Policy changes

In advance of changes to U.S. tax policy that will go into effect in 2026, high-net-worth donors and corporations may reconsider their 2025 charitable giving strategies. The ‘One Big Beautiful Bill’ which passed in July introduces a 0.5% of adjusted gross income (AGI) floor on individual charitable deductions (ie itemizers must donate 0.5% of their AGI before the charitable deduction kicks in) and a 1% of income floor for corporations starting next year.

While there’s debate about how significant the impact will be—especially since corporate giving already averages 1.1% of income—some experts suggest we may see an uptick in major gifts in 2025 as donors act before the new rules take effect.

Actions

Now may be the right time to:

• Engage your US major donors in conversations about their year-end giving
• Review your US donor strategies in light of upcoming changes
• Prepare for a potential shift in giving patterns from US major donors and corporations

Read the full article in The Chronicle of Philanthropy

Philanthropy in America

Though the reductions in US Federal funding have made news in recent months, it’s important to remember that philanthropy in America comes from many other sources. The latest Giving USA report, which provides an annual analysis of philanthropic giving in America, shows a 3.3% increase in charitable giving for 2024, with donations totalling US$593 billion.

Insights from Heather Hill

Heather Hill, CNM, CFRE, Head of International Fundraising for Chapel & York shares her thoughts: ‘If you’re fundraising in the US, you should take note that giving from individuals and corporations increased and foundation giving held steady. Furthermore, all causes saw an increase in support, with the exception being religious causes which decreased by 1% but still remains the leading recipient.’

Opportunities for international fundraisers

What does this mean for your international fundraising from America? There are still abundant opportunities to secure support for your mission. Be sure your organisation’s case for support is current and compelling, research your prospects to better understand their charitable priorities and motivations, and thoughtfully steward relationships.

We know that with all the information floating around in the media about the situation in the US, there are concerns about what may/might/could happen going forwards. Whilst we will not engage in any speculation we can clarify what, as of today, is the position, and what, if you or your stakeholders have concerns, you may want to look at doing regarding your US engagement. The overall message from us though is DO NOT PANIC.

The Current Situation

There has been no suggestion that 501(c)(3) status for the nearly 1.5 million 501(c)(3) organisations will be terminated. There has also been no suggestion that tax deductibility of donations to those organisations will be terminated. These would require administrative procedures. Up to now the focus has been on Federal (US Government) funding for activities with which the Administration does not agree such as DEI (Diversity Equality Inclusion) and Climate Change, the use of Federal funds and US international aid.

There are legal limitations as to what a US President can do and unilaterally terminating 501(c)(3) status is not in his legal remit. Executive Orders have been legally challenged and are with the courts to make further determinations.

Actions

If you and/or your stakeholders are concerned about the way things are moving in the USA, we can make the following suggestions for some small actions you can take:

1. Ensure you make any grants now rather than waiting so that could mean either through a Unanimous Written Consent or a Board Meeting
2. Speak to donors about accelerating any donations, particularly large ones.
3. Review the programmes for which you are seeking funds and perhaps moving from any DEI, Climate Change or similar activities which might be targeted.

We are constantly reviewing the situation and our extremely connected and involved Head of International Philanthropy, Heather Hill, is serving as the Coordinator for monitoring this. She is always available to you, as indeed am I to answer questions.

We wish you all the best.
Kind regards,
Nancy Bikson

In recent weeks, the new Administration in the United States has issued a number of orders and initiated actions. Many charities and organisations who receive support from US funders are concerned about what this means for their fundraising and support for their programmes. Whilst it is an evolving situation and many of these actions are facing legal challenges, Chapel &York is monitoring it closely. The high-level takeaway is that if your organisation is not currently or anticipating receiving funds from the US Government, nor working with partners who are, there will be no direct effect on your funding. You may, however, experience indirect effects of these funding cuts and freezes as the fundraising becomes more competitive due to affected organisations seeking replacement funding. We hope the following summary of what we know thus far and potential effects on funding is useful:

Diversity, Equity, and Inclusion (DEI)

“Ending Illegal Discrimination and Restoring Merit-Based Opportunity”

On January 21, the administration issued an executive order that requires every federal grant or contract to certify it is compliant with “anti-discrimination” laws and does not operate any programs promoting DEI that violate “anti-discrimination” laws. The order also targets for possible investigation philanthropies and public charities with assets of more than $500 million and medical associations and higher education institutions with endowments of $1 billion or more.

