Overview of Association of Fundraising Professionals (AFP) and Charitable Act Impact
AFP comprises 27,000+ members across 180 chapters globally who raise over $115 billion annually for charitable causes. Members must adhere strictly to the AFP Code of Ethics, promoting honesty, integrity, and transparency in fundraising efforts. The Charitable Act (S.566/H.R.3435) aims to renew the universal charitable deduction and potentially boost charitable giving. Research indicates a positive impact of the deduction on annual gifts, but post-expiration, charitable giving saw historic lows in 2022, with a notable decline in both total donations and number of donors.
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About AFP 27,000+ members in 180 chapters across the U.S. and around the world. Members raise funds for every conceivable charitable cause. Collectively raise over $115 billion every year for their organizations. Abide by the only enforced code of ethics in the fundraising profession.
AFP Code of Ethics www.afpglobal.org/ethics Members must sign the AFP Code of Ethics every year. The code ensures that fundraising is practiced with honesty, integrity, transparency, accountability and adherence to safeguarding the public trust. The code is upheld by a strict enforcement process directed by the AFP Ethics Committee.
The Charitable Act (S. 566/H.R. 3435) Universal charitable deduction expired at the end of 2021 Increase the cap on the previous deduction from $300/$600 to one-third of the standard deduction ($4,600/$9,200) Extend the availability of the deduction through 2024. Allow gifts to donor-advised funds. Estimated to increase giving by $17 billion a year.
Research on Universal Charitable Deduction Overall annual gifts: 7.5% INCREASE in gifts of exactly $300 in 2020 overall compared to 2019 (the latest year without the universal charitable deduction). 7.5% INCREASE in $300 gifts in 2021 compared to 2019. On December 31, the last day of the year when many charitable contributions are given so donors can take advantage of tax incentives: 33% INCREASE in gifts of exactly $300 in 2020 compared to 2019. 7% INCREASE in $300 gifts in 2021 compared to 2019.
2022: Historic Lows After UCD expired, FEP data found: 1) total dollars given to charities declined and 2) overall number of donors sharply declined by 10 percent. According to Giving USA, 2022 was one of the worst years in philanthropy history. o Giving dropped 10.5 percent after inflation, only the fourth time that donations have fallen since 1956. o Giving by individuals, who typically provide the bulk of all donations, fell by 13.4 percent after inflation. Even as U.S. GDP grew by 2.1 percent, charitable giving as a share of GDP shrunk and charitable giving as a share of personal disposable income dropped to 1.7 percent a near 30-year low.
