How to Sustain Donor Support When Conditions Shift

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 

By Diana Coyle, CICF Director of Nonprofit Services and Sustainability 

Recent reports suggest that changes to federal tax policy could reduce charitable giving by as much as $5 to $7 billion annually. While philanthropy has never been driven solely by tax benefits, there’s no question that tax incentives can be part of a larger charitable giving strategy among higher-income donors. 

For nonprofit organizations, this projected decline is a reminder that external factors can shape donor behavior. But it’s also an opportunity to refocus on what matters most: building relationships with supporters and reinforcing the value of giving at every level. 

Here are three practical strategies to help your organization grow support, even in a changing environment. 

Deepen donor engagement 

When tax incentives fluctuate, relationships matter even more. 

Donors who feel connected to your mission—and who clearly understand the impact of their gifts—are far more likely to continue giving regardless of changes in tax policy. That means consistent communication is key. Share stories, report outcomes, and highlight the real-world difference donors are making. 

Consider increasing contact year-round, not just during fundraising seasons. Personalized outreach, behind-the-scenes updates, and opportunities to see your work in action can strengthen trust and reinforce commitment. 

Make sure you understand the technique of “bunching” donations. This could help donors support not only your organization, but also other nonprofits in a way that maximizes newly-restricted tax benefits. Reach out to the team at the CICF Collaborative to learn more about how bunching using donor-advised funds is helping donors increase their support of favorite charities.  

Listen closely to what motivates your donors 

While some donors may be influenced by tax considerations, many are motivated by personal experiences, values, and a desire to create change. 

Take time to understand what resonates most with your supporters: 

• Which programs or outcomes inspire them? 

• What prompted their first gift? 

• How do they prefer to engage—with updates, events, or hands-on opportunities? 

Simple steps like donor surveys, conversations, or feedback opportunities can yield valuable insights. When you align your messaging with what donors care about most, you make giving feel more meaningful—and less transactional. 

Expand your donor base across generations 

One of the most effective ways to mitigate potential declines is to broaden your base of support. 

Younger donors are engaging with philanthropy in growing numbers. While their giving levels may be modest today, they represent long-term opportunity. 

Focus on: 

• Creating more access for first-time donors 

• Encouraging recurring, smaller gifts to build habits 

• Engaging volunteers as future supporters 

• Building relationships that can grow into legacy commitments over time 

A diversified donor base—spanning generations, giving levels, and engagement—creates stability and reduces reliance on any single group. 

Staying focused on what endures 

Tax law changes may influence giving patterns, but they do not change the fundamental reasons people give: belief in your mission, trust in your organization, and a desire to make a difference. 

By deepening relationships, listening carefully, and investing in the next generation of supporters, your organization can remain strong—no matter what shifts occur in the broader landscape. 

As always, the most resilient nonprofits are those that keep their focus where it belongs: on impact, connection, and the shared commitment to strengthening the community. The CICF Collaborative is honored to be your partner as you increase support for your mission, inspire your donors to make planned gifts, and build your endowment or reserves. We are here for you! 

About the author 

Diana Coyle, director of nonprofit services and sustainability, is dedicated to helping Central Indiana nonprofits access the tools, knowledge, and relationships they need to thrive. In collaboration with her CICF colleagues she supports CICF fundholders offering professional development, resources, and technical assistance that strengthen organizations and their leaders. With more than 15 years of experience in leadership and community engagement, she is committed to fostering connections that amplify the missions of nonprofits and create lasting impact across the region.

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 »