What to know: This primarily pertains to federally (US Government) funded programmes. US 501(c)(3)s are only impacted by this if they are receiving federal funds for DEI programmes (those promoting diversity, equity and inclusion), have more than $500 million USD in assets or are a university with an endowment of $1 billion or more. If you have a DEI programme, consider broadening its scope so that no one group is favoured or has exclusive eligibility.

Federal Funding Freeze

“Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs”

On January 27, the Office of Management and Budget imposed a temporary freeze on federal funding, including grants to a wide range of nonprofits. On February 10, Federal Judge John J. McConnell Jr. ordered the government to “immediately restore frozen funding.”

The Trump Administration has also stated its intention to close the U.S. Agency for International Development, an agency which provides $22 billion in grants and contracts to international organisations. On February 21, a federal judge dissolved the temporary restraining order blocking the Trump administration’s plan to put 2,700 USAID staff on leave and recall overseas employees of the United States.

What to know: If you are currently receiving funding from USAID or have an active application for these funds, it is highly unlikely this funding will be received or approved, respectively. If this pertains to your 501(c)(3), it is recommended that you diversify your fundraising and seek alternate funding sources. It should be noted, however, that this freeze will have the knock-on effect of creating a more competitive fundraising environment as other organisations also seek other funders to fill these gaps.

Nonprofits that receive federal support

“Advancing United States Interests When Funding Nongovernmental Organizations”

On February 6, a memo stated many NGOs (, i.e., nongovernmental agencies, also known as nonprofit organisations) “are engaged in actions that actively undermine the security, prosperity, and safety of the American people” and “[i]t is the policy of my Administration to stop funding NGOs that undermine the national interest.” The memo directs the heads of executive departments and agencies to “review all funding that agencies provide to NGOs” and “align future funding decisions with the interests of the United States and with the goals and priorities of the Administration.”

What to know: This memo calls for added scrutiny and potential cuts of funding to nonprofits receiving federal (US Government) funding for missions and programmes that do not align with the current Administration’s priorities. If you are receiving federal funding, it is recommended you diversify your fundraising and seek alternate funding sources.

White House Office of Faith-Based and Neighborhood Partnerships

“Initial Recissions of Harmful Executive Orders and Actions”: This January 20 order rescinds Executive Order 14015 of February 14, 2021 (Establishment of the White House Office of Faith-Based and Neighborhood Partnerships). Nonprofits will no longer have direct connections to the executive branch through this office.

What to know: If your US 501(c)(3) is a faith-based organisation, you will no longer have a connection to the Administration through the White House Office of Faith-Based and Neighborhood Partnerships. This office had previously served as a channel to collect input from and provide feedback to faith-based nonprofits.

Immigration

“Protecting the American People Against Invasion”

This January 20 executive order requires the U.S. Attorney General and Secretary of Homeland Security to review all federal contracts, grants, and other programs that provide funding to nonprofits that support or provide services to “illegal aliens” for waste, fraud, and compliance with immigration laws. It also pauses funding, which affects nonprofits that may also serve legal, documented immigrants.

What to know: If your 501(c)(3) is receiving federal (US Government) funding for programmes related to immigration or refugee services, this funding is now halted. It is unlikely this funding will resume and is therefore recommended that you diversify your fundraising and seek alternative funding sources. It should be noted, however, that this freeze will have the knock-on effect of creating a more competitive fundraising environment as other organisations also seek other funders to fill these gaps.

