NOTE This information is out of date. See our updated charitable deduction calculator.
It can be said that donors save by receiving a charitable deduction for their gift, but have you ever leveraged this fact in your solicitations?
You are visiting with a donor who has given your charity $2,000 in each of the last three years. After your terrific presentation, the donor says, “Given the economy, I want to hold my giving to last years’ amount, so put me down for $2,000.” Do you accept the pledge or reframe the discussion?
Consider testing this formula before your visit: Assuming you know or can estimate the donor’s tax bracket, you also know that a gift of $2,000 in, for example, the 35% bracket saves $1,076 in taxes. Ask your donor to consider a gift of $3,077, which would result in a $2,000 reduction of their net worth.
The charitable deduction calculator below will give you an estimate of a donor’s potential contribution given this strategy.
This calculator is for estimation and discussion purposes only. High-income prospects, we assume, have other itemized deductions. For more ways to leverage your solicitations through greater use of the tax code and other elements in the negotiation of a gift, contact us.