plans that are both meaningful and impactful. With expertise in fundraising, capital campaigns, planned giving, and more, Jennifer helps organizations of all kinds maximize their missions and ensure their long-term sustainability.

About the CICF Collaborative 

CICF Collaborative is a partnership of philanthropic organizations working together to strengthen communities across the region. Each entity within the CICF Collaborative (including the cornerstone entities, Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Foundation of Indiana) brings deep knowledge, strong relationships, and its own individual, focused mission. The CICF Collaborative unites the entities by providing shared services, allowing the entities to operate more efficiently and effectively. By leveraging what we each do best, we’re able to better serve our communities and create more lasting impact, together. Learn more »