Environment

“Initial Rescissions of Harmful Executive Orders and Actions”

This January 20 order revokes several executive orders related to the environment, including the implementation of the Infrastructure Investment and Jobs Act. Nonprofits receiving or expecting funding in clean energy transition, climate mitigation, and various environmental programs may have their funding paused or terminated.

What to know: If your 501(c)(3) is receiving federal (US Government) funding for programmes related to environment, climate change or clean energy, this funding is likely to be halted. It is unlikely this funding will resume and is therefore recommended that you diversify your fundraising and seek alternative funding sources. It should be noted, however, that this freeze will have the knock-on effect of creating a more competitive fundraising environment as other organisations also seek other funders to fill these gaps.

LGBTQ+

“Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government”

This January 20 executive order stated, “It is the policy of the United States to recognize two sexes, male and female. These sexes are not changeable and are grounded in fundamental and incontrovertible reality. Under my direction, the Executive Branch will enforce all sex-protective laws to promote this reality.”

What to know: If your 501(c)(3) is receiving federal (US Government) funding for programmes related to LGBTQ+ issues, this funding is in jeopardy. It is unlikely this funding will resume and is therefore recommended that you diversify your fundraising and seek alternative funding sources. It should be noted, however, that this freeze will have the knock-on effect of creating a more competitive fundraising environment as other organisations also seek other funders to fill these gaps.

Research

The National Institutes of Health (NIH) recently issued “Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Cost Rates,” stating NIH is imposing a standard indirect cost rate on all grants of 15%. This notice says the cap on the indirect rate will allow grant recipients a reasonable and realistic recovery of indirect costs while helping NIH make sure grant funds are primarily used to advance its mission. The notice states that as of February 10, an indirect cost rate cap of 15% would be in place for new and any expenses incurred on or after that date for existing grants. Per the notice, the 15% limit would replace previously negotiated rates with universities and research institutions. Indirect costs are those categorised as ‘Facilities and Administrative Costs.’

What to know: If your organisation is partnering with a US university or research institution to carry out research investigations, or if your organisation had been in discussion to begin such a partnership, this cap on indirect cost rates will likely have a significant impact on the US university’s or research institution’s ability to carry out its research as previously budgeted and planned. This may end or delay partnerships as alternate funding sources will likely need to be secured in order to carry out projects as a result of this cap.

Extension Announced

The Canadian Federal Government has announced an extension to the 2024 charitable donation deadline to 28 February 2025. This decision comes in response to the Canada Post strike, which significantly disrupted year-end donations critical to many charities.

Read the Canadian Federal Government news release to find out more.

Chapel & York Canada Foundation

The Chapel & York Canada Foundation welcomes this news, and we are happy to continue facilitating donations from your donors.

Tax return

💡 Not sure how this deadline affects your tax return? We encourage you to consult your tax professional for tailored advice.

Experience and Expertise

Kevin brings with him over 25 years of rich professional experience in both the nonprofit and corporate sectors. His career is driven by an unwavering passion to serve. At New York Life Insurance Company, he developed award-winning corporate responsibility programmes. At AARP Foundation, he created groundbreaking intervention initiatives in Chicago’s inner-city public schools. Most recently, at the Community Foundation of the Lowcountry, he helped donors define and achieve their philanthropic goals. Kevin’s work is backed by a strong educational foundation, holding an undergraduate degree in business management and accounting from the University of Massachusetts in Boston and a master’s degree in policy from Columbia University in New York City.

In Kevin’s own words, “I am delighted to join the dynamic team at Chapel & York, the market leader in international fundraising. As a trusted partner, the Chapel & York US Foundation is a critical resource, helping non-US organisations effectively access US donors and maximise support for their work. I look forward to engaging with our fundholders across the globe to ensure they benefit from Chapel & York’s knowledge and expertise.”

