Is The Philanthropic Slowdown The New Normal?

This could be a tough year for charities, according to one association.

The first quarter of any year is usually a slow time for fund-raising, but this year’s first quarter was even slower than usual, according to a report compiled by the Association of Fundraising Professionals.

Changes to the tax laws that went into effect this year may be partly to blame, said the association.

The association sponsors the Fundraising Effectiveness Project, which put out the first quarter report. The project was created in 2006 through the collaboration of the association and the Center on Nonprofits & Philanthropy at the Urban Institute. The project’s goal is to conduct research on fund-raising effectiveness and help nonprofit organizations improve results.

Every metric the Fundraising Effectiveness Project analyzed during this year’s first quarter declined from the same period the previous year—with the exception of revenue produced by donors giving $250 or less, which rose 3.7%.

The report shows the total number of donors is down 6.3% from the first quarter of 2017; total revenue is down 2.4%; and the overall donor retention rate (the percentage of donors who continue to give to the same organization from one year to the next) is down 4.6%.

The number of new donors also fell by 12% from last year’s first quarter, and the number of newly retained donors—people who were new donors last year and who have made a second gift this year—was down 18%.

“If there is any kernel of good news in these numbers, it is that small donations are up,” says Michael Nilsen, vice president for communications and public policy for the Association of Fundraising Professionals. “But there is definitely cause for concern.”

Financial advisors can help clients continue to fulfill their philanthropic goals by starting the conversation between their clients and the charities, he adds.