We’re excited for the innovative leadership and passion Kevin will bring to our US foundation. Please join us in welcoming him to our team.

The US Foundation

The Chapel & York US Foundation is a registered 501(c)(3) charitable organization and can help you accept donations from the US.

North America

The last three days of December are significant for charities in North America, as it’s a time when donors feel especially generous and eager to maximise their tax benefits. In fact, these three days are responsible for generating 12% of gifts for charities in a year! As the year is coming to an end, are you ready to harness the generosity of donors and boost your charity’s fundraising?

In our latest article, our team of international fundraising experts have collated their 4 top tips.

Tip #1: Designate a Small Team

The first thing you should do is to designate someone or a small team to focus solely on the last days of giving. The team should include a fundraiser who can create effective campaigns and an IT team member who can ensure your website can handle traffic spikes. This team will be responsible for planning and executing campaigns, monitoring the website, and making necessary changes as needed. This way, your charity will be ready to handle the influx of donors in the last days of December.

Tip #2: Plan Your Email Blast Sequence

One of the most effective ways to connect with donors in the last days of giving is through email. You should plan a sequence of email blasts to go out on December 29th, 30th, and 31st, reminding donors to make their final donation of the year. Your emails should include a clear message and call-to-action, emphasizing the urgency and impact of their donation. Don’t forget to personalize your emails and make them visually appealing to capture your donors’ attention. There are more great tips for your emails at

Tip #3: Have a Plan for Thank You and Stewardship Follow-Up

Once the donation is received, it’s crucial to show your appreciation and build a relationship with your donors. That’s why having a plan for thank you and stewardship follow-up is essential. Thanking your donors promptly and appropriately is crucial to building a lasting relationship with them. You should also have a plan in place to continue engaging with them through newsletters, updates, and events throughout the year.

Tip #4: Plan a Conversion Journey

Last but not least, you should have a plan in place to convert your current and new donors. A conversion journey is a sequence of actions aimed at nurturing prospects and turning them into loyal donors. You can start by segmenting your donors and crafting tailored communication strategies for each group. A conversion journey should include personalised follow-up, compelling storytelling, and clear calls-to-action.

Conclusion

The last three days of giving can be a game-changer for your charity’s fundraising if you approach them with a solid strategy in place. Designating a team, planning email blasts, having a plan for thank you and stewardship follow-up, and planning a conversion journey are just a few tips to get you started. Your donors are ready to give, so let’s make sure your charity is ready to receive and turn those year-end donations into long-term relationships.

The Crucial Role of Email

In today’s rapidly evolving world, digital connectivity has become paramount in most aspects of our lives, and the charity sector has not been left behind.

International fundraising, in particular, has become significantly reliant on digital engagement strategies, of which email is one of the most effective. However, despite its proven success, a considerable percentage of charities have yet to tap into the benefits of email fully.

In this article, our team of experts delve into the reasons why email is crucial for international fundraising and how you can make use of it to reach a broader audience, enhance donor relations and grow donations.

1. Access to a Broad Audience

While in-person fundraising can be highly effective, it is not always a feasible or cost-effective option for many non-profit organisations, especially those that operate internationally. Email is one of the most efficient ways to reach a vast audience in different parts of the world, allowing you to spread your message to those who would otherwise not have access to your cause. With a well-crafted email, you can connect with donors on a personal level, maintaining their engagement and securing their ongoing support.

2. Personalisation

By tailoring your emails to suit the interests, requirements, and preferences of your audience, you’ll see a significant increase in engagement. With the added advantage of generative AI for email creation, you can utilise data to further personalise your emails and achieve maximum impact. Boost open rates, click-through rates, and conversion rates with personalised content that resonates with your audience.

3. Growth in Fundraising Revenue

Email appeals have been found to generate a significant amount of revenue for non-profit organisations. In 2022, email messaging contributed to 11% of all online revenue, showcasing the power of email in fundraising. Moreover, studies indicate that for every 1,000 fundraising messages sent, charities raised $90 in 2022, clearly demonstrating the potential for email marketing to generate substantial donations for your organisation.

4. Cost-Effective

Unlike traditional forms of communciation, email is a cost-effective way to reach your target audience. Sending newsletters and appeals via email can help you avoid printing and postage costs while still maintaining the potential for a high return on investment. Additionally, with email subscribe pop-ups and gated content, you can grow your email list with minimal investment.

5. Improved Donor Relations—and Retention

Finally, email can help improve donor retention rates. According to a recent study, 26% of donors say email most inspires them to give, making it an excellent opportunity to connect with donors on a personal level while retaining their interest. With the ability to send regular updates and appeals via email, along with images and videos to show the impact of their support, you can keep your donors engaged and motivated to keep giving while building long-lasting relationships.

Conclusion

Email has become a significant tool in the arsenal of non-profit organisations, especially for international fundraising. With its ability to reach a broader audience, personalised messaging, cost-effectiveness, and potential for generating substantial donations, a robust email strategy is a must-have for any charity looking to grow and expand its reach. By leveraging the various tools and techniques of email communications, charities can connect with donors on a personal level, reinforce their message, and maintain strong donor relations for a brighter future.

Year-end giving is critical because it can generate a significant percentage of an organisation’s annual donations. However, it takes more than just asking for a solicitation to succeed. To maximise the potential of year-end giving, a solid plan is necessary. In this article, our team of international fundraising experts provide you with some tips and strategies that will help you plan for a successful year-end giving campaign

1. Know Your Donors

Different donor segments respond to different fundraising strategies. Knowing the demographics and motivations of your donors can help you craft specific messaging and approaches for each group. For example, major donors should be approached earlier with high-touch fundraising strategies, while smaller donors can be targeted with mass-emails or social media promotions. Reach out to donors through channels they prefer and are comfortable with to increase the chances of getting responses.

2. Start Early

According to the experts, the optimal time to start your fundraising efforts for the year-end giving season is in October. Don’t wait until December when many of your donors may already have allocated their giving budget elsewhere. Instead, create a timeline and schedule out your fundraising activities, making sure each strategy is optimised to maximise donations.

3. Capitalize on #GivingTuesday

#GivingTuesday, the international day of giving back, now in its 11th year, falls on November 28th this year. It’s a day to kick off the giving season and encourage people to donate to their favourite charities. Incorporating #GivingTuesday into your year-end giving strategy can provide an added boost in donations. You can create unique campaigns, social media posts, contests and use the popular hashtags to widen your reach.

4. Personalisation is Key

As mentioned before, knowing the demographics of your donors is essential, but personalisation goes beyond that. During year-end fundraising, donors expect some semblance of customisation and personalisation of solicitations. Use customised templates that show the donor their past gift-giving history, the impact of their gift, information on the number of people they’ve helped—this will make donors feel special and attached to the cause. Further, thank donors in a timely and personal way and tell them the positive impact that their gift has had.

5. A Strong Digital Campaign

Given the likelihood that many year-end donors will be online, it is essential to have a strong digital campaign. Use your social media and website to tell your organisation’s story and the causes you support, give visual evidence or social proof of your impact. By creating a multimedia year-end giving campaign spanning across email marketing, Facebook, Twitter, and Instagram, you can substantially increase the success of your outreach efforts.

Conclusion

In summary, year-end giving is a critical fundraising period for non-profit organisations and should be approached with a solid strategy. Knowing your donors, beginning early in the season, capitalizing on #GivingTuesday, personalising your approach, and creating a strong digital campaign are key components of a successful year-end giving campaign. Incorporate the tips discussed in this post, and you are sure to strengthen your year-end fundraising, achieve your monetary goals, and continue doing good towards your mission. Remember, start planning now, communicate effectively, and don’t forget to say thank you to your donors!